Dangote Leads Groundbreaking of $2.5bn Fertiliser Plant in Ethiopia, Targets Regional Food Security and Industrial Growth
Africa’s foremost industrialist and President of the Dangote Group, Aliko Dangote, has led the groundbreaking ceremony for a $2.5 billion fertiliser plant in Gode, Ethiopia, marking a new milestone in continental industrial collaboration.
According to a statement released by the Dangote Group on Sunday, the massive project — a partnership between the Dangote Group and Ethiopian Investment Holdings (EIH) — will have a production capacity of three million metric tonnes of urea annually, positioning it among the largest fertiliser complexes in the world.
Boosting Agriculture and Regional Economy
Located in Ethiopia’s South-East region, the plant is expected to utilise natural gas resources from the Hilal and Calub reserves to drive agricultural productivity, create thousands of jobs, and enhance food security across the Horn of Africa.
Speaking at the ceremony, Ethiopian Prime Minister Abiy Ahmed hailed the project as a symbol of partnership and shared progress rather than just industrial expansion.
“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 Commends Ethiopia’s Economic Reforms
In his remarks, Aliko Dangote lauded Ethiopia’s leadership for implementing economic liberalisation policies that have opened critical sectors to private investment, describing them as a foundation for industrialisation and long-term growth.
“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.”
He praised Ethiopia’s significant infrastructure investments, including in transport, energy, and the Grand Ethiopian Renaissance Dam (GERD), which he said have laid the groundwork for sustained industrial development.
Expansion Plans and Broader Vision
Dangote disclosed that the Gode fertiliser plant is only the beginning, with plans to expand into the production of ammonium nitrate, ammonium sulphate, NPK, and calcium ammonium nitrate. These additions, he noted, would position Ethiopia as a regional hub for fertiliser production and agricultural innovation.
He projected that within five years, Ethiopia could become Africa’s leading agricultural nation, supported by strong local manufacturing capacity.
“The Gode project is a new dawn. This marks the first time a private African investor is partnering with an African country to build such an industrial complex. We understand Africa, its challenges, its opportunities, and its potential. And we believe only Africans can truly transform Africa,” he said.
Strengthening African Industrial Cooperation
The statement highlighted that this is Dangote’s second major investment in Ethiopia, following his 2.5 Mtpa cement plant in Mugher, which has operated for over a decade. The group recently committed an additional $400 million to double its capacity.
Dangote reiterated that the group’s broader strategy is guided by the conviction that “only Africans can develop Africa,” with a focus on manufacturing to reduce dependence on imports.
He also commended key financial partners — including Afreximbank, Africa Finance Corporation, Access Bank, First Bank, and Zenith Bank — for supporting the new venture.
Regional Reactions and Diplomatic Impact
The President of Ethiopia’s Somali Region, Mustafa Omar, described Dangote as “the anchor investor Ethiopia has been looking for,” praising his enduring reputation across Africa.
“Dangote is not only a trusted investor but one who is highly appreciated by both Ethiopians and Africans at large,” Omar stated.
Similarly, Dr. Umaru Kwairanga, Chairman of the Nigerian Exchange Group, lauded Ethiopia’s economic reforms and expressed optimism that the project would deepen economic ties between Nigeria and Ethiopia.
Transforming Africa’s Industrial Landscape
Dangote noted that the success of his group’s projects in Nigeria — including the refinery, cement plants, and fertiliser expansion — has transformed the nation from a major importer to a net exporter of petroleum products, cement, and fertiliser.
“These investments have already changed Nigeria’s story,” he said. “We’ve moved from being import-dependent to becoming self-sufficient and even exporters. We are ready and happy to work with more African countries to drive their industrialisation plans and aspirations.”
With the groundbreaking of the Gode fertiliser plant, the Dangote Group reinforces its role as a continental catalyst for industrial growth, advancing Africa’s self-reliance agenda through large-scale, pan-African investment partnerships.