Dangote signs US$2.5B deal for fertilizer plant in Ethiopia’s Somali region

ETHIOPIA – Dangote Industries has signed a US$2.5 billion agreement with the Ethiopian government to build a large-scale fertilizer plant in Gode, a city in the Somali Region.

The plant will focus on producing urea and nitrogen-based fertilizers to address Ethiopia’s long-standing fertilizer shortages and reduce its heavy reliance on imports from Morocco and Russia.

The planned facility comes at a critical moment. Ethiopia has faced repeated fertilizer shortages in recent years, and the problem has worsened in 2025.

According to the Ministry of Agriculture, only 40 percent of the fertilizer required for the current Meher planting season had arrived by April. Farmers in major agricultural zones like Amhara and Oromia have experienced delayed planting, rising prices, and in some areas, unrest over access to fertilizer.

Aliko Dangote, President and CEO of Dangote Group, announced the agreement in a LinkedIn post, describing the project as a serious commitment to solving Ethiopia’s agricultural supply problems.

“This project is not just an investment; it is a strong commitment to Ethiopia’s agricultural self-sufficiency and regional economic integration,” he wrote.

“Given the country’s supply challenges, including a high dependence on imports from Morocco and Russia, urgent action was needed.”

A timely response to a growing crisis

The Dangote plant is expected to reduce Ethiopia’s fertilizer shortfall, which has been projected to exceed 400,000 tonnes in 2025. It will also create thousands of jobs, strengthen food production, and increase trade across East Africa.

The project aligns with Ethiopia’s Homegrown Economic Reform II (HGER II) plan and its goal to decentralize industrial development. Gode’s location along the Ethiopia–Djibouti corridor gives the facility a clear transport advantage.

It will allow for smoother import of raw materials and open a route for fertilizer exports to neighboring markets.

Aliko Dangote expressed confidence in the location’s strategic value, saying, “The city of Gode, located on the strategic Ethiopia-Djibouti axis, will become a new industrial hub, in line with Prime Minister Abiy Ahmed’s vision and the ambitions of the Homegrown Economic Reform II (HGER II) program.”

A model based on past success

Dangote’s experience in Nigeria provides a strong background for the project. The company’s fertilizer operations in Nigeria already export to countries like Brazil and India. With that experience, Dangote aims to set up a reliable and efficient system in Ethiopia as well.

“At Dangote Industries, we believe in the continent’s potential,” Dangote said. “Following our success in the cement sector in Ethiopia, this new initiative marks a decisive step in our expansion in East Africa.”

The local production of fertilizers is expected to bring relief to farmers who have been priced out of the market due to inflated costs. Fertilizer prices in some regions have gone up by as much as 170 percent, with one quintal selling for ETB 10,000 (US$73) on the informal market.

Increased prices have forced many farmers to abandon land, switch to compost, or reduce planting. The new plant aims to fix this by ensuring more stable and affordable fertilizer supply within the country.

As Dangote summed it up, “Africa must feed Africa. Together, we will strengthen food security, create jobs, and build a prosperous future for generations to come.”

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