Dangote Begins Construction Of $2.5bn Fertiliser Plant In Ethiopia

A new chapter in Africa’s industrial story opened last Thursday as Aliko Dangote, President/Chief Executive, Dangote Group, led the groundbreaking of a $2.5 billion fertiliser plant in Gode, Ethiopia.

The project, a partnership between Dangote Group and Ethiopian Investment Holdings (EIH), with a production capacity of three million metric tonnes of urea annually, is expected to become one of the world’s largest fertiliser complexes. Strategically located in Ethiopia’s South-East region, it will leverage its abundant natural gas resources from the Hilal and Calub reserves to boost agricultural productivity, create jobs, and enhance food security across the Horn of Africa.

Speaking at the ceremony, Prime Minister Abiy Ahmed described the fertiliser project as more than just industrial progress, stressing that it symbolises shared responsibility, cooperation, and peace.

PM Abiy said the project reflects Ethiopia’s commitment to harnessing opportunities and elevating its presence on the global stage.

“They embody our shared responsibility to harness opportunities, strengthen cooperation, and promote peace. Hence, I call upon all Ethiopians to continue mobilising in unity for progress,” Abiy said.

“By doing so, we elevate Ethiopia’s presence on the global stage in a way that honours the true spirit of our Ethiopian identity”.

Dangote commended Ethiopian Prime Minister Abiy Ahmed Ali and his cabinet for reforms and economic liberalisation that have opened key sectors to private investments and positioned Ethiopia as one of Africa’s most attractive destinations for global investors. He lauded the government’s investment in infrastructure, including transport, energy, and the Grand Ethiopian Renaissance Dam, which he described as a foundation for the country’s industrialisation.

“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent,” Dangote said. “We are committed to bringing our decades of experience in large-scale industrial projects to ensure this venture becomes a cornerstone of Ethiopia’s industrial transformation.”

Dangote disclosed that the Gode project marks just the beginning, with plans to expand into the production of other fertilisers such as ammonium nitrate, ammonium sulphate, NPK, and calcium ammonium nitrate, positioning Ethiopia as a regional hub for fertiliser production. He predicted that Ethiopia could become Africa’s leading agricultural nation within five years.

This investment is Dangote Group’s second major project in Ethiopia. Its cement subsidiary has operated a 2.5Mta plant in Mugher for more than a decade, with an additional $400 million committed to doubling its capacity.

Across Africa, Dangote said the Group’s strategy is guided by the belief that “only Africans can develop Africa,” with a focus on manufacturing to reduce dependence on imports. He highlighted the Group’s role in transforming Nigeria into a net exporter of petroleum products, cement, and fertiliser, through its refinery, cement plants, and fertiliser expansion, which is set to become the largest in the world at nine million metric tonnes per annum.

“These investments have already changed Nigeria’s story,” Dangote noted. “We’ve moved from being import-dependent to becoming self-sufficient and even exporters of cement, fertiliser, and petroleum products. Our mission is to help other African nations achieve the same transformation. We strive to make African countries self-sufficient in producing goods whose necessary raw materials are readily available. We have demonstrated that feat in the cement sector, where many African countries are now net exporters of cement through our investments. We are ready and happy to work with more African countries to drive their industrialisation plans and aspirations.”

He described the Gode project as a “new dawn,” the first time a private African investor is partnering with an African country to build an industrial complex of this scale. “We understand Africa, its challenges, opportunities, and potential. And we believe only Africans can truly transform Africa,” he said.

“Our mission at Dangote Group is to lead Africa’s industrial transformation,” he said. “This project marks the first time a private African investor is partnering with an African country to build such an industrial complex.”

He hinted at establishing a polypropylene bagging plant to boost the industry in Ethiopia.

Dangote thanked financial institutions, including Afreximbank, Africa Finance Corporation, Access Bank, First Bank, Zenith Bank, and other indigenous banks for supporting the project.

Meanwhile, the president of the Somali Region, Mustafa Omar, described Aliko Dangote as “the anchor investor Ethiopia has been looking for.”

He noted that Dangote is not only a trusted investor but also one who is highly appreciated by both Ethiopians and Africans at large.

The chairman of the Nigerian Exchange Group (NGX), Dr Umaru Kwairanga, has praised Ethiopia’s leadership for its economic strides and voiced optimism about stronger economic relations between Nigeria and Ethiopia.

Speaking on the new fertiliser complex, Dr Kwairanga described it as a “gigantic project befitting of Aliko Dangote’s vision and execution capacity.”

He noted that the African industrialist had consistently demonstrated a strong commitment to advancing the continent’s self-sufficiency and development.

The Group’s industrial story is expanding across Africa. Dangote Cement alone has a total installed capacity of 55 million tonnes annually across 11 countries. The company also built Nigeria’s largest single-train refinery, with a capacity of 650,000 barrels per day, alongside a one-million-metric-tonne polypropylene plant. Its fertiliser arm, which started at three million metric tonnes, is being expanded by six million tonnes, a move that will make it the largest fertiliser operation in the world.