The Saudi Arabian Mining Company (Ma’aden) is in discussions with the Ethiopian Agricultural Businesses Corporation (EABC) over a proposed long-term agreement to supply Diammonium Phosphate (DAP) fertilizer directly to Ethiopia under a government-to-government (G2G) framework.
The discussions took place on July 21, 2026, at the EABC headquarters in Addis Ababa and focused on establishing a direct procurement partnership between the Ethiopian government and Ma’aden. According to EABC Executive Director of Agricultural Inputs Supply Bewketu Yaregal, the proposed agreement would span three years and provide Ethiopia with a stable supply of high-quality DAP fertilizer at competitive market prices.
Direct Supply to Strengthen Fertilizer Security
If finalized, the agreement would allow Ethiopia to source fertilizer directly from the Saudi producer, reducing reliance on intermediaries and streamlining the procurement process.
The direct purchasing model is expected to lower transportation and handling costs while strengthening quality assurance across the fertilizer supply chain. Saudi Arabia’s close geographical location is also expected to shorten delivery times, helping fertilizer reach Ethiopian farmers ahead of critical planting seasons.
Technical Cooperation Beyond Supply
In addition to commercial supply, both parties discussed opportunities for technical collaboration aimed at improving agricultural productivity.
Potential initiatives include training Ethiopian farmers on efficient fertilizer application techniques, soil nutrient management, and best practices for optimizing fertilizer use.
Ma’aden Recognized for Supply Continuity
During the meeting, EABC acknowledged Ma’aden’s efforts to maintain uninterrupted fertilizer deliveries during regional shipping disruptions caused by tensions involving the United States, Israel, and Iran.
According to the corporation, Ma’aden successfully rerouted shipments through alternative land routes and Red Sea shipping corridors via western Saudi ports, preventing supply shortages and ensuring continuity of fertilizer deliveries.
Formal Agreement Expected Soon
The two sides are expected to continue negotiations in coordination with the EABC Board of Management and Ethiopia’s Ministry of Agriculture before signing a formal multi-year agreement.
If concluded, the partnership would reinforce Ma’aden’s position as a strategic regional supplier of phosphate fertilizers while supporting Ethiopia’s long-term agricultural development and food security objectives.
Source: Ethiopia Today
