In a bold move to reshape Africa’s agricultural future, Africa’s foremost industrialist and President of Dangote Group, Aliko Dangote, has announced a landmark $3 billion strategic agreement with the Ethiopian government to build a world-class fertilizer production plant in the city of Gode, in Ethiopia’s Somali region.
Describing the deal as more than just a business transaction, Dangote emphasized that the project represents a profound commitment to Ethiopia’s agricultural self-sufficiency and broader regional economic integration. With Ethiopia currently grappling with significant supply chain disruptions and an over-reliance on fertilizer imports from Morocco and Russia, the urgency to localize production has never been greater.
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“This project is not just an investment, it’s a commitment to a stronger, more self-reliant Ethiopia and a more connected East Africa,” Dangote stated. “Our goal is to locally produce urea and nitrogen-based fertilizers to meet the needs of Ethiopian farmers and catalyze agricultural development throughout the region.”
The $3 billion facility will be strategically located in Gode, a city along the vital Ethiopia-Djibouti corridor, which serves as a key transit route for imports and exports. This positioning aligns with Ethiopia’s national economic vision, as outlined in Prime Minister Abiy Ahmed’s ambitious Homegrown Economic Reform II (HGER II) program.
The fertilizer plant is expected to serve as a major industrial catalyst for the region, creating thousands of direct and indirect jobs, boosting agribusiness productivity, and enhancing food security in a region frequently affected by drought, famine, and economic volatility.
This venture builds upon Dangote Group’s successful footprint in Ethiopia, where the conglomerate has previously made significant inroads in the cement sector. The new investment not only reflects confidence in Ethiopia’s long-term potential but also reinforces Dangote’s vision of pan-African industrialization.
“At Dangote Industries, we believe in Africa’s immense potential. This is a decisive step in our East African expansion strategy, but more importantly, it’s a step toward making the continent self-reliant in critical sectors,” Dangote said.
With construction expected to begin soon, the plant is projected to drastically reduce Ethiopia’s fertilizer import bill, while supporting farmers with affordable, accessible inputs. The benefits, however, will likely spill beyond Ethiopia’s borders, stimulating trade, improving regional supply chains, and contributing to the African Union’s broader goal of agricultural transformation across the continent.
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“Africa must feed Africa,” Dangote concluded. “This initiative is about strengthening food security, creating meaningful employment, and building a more prosperous future for generations to come. Together, we will unlock the full potential of our continent.”
The announcement has been met with widespread optimism across the African development and agribusiness communities, with many hailing it as a game-changing move that could redefine the dynamics of food production and supply in East Africa.
