Aliko Dangote to build $3B fertiliser plant in Ethiopia’s Gode to tackle shortages, boost food security, and drive East Africa’s growth.
Africa’s richest man, Aliko Dangote, has announced plans to build a $3 billion fertiliser plant in Gode, Somali Regional State, Ethiopia. The move is a major step in Dangote Group’s African expansion and a bold response to the country’s ongoing fertiliser crisis.
“This project is not just an investment; it’s a commitment to Ethiopia’s food security and economic independence,” Dangote said on LinkedIn.
Ethiopia depends on imports for more than 90% of its fertiliser, mainly sourced from Morocco and Russia. In 2025 alone, a shortage of over 400,000 tonnes of diammonium phosphate (DAP) disrupted the country’s vital Meher planting season.
The crisis—driven by foreign currency shortages and logistics delays—has caused rising food prices and threatened crop yields across the Horn of Africa.
Gode, located on the key Ethiopia–Djibouti trade corridor, offers strategic access to the Port of Djibouti. This makes it ideal for importing raw materials and distributing fertiliser across Ethiopia and into neighbouring markets like Kenya, Somalia, and South Sudan.
“This investment supports Prime Minister Abiy Ahmed’s economic vision and complements the country’s Homegrown Economic Reform II,” said Dangote.
The project aligns with Ethiopia’s efforts to decentralise industry and promote regional development outside Addis Ababa.
The country’s reform agenda, including Homegrown Economic Reform II, has made Ethiopia more attractive to investors. Foreign direct investment (FDI) rose by 21.9% in 2024, reaching $3.27 billion, up from $2.68 billion the year before, according to UNCTAD.
The government is actively supporting strategic investments in agriculture, logistics, and manufacturing—exactly where Dangote’s project fits in.
The Gode project builds on the success of Dangote’s granulated urea plant in Nigeria—the largest in Africa. That facility produces more than 3 million tonnes annually and exports to markets like the United States, India, and Brazil.
Dangote recently revealed that his Nigerian fertiliser venture earns $7 million daily, highlighting the strong global demand.
By expanding into Ethiopia, Dangote aims to localise production and cut dependence on volatile global supply chains.
Outlook: A Boost for East African Food Security
Construction of the Gode plant is expected to begin soon, following the recent signing of a memorandum of understanding. The project is poised to create thousands of jobs, upgrade infrastructure, and strengthen Ethiopia’s position as an agricultural powerhouse.
If successful, it could reshape East Africa’s fertiliser supply chain and serve as a model for private sector-driven food security across the continent.