- Plant to produce 3mn tonnes of urea annually, boosting food security
- Ethiopia aims to join world’s top five producers, boost food security
LAGOS, NIGERIA – Nigeria’s Dangote Group has broken ground on a $2.5 billion fertiliser plant in Ethiopia, marking another major step in the company’s expansion across Africa’s industrial and agricultural sectors.
The project, located in Gode in southeastern Ethiopia, is a joint venture between the Dangote Group and Ethiopian Investment Holdings (EIH). The facility will have a production capacity of three million metric tonnes of urea per year and is expected to harness Ethiopia’s vast natural gas reserves from the Hilal and Calub fields.
“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent,” said Aliko Dangote, President and Chief Executive of Dangote Group, at the groundbreaking ceremony attended by Ethiopian Prime Minister Abiy Ahmed.
“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,” he added.
Expanding Ethiopia’s industrial base
Dangote praised Prime Minister Abiy Ahmed’s administration for pursuing reforms and economic liberalisation that have opened Ethiopia to private and foreign investment. He commended the government’s heavy investment in infrastructure – including energy, transport and the Grand Ethiopian Renaissance Dam – calling it the “foundation for the country’s industrialisation.”
The Nigerian billionaire said the Gode project was only the beginning. The group plans to expand into the production of other fertilisers, including ammonium nitrate, ammonium sulphate, NPK, and calcium ammonium nitrate, positioning Ethiopia as a regional fertiliser hub.
“Within five years, Ethiopia could become Africa’s leading agricultural nation,” Dangote said.
This project adds to Dangote Group’s growing footprint in Ethiopia. Its cement subsidiary has operated a 2.5 million tonnes per annum plant in Mugher for over a decade, with an additional $400 million investment earmarked to double its capacity.
Prime Minister Abiy described the fertiliser plant as “more than industrial progress,” saying it symbolised “shared responsibility, cooperation, and peace.” He said the project underscored Ethiopia’s determination to seize opportunities and enhance its global presence.
Africa-led industrialisation
Economist Marcel Okeke, a former chief economist at Nigeria’s Zenith Bank, said Dangote’s expansion across Africa reflected “an African man investing in African countries,” adding that it bodes well for the continent’s economic independence.
Foreign direct investment into Africa surged 75 percent in 2024 to a record $97 billion, according to UN Trade and Development. Okeke said Dangote’s investments complement these inflows while avoiding the conditionalities often attached to foreign capital.
“You know foreign direct investment comes with its own challenges. What Dangote is doing is born out of patriotism and nationalism,” he said.
He contrasted Dangote’s expansion with the recent exodus of multinational firms such as GlaxoSmithKline, Procter & Gamble, Unilever, Shoprite, and Diageo from Nigeria. “But Dangote is here, expanding his businesses. Whatever challenges arise in the countries he operates in, he will behave as an indigene and be part of the solution,” Okeke added.
Dangote Group also owns the $20 billion Dangote Refinery in Lagos, Nigeria – Africa’s largest industrial investment – with a capacity to refine 650,000 barrels of crude oil per day.
