Dangote Launches $2.5bn Plant to Harness Ethiopian Gas, Boost Regional Food Security

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Aliko Dangote, Africa's foremost industrialist, officially launched construction Thursday on a $2.5 billion urea fertiliser plant in Ethiopia's southeast Gode region—a groundbreaking ceremony that marks the start of a massive facility poised to produce three million metric tonnes annually, harnessing local gas reserves to revolutionise farming across the Horn of Africa.

The event, attended by Ethiopian Prime Minister Abiy Ahmed, underscores a landmark partnership between Dangote Group and Ethiopian Investment Holdings, blending Nigeria's manufacturing prowess with Ethiopia's energy bounty from the Hilal and Calub fields.

Ahmed framed the project as a beacon of "shared responsibility, cooperation, and peace," rallying citizens to unite behind it as a step toward global prominence. "By doing so, we elevate Ethiopia’s presence on the global stage in a way that honours our identity," he declared.

Dangote, whose empire has upended Nigeria's cement and refining landscapes, lauded Abiy's reforms for unlocking private investment in vital sectors. "This is the first time a private African investor partners with an African country on such a scale," he said, pledging expansions into ammonium nitrate, NPK, and calcium ammonium nitrate to position Ethiopia as a regional powerhouse within five years.

Backed by Afreximbank, Africa Finance Corporation, and Nigerian lenders like Access, First, and Zenith, the plant eyes not just output but ripple effects: slashing import costs, creating thousands of jobs, and curbing smuggling that drains farmer earnings.

This venture builds on Dangote's decade-old 2.5 million tonne Mugher cement plant, with $400 million more committed to double capacity.

Across Africa, the group's mantra—"only Africans can develop Africa"—drives self-reliance, turning import addicts into exporters of cement, fuel, and soon fertiliser.

The Gode site, in a gas-rich zone, could propel Ethiopia to continental ag leadership, easing soil nutrient shortages that hobble yields.

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