Aliko Dangote’s conglomerate has signed a $4.2 billion gas supply agreement with GCL Group to support the construction of a new fertilizer plant in Ethiopia. The deal is part of Dangote Industries’ expansion into East Africa and aims to strengthen agricultural production in the region.

According to company sources, the agreement ensures a stable and long-term supply of natural gas for the plant, which is expected to significantly increase fertilizer output and support food security initiatives in Ethiopia and neighboring countries. The project is also projected to create thousands of jobs and boost industrial development.

The fertilizer plant is a key component of Dangote’s strategy to expand its footprint across Africa, leveraging partnerships with global energy firms to secure essential feedstocks for large-scale production.

Analysts say the deal underscores Ethiopia’s potential as a regional hub for industrial agriculture and highlights Dangote’s commitment to supporting Africa’s economic growth through investment in infrastructure and manufacturing.

The agreement is expected to accelerate the construction timeline of the fertilizer plant, with operations anticipated to begin within the next few years once all logistical and regulatory processes are completed.

Officials from both companies described the collaboration as a milestone in Africa’s industrialization and a model for public-private partnerships in the energy and agricultural sectors.