Dangote raises Ethiopia fertilizer plant investment to $4B+ as scope expands

Dangote Group has increased its total investment commitment in an Ethiopian urea fertilizer complex to more than $4 billion, nearly doubling the initial $2.5 billion announced last year, after expanding the project’s scope to include a 110-kilometre natural gas pipeline, a 120-megawatt power plant, a polypropylene packaging facility, and a two-million-tonne NPK blending plant.

Aliko Dangote made the announcement following a visit to the project site in Gode, in Ethiopia’s Somali region, alongside Prime Minister Abiy Ahmed. Construction began in October 2025 after a shareholders’ agreement was signed in August of that year. Dangote Group holds a 60% stake; Ethiopian Investment Holdings controls the remaining 40%.

At full capacity, the complex will produce three million tonnes of urea per year — placing it among the world’s largest single-site urea facilities. Dangote has described Ethiopia as the group’s second-largest investment destination after Nigeria. The project secured a $4.2 billion, 25-year natural gas supply agreement with China’s GCL Group in March 2026 to guarantee uninterrupted feedstock.

Prime Minister Abiy said progress at the site has prompted efforts to complete the facility ahead of the original 40-month timeline. “Once completed, the fertilizer plant will play a vital role in strengthening local production capacity, reducing dependence on imports, supporting millions of farmers, and creating new opportunities for jobs and investment,” Abiy said.

Sub-Saharan Africa remains one of the world’s most import-dependent regions for fertilizer. Domestic large-scale urea production at competitive cost could reshape regional pricing — particularly for East Africa, where nitrogen fertilizer access is a persistent constraint on smallholder yields.

Source: Reuters