Aliko Dangote, President and Chief Executive of the Dangote Group, has broken ground on a $2.5 billion fertiliser plant in Gode, Ethiopia. The project, a partnership between Dangote Group and Ethiopian Investment Holdings, aims 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 utilise the country’s abundant natural gas resources to boost agricultural productivity, create jobs, and enhance food security across the Horn of Africa.
Ethiopian Prime Minister Abiy Ahmed attended the groundbreaking ceremony, describing the project as a symbol of shared responsibility, cooperation, and peace. He emphasized the project’s significance in elevating Ethiopia’s presence on the global stage and promoting industrial progress. Dangote commended Prime Minister Abiy Ahmed and his cabinet for implementing reforms and economic liberalisation, which have opened key sectors to private investments and positioned Ethiopia as an attractive destination for global investors.
The Dangote Group plans to expand the project to produce other fertilisers, such as ammonium nitrate, ammonium sulphate, NPK, and calcium ammonium nitrate, positioning Ethiopia as a regional hub for fertiliser production. Dangote predicted that within five years, Ethiopia could become Africa’s leading agricultural nation. The investment is the Dangote Group’s second major project in Ethiopia, following its cement subsidiary’s operation in Mugher.
Dangote highlighted the Group’s strategy, guided by the belief that “only Africans can develop Africa,” with a focus on manufacturing to reduce dependence on imports. He noted that the Group’s investments have transformed Nigeria into a net exporter of petroleum products, cement, and fertiliser. The Gode project marks a “new dawn” in private African investment, with Dangote expressing commitment to leading Africa’s industrial transformation.
The project has received support from financial institutions, including Afreximbank, Africa Finance Corporation, and indigenous banks. The President of the Somali Region, Mustafa Omar, praised Dangote as “the anchor investor Ethiopia has been looking for,” while the Chairman of the Nigerian Exchange Group, Dr Umaru Kwairanga, commended Ethiopia’s leadership for its economic strides and expressed optimism about stronger economic relations between Nigeria and Ethiopia.
The groundbreaking ceremony was attended by senior Ethiopian government officials, industry leaders, and financiers. The project’s significance lies in its potential to enhance food security, create jobs, and promote industrial progress in Ethiopia and the broader Horn of Africa region. As the project progresses, it is expected to have a positive impact on the regional economy and reinforce Dangote’s commitment to leading Africa’s industrial transformation.