The Dangote Group has begun construction of a $2.5 billion fertiliser complex in Ethiopia, marking one of the largest industrial investments in the country’s history and deepening economic ties between Africa’s two biggest economies.
Aliko Dangote, the Nigerian billionaire and president of the conglomerate, led the groundbreaking in Gode, Ethiopia’s Somali region, alongside Prime Minister Abiy Ahmed Ali and officials of the Ethiopian Investment Holdings (EIH), co-partner in the joint venture.
The plant will produce three million metric tonnes of urea annually, positioning it among the world’s biggest fertiliser hubs. Dangote said the complex would rely on Ethiopia’s Hilal and Calub natural gas reserves to boost agricultural productivity and food security across the Horn of Africa.
“By doing so, we elevate Ethiopia’s presence on the global stage in a way that honours the true spirit of our Ethiopian identity,” Prime Minister Abiy told the gathering, calling the project a symbol of shared responsibility and peace.
Dangote praised Ethiopia’s economic reforms and heavy infrastructure investments, saying they created an enabling environment for industrial growth. “This partnership represents a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent,” he said.
The fertiliser plant is Dangote’s second major investment in Ethiopia, following his cement subsidiary’s 2.5 million tonnes per annum plant in Mugher, with a further $400 million expansion underway.
Dangote said the Gode project was only the beginning. Plans include ammonium nitrate, ammonium sulphate, NPK, and calcium ammonium nitrate production, with a polypropylene bagging plant to support local industry.
“We’ve moved Nigeria from being import-dependent to becoming self-sufficient and even exporters of cement, fertiliser, and petroleum products,” he said. “Our mission is to help other African nations achieve the same transformation.”
The project is backed by financing from Afreximbank, Africa Finance Corporation, Access Bank, Zenith Bank, First Bank, and other African lenders.
Mustafa Omar, president of Ethiopia’s Somali region, hailed Dangote as “the anchor investor Ethiopia has been looking for.” Umaru Kwairanga, chairman of Nigerian Exchange Group, described the fertiliser complex as a “gigantic project befitting of Dangote’s vision and execution capacity.”
Dangote called the initiative “a new dawn” — the first time a private African investor has partnered with an African government to deliver an industrial complex on such a scale. “We believe only Africans can truly transform Africa,” he said.
