Aliko Dangote is expanding his investment footprint in Ethiopia with a major fertilizer production project that authorities say could transform the country’s agricultural sector and strengthen food security across the Horn of Africa.
During a recent visit to Ethiopia, Dangote held discussions with Prime Minister Abiy Ahmed as both sides reaffirmed their commitment to a multi-billion-dollar fertilizer plant planned for Gode in Ethiopia’s Somali region.
The project, initially valued at 2.5 billion dollars, is expected to produce about three million metric tonnes of urea fertilizer annually. Ethiopian officials believe the plant will significantly reduce the country’s dependence on imported fertilizer and help stabilize agricultural production in a nation where farming remains the backbone of the economy.
Prime Minister Abiy Ahmed described food security as a strategic national priority and said the partnership with the Dangote Group represents a long-term investment in Ethiopia’s economic transformation.
According to the Ethiopian government, the fertilizer project aligns with broader efforts to modernize agriculture, improve crop yields and protect the country from recurring food shortages driven by climate shocks, global supply disruptions and rising import costs.
Abiy also praised Dangote’s track record in industrial development, saying Ethiopia is interested in expanding cooperation with the Nigerian business conglomerate into other sectors of the economy.
The Dangote Group later announced that its total investment commitment in Ethiopia has now exceeded four billion dollars following the expansion of supporting infrastructure linked to the fertilizer plant.
The wider investment package includes the construction of a 110-kilometre gas pipeline, a 120-megawatt power plant, a polypropylene packaging facility and a two-million-tonne NPK fertilizer blending plant designed to support large-scale agricultural production.
Dangote said Ethiopia has become the second-largest destination for the group’s investments in Africa, reflecting confidence in the country’s economic potential and industrial growth strategy.
Analysts say the project could reshape fertilizer supply chains across East Africa by reducing reliance on imports and lowering transportation costs for neighbouring countries that currently depend heavily on overseas suppliers.
The fertilizer plant is also expected to create thousands of direct and indirect jobs during both construction and operation, while stimulating related sectors such as transport, logistics, energy and manufacturing.
Agriculture remains one of Ethiopia’s most important economic sectors, employing a large percentage of the population. However, limited access to affordable fertilizer and modern farming inputs has long affected productivity and food output.
Experts believe the Dangote-backed project could help improve fertilizer availability for local farmers, increase harvest yields and strengthen regional food resilience at a time when several African countries are grappling with inflation, drought and food insecurity.
The partnership also highlights growing economic ties between African governments and private sector investors seeking to boost industrialization and reduce the continent’s dependence on imported agricultural products.
