Dangote Industries Limited has signed a landmark $4.2 billion, 25-year natural gas supply agreement with GCL Group to support its fertilizer expansion in Ethiopia. The deal is considered one of the most significant China–Africa industrial partnerships to date.
The agreement, signed in Lagos, will provide a stable supply of natural gas to Dangote Group’s upcoming 3‑million‑tonne-per-year urea fertilizer complex in Gode. Valued at $2.5 billion, the project is structured under a 60:40 equity partnership between Dangote Group and Ethiopian Investment Holdings and is slated to commence operations in 2029.
Once operational, the facility will become East Africa’s largest modern fertilizer hub, meeting Ethiopia’s current urea import demand while supplying neighboring regional markets. The project is expected to reshape the fertilizer landscape, reduce reliance on imports, and enhance agricultural self-sufficiency in the region.
The natural gas for the plant will be sourced from the Calub Gas Field and delivered via a dedicated 108-kilometre pipeline directly to the fertilizer complex. The initiative aligns with Africa’s broader goal of creating an integrated energy-to-food value chain, leveraging local resources to drive industrial autonomy.
Speaking on the partnership, Aliko Dangote emphasized the importance of self-sufficient development:
“Africa’s energy industry cannot continue indefinitely exporting raw materials while importing finished products. Through seamless integration and strategic cooperation with GCL, we will achieve an efficient closed-loop value chain from natural gas extraction to fertilizer production, taking a crucial step toward enabling Africa to secure greater autonomy over its food security.”
Zhu Gongshan highlighted GCL’s commitment to the project, noting the Ethiopian government’s support:
“This cooperation will enable both sides to expand new frontiers in Ethiopia’s energy, chemical, and food security sectors while transitioning from a ‘business going global’ model toward a mutually beneficial ecosystem-based framework.”
The agreement is expected to catalyze long-term economic transformation in East Africa. Leveraging its “gas–power–computing” industrial model, GCL will integrate Chinese technological solutions with Africa’s resource endowments, enhancing industrial and energy integration in the region.
Industry analysts note the project’s strategic benefits, including achieving fertilizer self-sufficiency in Ethiopia, stimulating industrial growth in the Somali Region, creating thousands of jobs, advancing regional infrastructure, and supporting low-carbon industrial development.
By integrating upstream gas extraction, midstream pipeline transport, and downstream fertilizer production, the project establishes a complete closed-loop “gas-to-fertilizer” industrial chain, blending Chinese technological expertise with African resources.
As a flagship initiative under the Belt and Road framework, the partnership demonstrates the synergy between energy development and agricultural advancement, helping Ethiopia and the wider African region move toward energy independence, industrial revitalization, and food self-sufficiency.
The historic deal positions East Africa as a hub for modern fertilizer production and sets a benchmark for future large-scale, resource-driven industrial collaborations between Africa and China.
