• Dangote Group to build urea and nitrogen fertilizer plant in Somali region.
• Ethiopia aims to reduce fertilizer imports and boost local production.
• Construction to take 40 months, with $3 billion investment expected.

Ethiopia has approved a deal with Nigerian billionaire Aliko Dangote to build a major fertilizer plant, aiming to slash the country’s dependence on imports and meet soaring agricultural demand. Prime Minister Abiy Ahmed announced the agreement on July 3.

The new plant will rise in Ethiopia’s Somali region and produce urea and nitrogen-based fertilizers for both local farmers and export markets, according to the Ethiopian News Agency (ENA).

Although officials have not confirmed the plant’s production capacity, local media estimate the project will cost around $3 billion. Construction is set to start soon and will take roughly 40 months to complete.

Ethiopia is Africa’s top fertilizer importer, but the government wants to change that. The country’s fertilizer consumption surged by an average of 10.76% annually between 2017 and 2023, reaching 1.7 million tons last year. Urea alone made up 765,000 tons, or 45% of the total, according to the International Fertilizer Development Center (IFDC).

This project marks a major step for Ethiopia to secure its fertilizer needs domestically while offering Dangote’s conglomerate an opportunity to expand its fertilizer business beyond Nigeria and tap into a growing market.

This article was initially published in French by Stéphanas Assocle

Edited in English by Ange Jason Quenum