Dangote builds $2.5bn plant in Ethiopia

The President and Chief Executive Officer of Dangote Group, Aliko Dangote, has officially commenced the construction of a $2.5 billion fertiliser plant in Gode, Ethiopia. According to a statement released by the company on Sunday, the project is a partnership between Dangote Group and Ethiopian Investment Holdings. Once completed, the facility will have an annual production capacity of three million metric tonnes of urea, ranking among the world’s largest fertiliser complexes.

Situated in Ethiopia’s South-East region, the project will harness the country’s rich natural gas reserves from the Hilal and Calub fields. It is expected to significantly boost agricultural productivity, generate thousands of jobs, and strengthen food security across the Horn of Africa.

At the groundbreaking ceremony, Ethiopian Prime Minister Abiy Ahmed hailed the project as a symbol of unity, cooperation, and progress. He emphasised that the fertiliser plant represents more than an industrial milestone,it reflects Ethiopia’s vision of collective responsibility and peaceful development. “This project embodies our shared duty to harness opportunities, foster collaboration, and promote peace,” Abiy stated. “By working together, we elevate Ethiopia’s global standing and honour the spirit of our national identity.”

Dangote, in his address, expressed gratitude to the Ethiopian government for its economic reforms and liberalisation efforts, which have opened major sectors to private investment. He commended the country’s substantial infrastructure investments, including in transport, power, and the Grand Ethiopian Renaissance Dam, describing them as vital foundations for industrialisation.

He described the partnership with Ethiopian Investment Holdings as a significant step toward Africa’s broader goal of industrialisation and self-sufficiency in food production. “We are bringing our vast experience in large-scale industrial projects to ensure this venture becomes a cornerstone of Ethiopia’s economic transformation,” he said.

Dangote further revealed that the Gode plant marks the beginning of a larger fertiliser production plan, which will later include other products such as ammonium nitrate, ammonium sulphate, NPK, and calcium ammonium nitrate. This expansion aims to establish Ethiopia as a major regional hub for fertiliser production. He expressed optimism that within five years, Ethiopia could become Africa’s leading agricultural powerhouse.

This development marks Dangote Group’s second major investment in Ethiopia. Its cement subsidiary has operated a 2.5 million-tonne-per-annum plant in Mugher for over a decade, with an additional $400 million earmarked to double its capacity. Across Africa, Dangote noted, the group’s philosophy is rooted in the belief that Africans must lead the continent’s development through manufacturing and industrialisation to reduce dependence on imports.

Highlighting the company’s achievements in Nigeria, Dangote said the group’s investments in petroleum refining, cement, and fertiliser have transformed Nigeria into a self-sufficient and exporting nation. “These investments have rewritten Nigeria’s story,” he said. “We have moved from import dependency to becoming exporters of key industrial products. Our goal is to replicate this success across Africa.”

He also announced plans to set up a polypropylene bagging plant to support Ethiopia’s growing industrial base.

The President of the Somali Region, Mustafa Omar, praised Dangote as the anchor investor Ethiopia had been seeking, describing him as a trusted and respected figure across Africa. Similarly, the Chairman of the Nigerian Exchange Group, Dr. Umaru Kwairanga, lauded Ethiopia’s leadership for its bold economic reforms and expressed optimism about stronger economic cooperation between Nigeria and Ethiopia.

Financial institutions including Afreximbank, Africa Finance Corporation, Access Bank, First Bank, and Zenith Bank were acknowledged for their roles in financing the project.

Dangote concluded by reaffirming his belief in Africa’s potential, saying, “This project marks a new dawn. It’s the first time a private African investor is partnering with an African government to build such an industrial complex. We understand Africa, its challenges, and its opportunities,and we believe only Africans can truly transform Africa.”