Dangote Begins Construction of $2.5 Billion Fertiliser Plant in Ethiopia

Dangote Group has commenced the construction of a $2.5 billion fertiliser manufacturing complex in Gode, Ethiopia, marking a major milestone in Africa’s quest for self-sufficiency in agricultural inputs. The groundbreaking event followed the signing of a joint venture agreement between Dangote Industries Limited and the Ethiopian Investment Holdings (EIH), under which Dangote will hold 60 percent ownership, while EIH will control 40 percent. The state-of-the-art facility, upon completion, is expected to produce three million metric tons of urea fertiliser annually—making it one of the largest single-site urea plants in the world.

The project will be powered by natural gas sourced from Ethiopia’s Hilala and Calub fields. A dedicated gas pipeline will be constructed to transport feedstock to the Gode facility, ensuring a steady and sustainable supply for production. Dangote Group revealed that beyond urea, the plant would also support the production of other fertiliser variants such as ammonium nitrate, ammonium sulphate, and calcium ammonium nitrate to meet diverse agricultural demands across the region.

Speaking at the groundbreaking ceremony, Ethiopia’s Prime Minister Abiy Ahmed described the project as a transformative investment that will strengthen the country’s agricultural base and reduce dependence on imported fertilisers. He noted that local production would not only lower costs for farmers but also stabilise the market and boost food production, a key priority for the government. He commended Dangote Group for its continued confidence in Ethiopia’s economy and its commitment to Africa’s industrialisation.

Dangote Group Chairman, Aliko Dangote, stated that the investment reflects the company’s long-term vision of deepening Africa’s agricultural value chain through sustainable industrial projects. He emphasized that the Ethiopian plant aligns with Dangote’s strategy of investing in key sectors that drive development, job creation, and economic empowerment. According to him, Ethiopia’s growing population and fertile land present a huge opportunity for increased fertiliser demand, which the new plant will help to meet locally and regionally.

He added that the project is part of Dangote’s broader expansion plan across Africa, designed to ensure that countries on the continent can meet their food production needs without excessive reliance on imports. “Our goal is to create value where it matters most—by supporting Africa’s farmers, empowering local industries, and contributing to food security across the continent,” he said.

Ethiopian Investment Holdings CEO, Brook Taye, expressed optimism that the fertiliser plant would serve as a catalyst for industrial development and regional trade. He noted that the project would not only meet domestic demand but also provide export opportunities to neighbouring countries, earning valuable foreign exchange for Ethiopia. The plant’s location in Gode, Somali region, is expected to bring significant socio-economic benefits, including job creation, infrastructure development, and technology transfer to local communities.

The project also includes the construction of logistics and storage facilities, ensuring efficient distribution of fertiliser products across Ethiopia and other East African markets. Experts believe that the facility’s strategic location and production capacity could make Ethiopia one of the leading fertiliser producers in Africa. The collaboration between Dangote Group and the Ethiopian government has been described as a model for public-private partnerships aimed at fostering industrial growth in Africa.

Analysts have lauded the move as a timely intervention, noting that global fertiliser prices have been unstable due to disruptions in international supply chains. By establishing a domestic production base, Ethiopia is expected to save millions of dollars in annual import costs and improve access to affordable fertilisers for smallholder farmers. This could significantly boost agricultural yields and reduce the country’s vulnerability to food shortages.

In addition to its economic impact, the fertiliser project is expected to support environmental sustainability through the adoption of modern production technologies. Dangote Group has assured stakeholders that the facility will operate under strict environmental and safety standards, with systems in place to minimise emissions and manage waste responsibly. The company is also working closely with local authorities to ensure that the project aligns with Ethiopia’s environmental protection regulations.

The new plant will add to Dangote Group’s growing portfolio of industrial investments across Africa, which already includes major projects in cement, oil refining, and sugar production. The Group’s entry into the Ethiopian fertiliser sector is seen as another step in its mission to promote industrial independence on the continent. Once operational, the plant will not only contribute to Ethiopia’s economic diversification but also strengthen trade relations between Nigeria and Ethiopia.

Industry observers predict that the fertiliser complex will play a critical role in transforming Ethiopia’s agricultural productivity over the next decade. With local production of urea and other fertilisers, farmers will gain easier access to essential inputs, helping to increase crop yields and enhance food security. This development could also encourage the growth of agro-allied industries and stimulate job creation throughout the agricultural value chain.

In the coming months, construction activities are expected to intensify as contractors mobilize equipment and manpower to the project site. When fully completed, the Gode fertiliser plant will stand as one of Dangote Group’s most ambitious ventures outside Nigeria, representing a significant stride in Africa’s industrial integration and economic self-reliance. It underscores the potential of African partnerships to deliver sustainable growth through shared vision, innovation, and investment in key productive sectors.