Dangote Group raises Ethiopia fertilizer plant cost to over US$4B
The revised budget reflects added infrastructure, including a gas pipeline, power plant, and fertilizer blending unit, as Ethiopia pushes to cut fertilizer imports.
ETHIOPIA – Dangote Group has raised the estimated cost of its fertilizer plant project in Ethiopia to more than US$4 billion, up from the earlier US$2.5 billion figure, as the company expands the scope of the development.
The company shared the update on May 17 during a visit to the construction site in Gode, southeast Ethiopia, attended by Nigerian businessman Aliko Dangote and Ethiopian Prime Minister Abiy Ahmed.
The fertilizer project forms part of Dangote Group’s wider focus on oil refining, petrochemicals, and fertilizer production across Africa. Ethiopia signed the original agreement with the group in August 2025 through Ethiopian Investment Holdings. Under the deal, Dangote Group holds a 60% stake while Ethiopian Investment Holdings owns 40%.
According to a statement shared on the conglomerate’s X account, “Aliko Dangote announced an increase in his investment, from US$2.5 billion to more than US$4 billion, reflecting the expansion of the project’s scope, which now includes a 110 km gas pipeline, a 120 MW power plant, a polypropylene packaging plant and an NPK fertilizer blending plant with a capacity of two million tons.”
Construction of the fertilizer plant started officially in October 2025. Once complete, the facility will produce three million tons of fertilizer each year.
Prime Minister Abiy Ahmed said the project will support Ethiopia’s agriculture sector and reduce the country’s dependence on imported fertilizer. He described the development as “a strategic initiative to boost agriculture, strengthen food security, and reduce dependence on imports.”
In another government statement, he added: “This initiative represents much more than just infrastructure. It is a strategic investment in agricultural transformation, food security, industrial growth, and Ethiopia’s economic self-reliance.”
The project also gained support earlier this year through a 25-year gas supply agreement signed between Dangote Group and Chinese company GCL Group. The gas will come from the Calub field in Ethiopia’s Ogaden Basin and move through a dedicated 110 km pipeline.
Ethiopia currently imports all its fertilizer needs. Data from the International Fertilizer Development Center shows the country bought about 2.32 million tons of fertilizer from global markets in 2024. Agriculture contributes about 35% of Ethiopia’s GDP.
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