Dangote Flags Off $2.5bn Fertiliser Complex in Ethiopia

Aliko Dangote has kicked off construction of a $2.5 billion fertiliser complex in Gode, Ethiopia, positioning the Horn of Africa country for a major push in food production and industrial growth.

The project, developed with Ethiopian Investment Holdings, is designed to produce up to three million metric tonnes of urea each year, placing it among the largest single-site fertiliser facilities anywhere.

The plant will draw natural gas from the Hilal and Calub fields in Ethiopia’s southeast, converting domestic resources into crop nutrients for farmers at home and across neighbouring markets. Thousands of direct and indirect jobs are expected through the build and ramp-up.

At the groundbreaking, Prime Minister Abiy Ahmed framed the project as a national effort that blends opportunity, cooperation and stability, and urged citizens to rally behind initiatives that lift Ethiopia’s global standing.

A wider bet on African industrial capacity

For Dangote, the Gode complex extends a continental playbook: reduce import dependence by building large, local manufacturing assets.

He credited Ethiopia’s recent investments in transport and power for making the venture viable and argued that a steady, affordable supply of fertiliser can unlock yield gains quickly. With the right logistics and market access, he projected Ethiopia could challenge for Africa’s top agricultural spot within five years.

While Phase One focuses on urea, the Dangote Group says the roadmap includes ammonium nitrate, ammonium sulphate, NPK blends, and calcium ammonium nitrate.

That mix would turn Gode into a fertiliser hub for the region, supporting everything from staple grains to higher-value crops.

The group already operates a 2.5 million tonne per annum cement plant in Mugher and has earmarked about $400 million to double that capacity, underscoring a longer-term commitment to the market.

Backing from African financiers and partners

Regional leaders and investors welcomed the move. Somali Region President Mustafa Omar called Dangote a cornerstone investor for Ethiopia’s growth plans, while Nigerian Exchange Group chairman Dr Umaru Kwairanga predicted closer commercial ties between Abuja and Addis Ababa.

On the financing side, Dangote acknowledged support from African lenders, including Afreximbank, Africa Finance Corporation, Access Bank, First Bank and Zenith Bank.

Why Nigerians should watch this project

Fertiliser remains one of the fastest ways to lift yields and reduce food import bills across Africa. If Gode comes onstream as planned, it could ease supply pressures, stabilise prices and open new export routes that benefit West African traders and producers.

Nigeria’s own experience in cement and fertiliser shows how local scale can flip a market from chronic imports to surplus. The Ethiopian build is a fresh test of that model in a different geography, backed by African capital and policy.