Ethiopia has begun its journey toward agricultural self-sufficiency by signing a landmark $2.5 billion agreement with Nigerian billionaire Aliko Dangote to build a large-scale fertilizer plant.
Announced by Prime Minister Abiy Ahmed, the project aims to position Ethiopia as a global leader in urea production and reduce its dependency on fertilizer imports.
Set in Gode town in Ethiopia’s southeastern Somali State, the fertilizer complex is expected to produce three million metric tons of urea annually.
This initiative is the largest industrial investment in Ethiopian history and promises to reshape the nation’s agricultural landscape.
What are the key features of Ethiopia’s fertilizer plant project?
The facility will be equipped to produce up to three million metric tons of fertilizer annually, with construction planned to be completed within 40 months.
A dedicated pipeline will supply natural gas from local fields to fuel production, and the plant is designed with potential expansions into ammonia-based fertilizers.
Ownership is split, with Dangote Group holding 60% and Ethiopia’s state-owned Ethiopian Investment Holdings controlling 40%, ensuring significant local participation.
Did you know?
Ethiopia currently imports over 90% of its fertilizer, spending nearly $1 billion annually before this project.
How will the fertilizer plant impact Ethiopia’s agricultural economy?
Agriculture employs over 70% of Ethiopia’s population but has been constrained by inadequate fertilizer supply and high import costs, which currently total nearly $1 billion a year.
The plant will cover domestic needs and create surplus capacity for export to neighboring countries such as Kenya, Somalia, and Djibouti.
Prime Minister Abiy Ahmed emphasized the plant’s role in job creation, reliable fertilizer provision, and advancing Ethiopia’s quest for food sovereignty.
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What role does the Dangote Group play in this landmark partnership?
Dangote Group brings deep expertise, operating Africa’s largest fertilizer complex in Nigeria, producing three million tons annually. The Ethiopian project mirrors this success, as Dangote aims to help Africa achieve fertilizer self-sufficiency within 40 months through strategic expansion.
Aliko Dangote described the partnership as pivotal for continental industrialization and food security, highlighting the importance of strong Ethiopian involvement in the venture.
How does this project advance Africa’s food security goals?
The fertilizer plant aligns with Ethiopia’s Homegrown Economic Reform II and the African Union’s agenda under the African Continental Free Trade Area.
It represents a major step toward reducing reliance on volatile global fertilizer markets and enhancing regional food security.
This investment marks the beginning of a new phase in changing agriculture in Ethiopia through industrialization, and it serves as a model for similar projects in Africa, which could lead to more productivity, economic growth, and food
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