Dangote Industries has signed a $3 billion agreement with Ethiopia to build a fertiliser factory in the Somali Regional State to help solve the country’s long-standing fertiliser shortage and support farmers across the region.
This investment will lead to the creation of a nitrogen and urea-based fertiliser plant, which will serve both local farmers and international markets.
The factory will be built close to the Ethiopia–Djibouti logistics corridor, making importing raw materials and exporting fertiliser through nearby ports easier.
Ethiopia has struggled with fertiliser shortages for years, affecting planting seasons and threatening food production.
In 2025, only 40 per cent of the fertiliser needed for the planting season had arrived by April. Problems such as foreign currency shortages, logistical delays, and geopolitical instability have worsened the situation.
Dangote’s new plant is expected to make fertiliser more accessible to farmers, especially in underserved regions, which will in turn help stabilise supply chains and improve food security.
The project also aligns with Ethiopia’s long-term goal of decentralising industrial development and bringing investment to rural areas, such as the Somali Regional State.
The move is part of Dangote Fertiliser’s strategy to grow its African presence.
The company already operates the largest granulated urea fertiliser plant on the continent, based in Nigeria, with an annual production capacity of 3 million metric tons.
In Nigeria, Dangote’s fertiliser plant has helped reduce the country’s dependence on imported fertiliser and supported local agriculture. Now, the company plans to do the same in Ethiopia.
Last month, Dangote Group announced its plan to generate $7 million daily from fertiliser exports. The company is also looking to increase shipments to 16,000 tons per day over the next two years.
With this new facility, Ethiopia is expected to become a major hub for fertiliser production in East Africa.
The plant will support farmers, create jobs, and boost export potential, strengthening agricultural systems and regional food supply.
The Ethiopian government sees this as a win for both local development and national food security.
The factory will not only meet the needs of Ethiopian farmers but also export fertiliser to neighbouring countries, creating stronger trade ties across East Africa.
