Africa's richest man breaks ground on $2.5 billion fertiliser plant in Ethiopia

Nigerian billionaire Aliko Dangote has started construction on a $2.5 billion fertiliser plant in Ethiopia, setting the stage for one of the continent’s most ambitious industrial projects. The project, launched in partnership with Ethiopian Investment Holdings (EIH), aims to produce three million metric tonnes of urea annually—turning Ethiopia’s natural gas reserves into a catalyst for agricultural transformation.

The plant, sited in the south-eastern city of Gode, is more than a business deal for Dangote. It is, he says, a statement of faith in Africa’s capacity to industrialise and feed itself. Ethiopian Prime Minister Abiy Ahmed hailed the investment as a symbol of unity, peace, and shared progress, underscoring Addis Ababa’s determination to position itself as a regional agricultural powerhouse.

Ethiopia’s bid to become a fertiliser hub

Prime Minister Abiy called the venture “a project that elevates Ethiopia’s presence on the global stage,” emphasising the government’s vision of harnessing natural resources to drive industrial development. “They embody our shared responsibility to harness opportunities, strengthen cooperation, and promote peace,” Abiy told dignitaries at the groundbreaking ceremony.

Dangote praised Ethiopia’s reform drive, citing economic liberalisation, infrastructure upgrades, and projects like the Grand Ethiopian Renaissance Dam as evidence of the country’s readiness for industrial take-off. He predicted that within five years, Ethiopia could become Africa’s leading agricultural nation, with the new fertiliser plant as a linchpin.

A bigger bet on African self-sufficiency

The Ethiopian complex is Dangote Group’s second major investment in the country, complementing its decade-old cement plant in Mugher. The Group has committed an additional $400 million to expand that operation, part of a broader strategy to reduce Africa’s dependence on imports by building homegrown manufacturing capabilities.

“This partnership represents a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent,” Dangote said. He stressed that the project marks the first time a private African investor has partnered with an African government on an industrial complex of this scale.

Dangote hinted at plans to add facilities for other fertilisers—such as ammonium nitrate and NPK—and to set up a polypropylene bagging plant, signalling his intent to deepen the supply chain.

The face of Africa’s industrial push

Somali Region President Mustafa Omar hailed Dangote as “the anchor investor Ethiopia has been looking for,” while Nigerian Exchange Group chairman Umaru Kwairanga described the project as a “gigantic step befitting Dangote’s vision and execution capacity.”

For Dangote, the move is part of a decades-long mission to show that “only Africans can develop Africa.” His conglomerate has already turned Nigeria into a net exporter of cement and fertiliser, and its 650,000-barrel-per-day refinery in Lagos has transformed the country’s energy landscape.

Backed by institutions including Afreximbank and Africa Finance Corporation, the Ethiopian fertiliser complex positions the Dangote Group as a key force in reshaping Africa’s industrial economy. As Dangote put it at the ceremony: “We understand Africa, its challenges, its opportunities, and its potential. And we believe only Africans can truly transform Africa.”