On Tuesday, March 17, 2026, Africa’s richest businessman, Aliko Dangote, signed a $4.2 billion, 25-year natural gas supply agreement with China’s GCL Group to power his new fertiliser plant in Ethiopia.
The gas will be sourced from the Calub Gas Field in Ethiopia’s Ogaden Basin and transported through a 108-kilometre pipeline directly to the plant in Gode, in the Somali Region.
The agreement ensures a steady fuel supply for the facility, which is expected to begin production in 2029.
The fertilizer plant, valued at $2.5 billion, is being developed through a joint venture between Dangote Industries Limited (holding 60 percent) and Ethiopian Investment Holdings (holding 40 percent), the country’s sovereign investment arm.
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Once completed, the complex will produce three million tonnes of urea annually, making it the largest modern fertiliser facility in East Africa.
Dangote described the project as part of a broader strategy to create integrated industrial value chains in Africa, linking natural resources directly to manufacturing to reduce reliance on imports and strengthen local economies.
Experts say the agreement is a major milestone in Africa-China industrial cooperation, with the plant expected to boost food security in Ethiopia and increase fertilizer exports across the region.