African industrial giant, Dangote Group, has increased its planned investment in a major fertiliser project in Ethiopia to more than $4 billion. This comes as billionaire businessman Aliko Dangote deepens his expansion across Africa’s agricultural and industrial sectors.
The investment, which was previously estimated at $2.5 billion, will support the construction of a large fertiliser complex in Gode, located in Ethiopia’s Somali region. The project is expected to produce about 3 million metric tonnes of fertiliser annually once completed.
Dangote disclosed the revised investment figure during a visit to the project site alongside Ethiopian Prime Minister Abiy Ahmed. According to the company, the expanded spending now includes additional infrastructure such as a 110 kilometre gas pipeline, a 120 megawatt power plant, a polypropylene packaging facility and a 2 million tonne NPK blending plant.
The fertiliser project is expected to become one of the largest industrial investments in Ethiopia and forms part of Dangote’s broader push to expand manufacturing and industrial production across Africa.
Dangote said the project is aimed at improving food security and reducing Africa’s dependence on imported fertilisers, which have become increasingly expensive due to global supply disruptions and geopolitical instability.
“Africa has the capacity to feed itself and even export to the rest of the world,” Dangote said during the visit, according to company statements.
Ethiopia currently imports most of its fertiliser needs despite having one of Africa’s largest agricultural sectors. Officials believe local production could significantly reduce import costs, improve supply stability and support millions of farmers across the country.
The project has also received a major energy boost following a long term gas supply agreement between Dangote Group and China’s GCL Group. The deal will supply natural gas from Ethiopia’s Calub field to the fertiliser complex through a dedicated pipeline network.
The fertiliser plant is expected to begin operations around 2029 and could eventually position Ethiopia as a major fertiliser production hub for East Africa and neighboring markets.
Dangote said Ethiopia has now become the second largest recipient of the group’s investments in Africa, accounting for nearly 9 percent of its continental investment portfolio through 2030.
The expansion highlights growing efforts by African industrial groups to build regional manufacturing capacity in sectors such as fertiliser, energy and agriculture as governments push to reduce import dependence and strengthen economic self sufficiency.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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