NAIROBI, Kenya — Nigerian billionaire Aliko Dangote has increased planned investment in a major fertiliser plant in Ethiopia to more than $4 billion (about Sh517 billion), up from the $2.5 billion announced last year.
The expansion marks one of the largest industrial investments currently underway in East Africa and strengthens Dangote’s push to reduce Africa’s dependence on imported fertiliser.
In a statement shared on its X account on Sunday, Dangote Group said Dangote had visited the project site together with Ethiopian Prime Minister Abiy Ahmed to assess ongoing construction works.
The planned urea fertiliser plant is expected to produce three million metric tons annually once completed.
Expanded Scope of Project
Dangote Group said the project had significantly expanded beyond its original design.
The revised investment now includes construction of a 110-kilometre pipeline, a 120-megawatt power plant, a polypropylene packaging facility, and a two-million-ton NPK blending plant.
NPK fertiliser contains nitrogen, phosphorus, and potassium, which are key nutrients used to improve agricultural productivity.
The company said the additional infrastructure would support large-scale fertiliser production while strengthening Ethiopia’s industrial and energy capacity.
The investment is part of Dangote’s broader strategy to establish Africa as a major producer of fertiliser and reduce reliance on imports from Europe, the Middle East, and Asia.
Ethiopia’s Industrial Ambitions
Under the original agreement signed between Ethiopian Investment Holdings and Dangote Group, Ethiopia will hold a 40 pc stake in the project while Dangote Group will own the remaining 60 pc.
The fertiliser plant is expected to support Ethiopia’s agricultural sector, which remains central to the country’s economy and employment.
The investment comes as Ethiopia continues to position itself as a regional manufacturing and industrial hub despite ongoing economic and political pressures.
Africa’s Fertiliser Push
Africa imports a large share of its fertiliser requirements, exposing many countries to global price shocks and supply chain disruptions.
Dangote has increasingly positioned himself at the centre of efforts to build local industrial capacity across the continent through investments in cement, oil refining, petrochemicals, and fertiliser production.
The Ethiopian project follows the launch of the massive Dangote Fertiliser Plant in Nigeria, which has already become one of Africa’s largest fertiliser facilities.
