Ghana partners Qatar’s Al Jedad Holdings for first-ever US$5B fertilizer plant in Atuabo

GHANA – Ghana’s Ministry of Food and Agriculture has entered into a partnership with Qatar’s Al Jedad Holdings and local agro-industrial firm Granum Limited in a landmark move to bolster its agricultural sector and reduce reliance on imported fertilizers.

Formalized on Wednesday, August 27,the agreement paves the way for the construction of a US$5 billion primary chemical fertilizer production plant at the Atuabo oil hub in the Western Region of Ghana. The facility, set to commence construction in October 2025, is expected to be operational within 32 months, with commissioning slated for mid-2028.

The plant will focus on the primary production of chemical fertilizers, specifically urea and ammonia, derived from raw materials such as natural gas and phosphate rock.

 “Concretely, what we will be producing in Ghana, at the Petroleum Hub site in Atuabo, is urea and ammonia. This will generate more than 2,000 direct jobs for Ghanaian youth,” stated Foster Mawuli Benson, founder of Granum Agro Limited, in an interview with MyJoyOnline.

While the exact production capacity of the facility remains undisclosed, the project is poised to transform Ghana’s agricultural landscape by enabling the country to produce its own fertilizers, a significant departure from its current reliance on imports.

Ghana is one of West Africa’s leading importers of fertilizers, alongside Nigeria and Ivory Coast.

According to a 2024 report by the International Fertilizer Development Center (IFDC), Ghana imported 554,239 tons of fertilizer in 2024, primarily consisting of NPK, urea, and triple superphosphate.

The country’s fertilizer industry has historically been limited to blending units that process imported bulk fertilizers into various formulations for distribution through a network of agri-food dealers. The IFDC report highlighted that Ghana lacks primary production capabilities, with all chemical fertilizers being imported in either compound or bulk form.

The Atuabo oil hub, strategically located in Ghana’s Western Region, is an ideal site for this industrial venture due to its proximity to natural gas resources, a key raw material for ammonia and urea production.

The hub is part of Ghana’s broader vision to develop a petroleum and industrial complex, leveraging its oil and gas reserves to drive economic growth. The fertilizer plant is expected to create synergies with existing infrastructure at Atuabo, enhancing the region’s role as a hub for energy and agro-industrial development.

In addition, this initiative aligns with Ghana’s strategic goal of achieving agricultural self-sufficiency and reducing its import bill. Fertilizer imports have been a significant expense for the country, with rising global prices exacerbating the cost.

By establishing domestic production, Ghana aims to stabilize fertilizer supply chains, lower costs for farmers, and enhance food security. The project also supports the government’s Planting for Food and Jobs program, which seeks to modernize agriculture and boost productivity.

Upon completion, the Atuabo plant will position Ghana among a select group of West African nations with primary fertilizer production capabilities, alongside Nigeria and Senegal. Nigeria, for instance, has established itself as a regional leader in fertilizer production through facilities like the Dangote Fertilizer Plant, which produces 3 million tons of urea annually.

Senegal also operates primary production facilities, leveraging its phosphate reserves. Ghana’s entry into this group is expected to enhance regional cooperation and reduce West Africa’s dependence on global fertilizer markets, which have faced disruptions due to geopolitical tensions and supply chain challenges in recent years.

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