Fertilizer Plants in Ethiopia: Building Self-Sufficiency From the Ground Up
We will cover Ethiopia’s move from a country with no domestic inorganic fertilizer production to one building one of Africa’s largest new urea complexes.
An agrarian economy built on cereals
Cereals account for roughly 81% of Ethiopia’s cultivated area and around 88% of output volume, with crop production contributing close to 28% of GDP. Teff, wheat, maize, sorghum and barley are the country’s principal grain crops, grown almost entirely under rainfed conditions, while coffee and sesame are the leading export cash crops. In November 2025, the Ethiopian government announced it had reached self-sufficiency in wheat production for the first time, attributing the shift primarily to expanded irrigation rather than fertilizer supply, a reminder that fertilizer availability is one input among several driving Ethiopia’s agricultural push, not the only one.
Starting from zero on domestic production
Until recently, Ethiopia had no primary production of inorganic fertilizer at all; DAP and urea were imported in full. Between 2014 and 2016, five blending plants were installed at farmer cooperative unions across four regions, with OCP Group’s involvement helping at least two of them come online. These plants blend boron, zinc and sulphur into imported DAP and NP compounds to tailor nutrient mixes to local soil conditions — a meaningful step, but one still entirely dependent on imported base fertilizer.
That’s the backdrop for Dangote Group’s newer commitment: a fertiliser complex originally budgeted at $2.5B and since raised to more than $4B, designed to produce roughly 3 million tonnes of urea annually. Ethiopia’s Prime Minister has described the project as central to reducing the country’s fertilizer import dependence.
| Period | Domestic production | Nutrient sourcing |
|---|---|---|
| Before 2014 | None | 100% imported DAP and urea |
| 2014–2016 onward | 5 blending plants (cooperative-run, 2 with OCP involvement) | Blending only — boron/zinc/sulphur added to imported DAP and NP |
| Once the Dangote complex is operational | ~3 Mt/yr urea (primary nitrogen production) | First domestic nitrogen source at scale; phosphate inputs still likely imported |
The gap that table points to: Ethiopia is about to have domestic urea for the first time, but its existing blending infrastructure was built around augmenting imported DAP/NP, not processing large volumes of locally-produced urea into finished NPK. Closing that gap — turning new urea supply into blended product farmers can use — is a separate build-out from the ammonia/urea plant itself.
Where equipment decisions come in
That gap is largely a granulation and blending capacity question. Cooperative-scale blending plants built to add micronutrients to imported product are typically not sized for the throughput a 3 Mt/yr urea complex could eventually feed into domestic NPK production. Rotary drum granulation and associated drying equipment is the standard route for converting straight urea and phosphate inputs into durable, storable NPK granules at that kind of scale. This is written from public reporting on Ethiopia’s fertilizer sector rather than direct knowledge of what blending capacity is planned alongside the Dangote complex, it’s offered as the general shape of the problem a project like this tends to create, not a claim about a specific facility.
Dangote's Gode Fertilizer Complex: Ethiopia's $4 Billion Bet on Domestic Urea
The project
In August 2025, Dangote Group and Ethiopian Investment Holdings (EIH), the government’s strategic investment arm, signed a shareholders’ agreement to develop and operate a urea complex in Gode, in the Somali Regional State. EIH holds 40% and Dangote 60%. The complex is planned to produce three million tonnes of urea a year, which would make it one of the five largest urea complexes in the world and the largest single industrial project in Ethiopia’s history.
From $2.5 billion to over $4 billion
The project was announced at $2.5 billion. In May 2026, during a site visit with Prime Minister Abiy Ahmed, Dangote raised the planned investment to more than $4 billion. The larger budget covers an expanded scope: a 110 km gas pipeline, a 120 MW power plant, a polypropylene packaging facility and a two-million-tonne NPK blending plant. Gode is therefore planned as an integrated site that would supply its own power, produce urea, blend NPK and bag the finished product. Dangote has called Ethiopia the group’s second-largest investment destination after Nigeria.
Feedstock and engineering
The plant will run on natural gas from Ethiopia’s Hilal and Calub reserves, delivered through a dedicated pipeline to Gode. In March 2026, Dangote signed a 25-year gas supply agreement with China’s GCL Group, valued at about $4.2 billion. For engineering, Dangote appointed four global EPC firms in November 2025 to work on its Nigerian expansion and the new Ethiopian plants. Saipem’s role covers four units in Nigeria and two in Ethiopia.
Timeline
Construction officially began in October 2025 and was scheduled to finish within 40 months, which points to first production around early 2029. After the May 2026 site visit, Abiy said construction was advancing as planned across multiple sections of the site. He also said progress had prompted efforts to finish ahead of the original 40-month schedule.
Why it matters for Ethiopia
Ethiopia currently has no primary production of inorganic fertilizer. In 2024 it imported close to 1.97 million tonnes, more than any other African country. Urea and DAP imports cost an average of about $1.8 billion a year, more than any other import category except petroleum products. A plant designed to produce 3 million tonnes of urea a year would exceed the country’s entire current fertilizer import volume, so Gode could serve both domestic demand and regional export markets.
Frequently Asked Questions
What is the Dangote fertilizer plant in Ethiopia?
It is a urea fertilizer complex being built in Gode, in Ethiopia’s Somali Regional State, by Dangote Group and Ethiopian Investment Holdings (EIH), the government’s strategic investment arm. It is designed to produce three million tonnes of urea a year, making it one of the five largest urea complexes in the world and the largest industrial project in Ethiopia’s history.
Who owns the Gode fertilizer complex?
Dangote Group holds 60% and Ethiopian Investment Holdings holds 40%. The two partners signed their shareholders’ agreement in August 2025.
How much will the Dangote Ethiopia plant cost?
The project was announced at $2.5 billion. In May 2026, Dangote raised the planned investment to more than $4 billion to cover an expanded scope, including a 110 km gas pipeline, a 120 MW power plant, a polypropylene packaging facility and a two-million-tonne NPK blending plant.
When will the Gode fertilizer plant start production?
Construction began in October 2025 with a 40-month schedule, which points to first production around early 2029. In May 2026, Prime Minister Abiy Ahmed said progress had prompted efforts to finish ahead of that timeline.
Where will the plant get its natural gas?
The complex will use natural gas from Ethiopia’s Hilal and Calub reserves, delivered to Gode through a dedicated pipeline. In March 2026, Dangote signed a 25-year gas supply agreement with China’s GCL Group, valued at about $4.2 billion.
Who is building the plant?
In November 2025, Dangote appointed four global engineering, procurement and construction (EPC) firms for its fertilizer expansion. Italy’s Saipem is working on two units in Ethiopia as well as four units in Nigeria.