President and Chief Executive of the Dangote Group, Aliko Dangote, has led the groundbreaking for a $2.5 billion fertilizer factory in Gode, Ethiopia.
According to a Dangote Group statement issued on Sunday, the project, a collaboration between the Dangote Group and Ethiopian Investment Holdings, will have an annual production capacity of three million metric tons of urea and is set to become one of the world’s largest fertilizer complexes.
Located in Ethiopia’s southeast area, it is expected to use the country’s rich natural gas resources from the Hilal and Calub reservoirs to increase agricultural production, create jobs, and improve food security around the Horn of Africa.
During the occasion, Prime Minister Abiy Ahmed was believed to have hailed the fertilizer project as more than just an industrial achievement, emphasizing that it represents shared responsibility, cooperation, and peace.
PM Abiy stated that the project illustrates Ethiopia’s dedication to seizing opportunities and enhancing its global profile.
“They embody our shared responsibility to harness opportunities, strengthen cooperation, and promote peace. Hence, I call upon all Ethiopians to continue mobilizing in unity for progress.
“By doing so, we elevate Ethiopia’s presence on the global stage in a way that honors the true spirit of our Ethiopian identity,” the PM said.
Dangote praised Ethiopia’s prime minister and cabinet for reforms and economic liberalization that have opened critical sectors to private investment and established Ethiopia as one of Africa’s most appealing locations for global investors.
He praised the government’s investment in infrastructure, including transportation, energy, and the Grand Ethiopian Renaissance Dam, which he regarded as the foundation for the country’s industrialization.
“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent.
“We are committed to bringing our decades of experience in large-scale industrial projects to ensure this venture becomes a cornerstone of Ethiopia’s industrial transformation,” Dangote said.
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Ethiopia aims to become a regional hub for fertilizer production, with plans to expand beyond the Gode project to include ammonium nitrate, ammonium sulfate, NPK, and calcium ammonium nitrate.
He forecasted that within five years, Ethiopia could become Africa’s leading agricultural nation.
“This investment is Dangote Group’s second major project in Ethiopia. Its cement subsidiary has operated a 2.5 Mtpa plant in Mugher for more than a decade, with an additional $400m committed to doubling its capacity.
“Across Africa, the group’s strategy is guided by the belief that only Africans can develop Africa, with a focus on manufacturing to reduce dependence on imports,” the statement said.
Dangote emphasized the group’s role in transforming Nigeria into a net exporter of petroleum products, cement, and fertilizer through its refinery, cement plants, and fertilizer expansion, “which is set to become the largest in the world at nine million metric tons per annum.“
“These investments have already changed Nigeria’s story. We’ve moved from being import-dependent to becoming self-sufficient and even exporters of cement, fertilizer, and petroleum products. We are ready and happy to work with more African countries to drive their industrialization plans and aspirations.
“The Gode project is a new dawn. This project marks the first time a private African investor is partnering with an African country to build such an industrial complex. We understand Africa, its challenges, its opportunities, and its potential. And we believe only Africans can truly transform Africa,” he said.
He hinted at establishing a polypropylene bagging plant to boost the Ethiopian sector.
Dangote thanked financial institutions, including Afreximbank, Africa Finance Corporation, Access Bank, First Bank, Zenith Bank, and other indigenous banks, for their support for the initiative.
Meanwhile, Mustafa Omar, president of the Somali Region, reportedly referred to Dangote as “the anchor investor Ethiopia has been looking for.”
He stated that Dangote is not just a reliable investor but also one who is well regarded by Ethiopians and Africans in general.
Dr. Umaru Kwairanga, Chairman of the Nigerian Exchange Group, complimented Ethiopia’s government for its economic progress and expressed optimism for improved commercial cooperation between the two countries.
