By Obiabin Onukwugha
Africa’s foremost industrialist, Aliko Dangote has made new inroads as Dangote Industries Limited signed a $4.2 billion, 25-year, natural gas deal with China’s GCL Group to fuel a large urea fertilizer plant in Ethiopia.
The landmark agreement, finalized in Lagos, highlights the strategic nature of the partnership and the growing role of Chinese-African industrial collaborations across the continent.
NatureNews reports that the deal also highlights one of the most ambitious China–Africa industrial partnerships in recent years.
The agreement will provide long-term gas supply for Dangote’s planned 3-million-tonne-per-year urea fertilizer complex, a facility expected to transform fertilizer production across East Africa.
The fertilizer plant, valued at $2.5 billion, is being developed through a joint venture between Dangote Group and Ethiopian Investment Holdings, which hold 60% and 40% stakes respectively. Construction is scheduled to be completed by 2029.
Once operational, the complex is set to become East Africa’s largest modern fertilizer production hub, supplying Ethiopia’s domestic urea needs while also reaching neighboring regional markets.
Business Insider Africa reported that Ethiopia fertilizer project highlights the growing continental influence of Aliko Dangote, Africa’s richest person and founder of Dangote Industries, whose businesses now span multiple strategic sectors including cement, energy, petrochemicals and food processing.
Over the past two decades, Dangote has built Africa’s largest cement manufacturing network through Dangote Cement, with operations across more than a dozen African countries. The group has also expanded aggressively into energy and petrochemicals, most notably through the Dangote Refinery, the world’s largest single-train oil refinery located in Nigeria.
Speaking on the partnership, Dangote said: “Africa’s energy industry cannot continue indefinitely exporting raw materials while importing finished products. The partnership with GCL would help build an integrated value chain from natural gas extraction to fertilizer production.”
Chairman of GCL Group Zhu Gongshan, on his paet states that the project represents a new model of China–Africa industrial cooperation that integrates upstream gas production, pipeline infrastructure and downstream fertilizer manufacturing.