In a bold expansion of industrial investment across East Africa, the Dangote Group recently announced a $3 billion agreement with the Ethiopian government to establish a large-scale fertilizer production plant in Gode, a city along the Ethiopia–Djibouti corridor. The initiative is designed to reduce Ethiopia’s dependency on fertilizer imports and strengthen the region’s agricultural supply systems. The planned facility in Gode, located in the Somali Regional State, will produce urea and nitrogen-based fertilizers aimed at serving Ethiopian farmers and neighboring markets. Ethiopia currently imports most of its fertilizer, largely from Morocco and Russia, making it vulnerable to global price shocks and supply chain disruptions. The new plant seeks to localize production, stabilizing supply while contributing to Ethiopia’s broader economic reform goals under the Homegrown Economic Reform II (HGER II) framework.
According to Dangote Group President and CEO Aliko Dangote, the investment is part of a long-term strategy to advance industrial development in Africa by addressing core challenges in food production and rural livelihoods. “Africa must feed itself,” Dangote stated during the announcement. “This project responds directly to urgent supply gaps while laying the groundwork for economic integration across East Africa.”
Ethiopia’s agricultural sector employs over 65% of the workforce and contributes nearly 35% to GDP. Yet limited access to inputs, particularly fertilizer, remains a major barrier to productivity. By increasing domestic fertilizer production, the Gode plant is expected to improve yields, reduce costs for farmers, and improve overall food system resilience.
The location of the facility is also strategic. Gode sits near the main transport route between Ethiopia and the Port of Djibouti, offering logistical advantages for both domestic distribution and regional exports. The plant is anticipated to create direct and indirect employment opportunities while boosting ancillary sectors including logistics, energy, and infrastructure.
The investment builds on Dangote’s existing presence in Ethiopia, where the company operates one of its largest cement factories. The expansion into fertilizer represents a shift toward integrated industrial development, targeting upstream challenges that impact food systems and economic stability.
International development institutions and trade observers have welcomed the move, noting its alignment with the African Union’s Comprehensive Africa Agriculture Development Programme (CAADP) and the UN’s Sustainable Development Goals. However, analysts also caution that successful implementation will require careful attention to environmental safeguards, labor practices, and the political dynamics of Ethiopia’s regions.
For Dangote Group, the fertilizer plant represents a larger continental strategy. With rising demand for agricultural inputs and a growing population, East Africa is increasingly seen as a key market for long-term growth. The Gode investment sends a signal that African industry can play a more active role in shaping the future of the continent’s food systems.
The facility is expected to begin construction in 2026, with initial production phases slated for 2028, pending environmental impact assessments and regulatory approvals.
