Dangote Urea Project Kicks Off
On 5 October 2025, the Dangote Group officially launched construction of its $2.5 billion fertilizer complex in Gode, in Ethiopia’s Somali Region, in partnership with Ethiopian Investment Holdings. Mr Aliko Dangote personally led the groundbreaking ceremony, marking a key milestone and the operational launch of one of Ethiopia’s largest industrial projects. The complex is designed to transform Ethiopia into a regional fertilizer hub, capable of supplying domestic demand, wider Africa, and global markets.
The Gode complex will be built over a three-year period with a projected annual urea capacity of 3 million tonnes, sufficient to meet national demand, currently at 1.2 million tonnes and projected to reach up to 1.53 million tonnes by 2028 and create an exportable surplus. The project will draw on local natural-gas feedstock from Calub fields delivered through 100+ km pipeline, and includes ammonia, storage, and power facilities. Furthermore, The Ogaden Liquefied Natural Gas (LNG) Project, located in Ethiopia’s Somali Region, is projected to produce 111 million litres annually in its first phase, with capacity expected to rise to 1.33 billion litres per year in the second phase.
Dangote Group will hold a 60 % equity stake, while the Ethiopian government, via its sovereign vehicle Ethiopian Investment Holdings, retains 40 %.
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The project underscores Ethiopia’s drive to cut fertilizer import dependency and curb forex outflows tied to annual procurement. If commissioning stays on schedule, by 2028 Ethiopia could transition from importer to regional nitrogen exporter, reshaping East Africa’s trade flows. For global suppliers, the tender window is narrowing as domestic capacity builds, signalling a medium-term shift toward localized sourcing and regional supply integration.]: An African Dream.
The other question now emerging is whether, with the planned ammonia production capacity, Dangote’s ambitions could extend to phosphatic fertilizer manufacturing in Ethiopia, broadening the project’s scope beyond nitrogen and positioning the country for full nutrient self-sufficiency.
AFRIQOM Market Reporter
