Dangote considers listing Ethiopian fertilizer firm

Aliko Dangote, a prominent Nigerian businessman, is exploring the possibility of listing at least 10 percent of his Ethiopian fertilizer company on the Ethiopian Securities Exchange (ESE), the country's main stock market. This move could help the company raise capital in Ethiopia, where listing options are currently limited.

Ownership structure of the company

The fertilizer company is owned 60 percent by the Dangote Group and 40 percent by Ethiopian Investment Holdings, the country’s sovereign wealth fund. However, no specific date for an initial public offering has been announced, nor have details on the offering price or investor qualifications been shared.

Scale and purpose of the fertilizer plant

The urea-based fertilizer plant being built in Gode, southeastern Ethiopia, is designed to produce 3 million tons of fertilizer annually. This would significantly reduce Ethiopia’s reliance on imports, which totaled around 366,500 tons of urea in 2025, valued at 151 million dollars, according to the World Bank’s WITS database.

Project cost and expansion

Construction of the plant began in October 2025, supported by Aliko Dangote and Prime Minister Abiy Ahmed. The project’s cost has now surpassed 4 billion dollars, up from an initial estimate of 2.5 billion. The scope has expanded to include a pipeline, power plant, conditioning unit, and mixing facility, with commissioning expected in 2029.

Ethiopia's role in Dangote's African investments

During a meeting with investors in Addis Ababa, Dangote emphasized Ethiopia’s central role in his broader 40 to 50 billion dollar investment plan across Africa. This includes projects in fertilizer, cement, oil refining, petrochemicals, and electricity. Ethiopia will host some of the group’s major projects outside Nigeria.

Ethiopian participation in Nigerian IPO

Dangote also invited Ethiopian investors to participate in the initial public offering of Dangote Petroleum Refinery and Petrochemicals in Nigeria. The offering, which began on September 14, had its subscription deadline extended to October 27 to accommodate increased interest and participation from other African countries.

Regulatory requirements for Ethiopian investors

In Ethiopia, participation in the IPO is subject to regulatory conditions. The Ethiopian financial markets authority has limited subscriptions to 100 qualified investors, or those authorized by the authority. These include individuals with a net worth of at least 10 million Ethiopian birr, excluding their primary residence and car. Three financial intermediaries have been approved to handle the offering in the country.