Dangote Industries Limited has signed a $4.2 billion natural gas supply deal with China’s GCL Group to power a major fertilizer plant in Ethiopia.
The agreement was signed by Aliko Dangote, President of the company, in Lagos, according to a report by Business Insider on Monday, March 16.
The deal strengthens an earlier partnership between Dangote Industries Limited and Ethiopian Investment Holdings to develop a large-scale urea fertilizer complex in Gode, Ethiopia.
The $2.5 billion fertilizer project is a joint venture between Dangote Industries Limited (60% ownership) and Ethiopian Investment Holdings (40% ownership), with completion expected by 2029.
The natural gas agreement guarantees a 25-year energy supply, ensuring uninterrupted operations once the plant becomes operational.
“Africa’s largest industrial conglomerate, Dangote Industries Limited, has secured a $4.2 billion, 25-year natural gas supply deal with China’s GCL Group to power a major fertilizer expansion project in Ethiopia, highlighting one of the most ambitious China–Africa industrial partnerships in recent years,” the report stated.
Dangote said the project reflects a broader strategy to strengthen Africa’s industrial value chain and reduce reliance on imported finished products.
Zhu Gongshan, Chairman of GCL Group, said the partnership represents a new model of China–Africa industrial cooperation integrating gas supply, pipeline infrastructure, and fertilizer manufacturing.
