Dangote announces $2.5bn Ethiopia plant to triple fertilizer output

Dangote Industries has unveiled plans to significantly boost its fertilizer production capacity with the construction of a $2.5 billion plant in Ethiopia, a move set to triple output and expand the company’s footprint in Africa’s agricultural sector. The announcement underscores Dangote’s commitment to addressing food security challenges, supporting agricultural development, and contributing to the continent’s industrial growth agenda. The plant is expected to become a major hub for fertilizer manufacturing, supplying both domestic and regional markets.

According to Dangote executives, the new facility is strategically located in Ethiopia to leverage the country’s favorable logistics, access to raw materials, and growing agricultural market. The project is designed to produce a wide range of fertilizers, including nitrogen-based and compound blends, with the aim of increasing availability, lowering costs, and enhancing productivity for farmers across East Africa. By tripling production, the company aims to meet rising demand driven by government programs, private agribusiness investments, and initiatives aimed at boosting crop yields in the region.

The plant is part of Dangote’s broader agricultural investment strategy, which includes enhancing local manufacturing capacity, creating jobs, and promoting sustainable farming practices. It is expected to generate thousands of direct and indirect employment opportunities, spanning construction, operations, logistics, and technical services. Dangote Industries noted that significant attention will be given to workforce development, including skills training and capacity building for local employees, in line with the company’s industrial development objectives.

Executives explained that the facility’s design incorporates modern technologies to ensure efficiency, energy optimization, and environmental compliance. The plant will employ state-of-the-art production systems aimed at reducing waste, improving yield, and adhering to international standards for quality and safety. Sustainability, the company stated, is a core principle of the project, with efforts to minimize environmental impact and promote responsible chemical management throughout the production and distribution chain.

The expansion into Ethiopia also reflects Dangote’s vision of strengthening Africa’s agricultural value chain. Fertilizer access remains a major constraint for many farmers, and increasing local production is expected to reduce dependency on imports, stabilize prices, and improve availability. By establishing a regional hub, Dangote is positioning itself to support not only Ethiopia but neighboring countries seeking reliable and affordable fertilizer supplies to boost crop production.

Government officials in Ethiopia welcomed the project, highlighting the potential benefits for food security, economic growth, and industrialization. They noted that foreign investment of this scale is critical for advancing the country’s agricultural transformation agenda, creating jobs, and fostering technology transfer. The Ethiopian government has reportedly committed to providing support in areas such as land acquisition, regulatory approvals, and infrastructure development to facilitate timely completion and smooth operations.

Analysts say the investment aligns with broader trends in Africa where private sector involvement is increasingly seen as vital to boosting agricultural output and achieving self-sufficiency in key commodities. Fertilizer production, in particular, is recognized as a strategic sector, given its impact on crop yields, export potential, and overall economic stability. Dangote’s investment is therefore viewed as a catalyst for both regional agricultural productivity and industrial growth.

The facility is expected to integrate with Dangote’s existing fertilizer operations, allowing for shared expertise, optimized supply chains, and coordination in distribution networks across the continent. The company has emphasized that collaboration with local farmers, cooperatives, and agribusinesses will be central to maximizing the impact of the new plant, ensuring that products reach the communities that need them most.

Construction of the Ethiopia plant is slated to begin immediately, with the project scheduled for phased completion over the next three years. Dangote Industries anticipates that the first phase will bring substantial production capacity online, followed by further expansion to achieve the full tripling of output. The company has committed to adhering to international project management standards to ensure timely delivery and operational readiness.

The announcement reinforces Dangote’s position as a leading industrial player in Africa, with strategic investments spanning cement, agriculture, energy, and petrochemicals. By increasing fertilizer production, the company aims not only to drive its business growth but also to contribute meaningfully to agricultural sustainability, food security, and regional economic development.

 

With this latest initiative, Dangote is poised to transform fertilizer availability in East Africa, strengthen industrial capacity, and demonstrate the potential for large-scale private investment to shape Africa’s agricultural future. The Ethiopia plant represents a major step in realizing these objectives, promising far-reaching benefits for farmers, communities, and the broader economy.