Ethiopia has reached a major agreement with Dangote Industries to establish a large-scale fertiliser plant in the Somali Regional State.
The $3 billion project aims to stabilise local supply chains and enhance agricultural productivity, which has been disrupted in recent years due to fertiliser shortages.
The proposed facility will produce urea and nitrogen-based fertilisers for both domestic use and export. It will be located near the Ethiopia-Djibouti logistics corridor, providing easier access to ports for both raw material imports and fertiliser exports.
This project aligns with Ethiopia’s goal of decentralising industrial activity and attracting investment to historically underserved regions.
Ethiopia has repeatedly faced challenges with fertiliser shortages, which have disrupted planting seasons and exposed vulnerabilities in its agricultural supply chains. These shortages have been worsened by foreign currency constraints, logistical delays, and geopolitical instability.
With only 40 percent of the required fertiliser for the 2025 planting season arriving by April, a domestic solution has become increasingly critical.
Last month, Dangote Group set a target to generate as much as $7 million in daily revenue from fertiliser exports, with plans to ramp up daily shipments to 16,000 tons over the next two years.
Dangote Fertiliser, the largest granulated urea fertiliser complex in Africa, already boasts an impressive annual production capacity of 3 million metric tons. The plant has played a vital role in reducing Nigeria’s reliance on imported fertilisers and supporting the country’s agricultural sector.
This expansion into Ethiopia is part of the company’s effort to solidify its presence in the African fertiliser market, ensuring supply stability and ensuring regional agricultural growth.
