Dangote increases investment in Ethiopia's 3million ton fertilizer plant to $4 billion, including new power and pipeline projects

Ethiopian Prime Minister Abiy Ahmed says the country’s partnership with the Dangote Group is making steady progress on a landmark fertilizer plant in Gode, designed to significantly boost agricultural output and reduce dependence on imports.

• Ethiopia is partnering with Dangote Group on a major fertilizer plant in Gode to boost agricultural output and reduce import dependence.
• The project will produce 3 million metric tons of urea annually and represents one of Ethiopia’s largest industrial agricultural investments.
• Construction progress is steady, with notable investments such as a 110-kilometre pipeline, a 120-megawatt power plant, and expanded facilities, raising total investment from $2.5 billion to over $4 billion.
• The project is expected to support millions of Ethiopian farmers, enhance local fertilizer production, and improve food security and economic self-reliance.

The project, developed in partnership with Aliko Dangote, includes a planned annual production capacity of 3 million metric tons of urea and is positioned as one of the largest industrial investments in Ethiopia’s agricultural value chain.

Dangote recently visited Gode, where he was received by Prime Minister Abiy Ahmed as both leaders toured the proposed fertilizer plant site to assess ongoing construction progress.

Prime Minister Abiy Ahmed said in a post on X that he visited the project site alongside Dangote to evaluate developments at the facility.

“This morning, together with Aliko Dangote, I visited the project site in Gode to assess the progress achieved so far,” Abiy wrote.

“I am encouraged by the steady momentum across the project area. Construction activities are advancing as planned across multiple sections of the site, reflecting the strong commitment and collaboration driving this important national project forward,” he added.

According to Abiy, a shareholders’ agreement for the project was signed in August last year, while construction officially commenced in October 2025. He added that work is progressing steadily across several sections of the site.

Dangote Group also disclosed that the total investment commitment for the project has increased from $2.5 billion to more than $4 billion, reflecting an expanded scope of infrastructure tied to the development.

The expanded investment includes a 110-kilometre pipeline, a 120-megawatt power plant, a polypropylene packaging facility, and a two-million-tonne NPK blending plant.

The fertilizer project is expected to play a major role in strengthening Ethiopia’s domestic fertilizer production capacity, supporting millions of farmers, and reducing the country’s reliance on imported fertilizer products, which have historically placed pressure on agricultural productivity and foreign exchange reserves.

Gode project seen as industrial anchor for Ethiopia’s agriculture drive

During the site visit to Gode alongside Dangote, Abiy said construction momentum reflects strong coordination between the Ethiopian government and private sector partners.

"This initiative represents far more than infrastructure. It is a strategic investment in Ethiopia’s agricultural transformation, food security, industrial growth, and economic self-reliance."

"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 noted.

The Gode facility is part of Ethiopia’s broader push to industrialise its agricultural sector by localising input production and expanding agro-industrial infrastructure in key regions.

Once completed, the plant is expected to support long-term efforts to stabilise fertiliser supply chains, improve crop yields, and strengthen food security in a country where agriculture remains central to employment and GDP.

The involvement of the Dangote Group also highlights its expanding footprint in Africa’s industrial and fertiliser sectors, where it is increasingly positioning itself as a major supplier of agricultural inputs across the continent.

With construction advancing, the Gode project is emerging as one of Ethiopia’s flagship industrial investments, closely tied to its long-term ambitions for economic self-reliance and agricultural transformation.