Dangote Breaks Ground on $2.5bn Fertiliser Plant in Ethiopia

Dangote Breaks Ground on $2.5bn Fertiliser Plant in Ethiopia

......Project to transform Horn of Africa’s agriculture, strengthen regional food security

A new chapter in Africa’s industrial drive unfolded on Thursday as Aliko Dangote, President and Chief Executive of the Dangote Group, led the groundbreaking ceremony for a $2.5 billion fertiliser plant in Gode, Ethiopia.

The massive project — a partnership between Dangote Group and Ethiopian Investment Holdings (EIH) — is designed to produce three million metric tonnes of urea annually, making it one of the world’s largest fertiliser complexes. Strategically located in Ethiopia’s South-East region, the plant will tap into the country’s rich natural gas reserves in Hilal and Calub to enhance agricultural productivity, create jobs, and bolster food security across the Horn of Africa.

Speaking at the ceremony, Ethiopian Prime Minister Abiy Ahmed hailed the project as a milestone for both industrial and regional cooperation. He described it as a symbol of “shared responsibility, unity, and peace,” adding that it reflects Ethiopia’s commitment to harnessing its opportunities and strengthening its global standing.

“They embody our shared responsibility to harness opportunities, strengthen cooperation, and promote peace,” Prime Minister 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, Africa’s richest man, praised the Ethiopian government for its far-reaching economic reforms and liberalisation efforts that have opened key sectors to private investment. He commended the administration’s investment in infrastructure, including energy and transport, describing the Grand Ethiopian Renaissance Dam as a cornerstone of the nation’s industrial 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 revealed that the Gode fertiliser complex is only the beginning, with plans to expand into the production of other fertilisers such as ammonium nitrate, ammonium sulphate, NPK, and calcium ammonium nitrate — all aimed at positioning Ethiopia as a regional hub for fertiliser production. According to him, Ethiopia could become Africa’s leading agricultural nation within five years.

This is Dangote Group’s second major investment in Ethiopia. The conglomerate already operates a 2.5 million tonnes per annum cement plant in Mugher, with an additional $400 million committed to doubling its capacity.

Dangote emphasised that the Group’s pan-African expansion is guided by the belief that “only Africans can develop Africa,” with a strategic focus on manufacturing to reduce import dependency. He cited Nigeria’s transformation from an import-dependent nation to a net exporter of cement, fertiliser, and petroleum products as proof of what is possible through industrial commitment and vision.

“These investments have already changed Nigeria’s story,” Dangote said. “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.”

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

Dangote also hinted at plans to establish a polypropylene bagging plant in Ethiopia to support the new fertiliser operation and local industry.

He expressed gratitude to financial partners including Afreximbank, Africa Finance Corporation, Access Bank, First Bank, Zenith Bank, and other indigenous banks for backing the project.

In his remarks, the President of the Somali Region, Mustafa Omar, described Aliko Dangote as “the anchor investor Ethiopia has been looking for,” commending his trustworthiness and pan-African commitment.

“Dangote is not only a trusted investor but one who is highly appreciated by both Ethiopians and Africans at large,” Omar said.

The groundbreaking event drew senior Ethiopian government officials, industry leaders, financiers, and international observers — marking another bold step in Dangote Group’s mission to industrialise Africa from within.