Dangote Group, Ethiopian Investment Holdings begin construction of $2.5bn fertiliser plant in Ethiopia

The Dangote Group, a Nigerian industrial conglomerate, has commenced the construction of a $2.5 billion fertiliser plant in Gode, Ethiopia.

According to a statement on Sunday, Aliko Dangote, the group’s founder and president, led the groundbreaking ceremony, which took place recently in the East African nation.

The project, a joint venture between the conglomerate and the Ethiopian Investment Holdings (EIH), is expected to have an annual production capacity of three million metric tonnes of urea, positioning it among the largest fertiliser complexes in the world.

“Strategically located in Ethiopia’s South-East region, it will leverage the country’s abundant natural gas resources from the Hilal and Calub reserves to boost agricultural productivity, create jobs, and enhance food security across the Horn of Africa,” the group said.

Speaking at the groundbreaking ceremony, Ethiopian Prime Minister Abiy Ahmed Ali said the project is more than just an industrial progress and reflects shared responsibility, cooperation, and peace.

“They embody our shared responsibility to harness opportunities, strengthen cooperation, and promote peace. Hence, I call upon all Ethiopians to continue mobilizing in unity for progress,” Ali said.

“By doing so, we elevate Ethiopia’s presence on the global stage in a way that honors the true spirit of our Ethiopian identity.”

On his part, Dangote commended the prime minister and his cabinet for reforms and economic liberalisation that have opened key sectors to private capital, positioning Ethiopia as a leading investment destination in Africa.

He also praised the country’s investments in infrastructure — including transport, energy, and the grand Ethiopian renaissance dam — as foundations for industrial transformation.

“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.”

The billionaire said the Gode project marks the beginning of plans to produce ammonium nitrate, ammonium sulphate, NPK, and calcium ammonium nitrate, with the aim of making the country a regional fertiliser hub.

The group president said Ethiopia could become Africa’s leading agricultural nation within the next five years.

According to the statement, the investment is Dangote Group’s second major project in Ethiopia.

The firm’s cement subsidiary has operated a 2.5 million tonnes per annum (Mta) plant in Mugher for over a decade, with a further $400 million committed to doubling its capacity.

‘NIGERIA READY TO WORK WITH AFRICAN COUNTRIES ON INDUSTRALISATION’

Dangote said the group’s expansion strategy across Africa is guided by a belief that “only Africans can develop Africa”, with a focus on manufacturing to cut reliance on imports.

He cited Nigeria as a case study, where the organisation has helped to turn the country into a net exporter of cement, fertiliser, and petroleum products through its refinery, cement plants, and fertiliser expansion.

“These investments have already changed Nigeria’s story,” Dangote was quoted as saying.

“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. We are ready and happy to work with more African countries to drive their industrialization plans and aspirations.”

He described the Gode fertiliser project as a “new dawn”, signalling the first time a private African investor is partnering with an African country to build an industrial complex of such scale.

“We understand Africa, its challenges, its opportunities, and its potential. And we believe only Africans can truly transform Africa,” he said.

The group chief also hinted at plans to set up a polypropylene bagging plant to boost the industry in Ethiopia.

He expressed gratitude to financial institutions such as Afreximbank, Africa Finance Corporation, Access Bank, First Bank, Zenith Bank, and other indigenous banks for supporting the project.

Mustafa Omar, president of the Somali regional state, described Dangote as “the anchor investor Ethiopia has been looking for”, adding that the Nigerian billionaire is trusted and appreciated by Ethiopians and Africans.

Umaru Kwairanga, chairman of Nigerian Exchange Group (NGX), commended Ethiopia’s leadership for its economic reforms and expressed optimism about deepening economic ties between Nigeria and Ethiopia.

He described the fertiliser complex as a “gigantic project befitting of Aliko Dangote’s vision and execution capacity,” noting that the industrialist had consistently demonstrated a strong commitment to advancing Africa’s self-sufficiency and development.