Ethiopia is poised to save billions of dollars annually and transform its agricultural sector with the construction of a massive $2.5 billion fertiliser manufacturing plant, a project born from an agreement between Ethiopian Investment Holding (EIH) and the Dangote Group.
The FDRE Finance Minister Ahmed Shide announced that the initiative will eliminate the need for costly fertiliser imports, bolstering the nation’s economy and fostering regional dominance in fertiliser supply.
The state-of-the-art facility, to be located in Gode city, Somali Region, will leverage Ethiopia’s natural gas reserves from Kalob and Ilala, further enhancing its cost-effectiveness and sustainability. With a production capacity of up to three million metric tons per year, the factory will not only meet domestic fertiliser demands but also position Ethiopia as a major exporter in the region.
"We are currently importing fertiliser at high foreign exchange rates to support our vital agricultural sector," Minister Shide explained. "This factory will eliminate this dependence, saving us billions of dollars and strengthening our economy.”
He emphasised the project’s far-reaching impact, extending beyond fertiliser production to encompass the development of natural gas resources, which will stimulate growth across the agricultural, mining, and industrial sectors.
Beyond the financial benefits, the fertiliser factory promises a surge in employment opportunities for Ethiopian citizens and contributes significantly to the nation's economic growth.
"This factory plays a crucial role in accelerating our economic progress. It will create numerous jobs and stimulate overall development in the region and the country,” Minister Ahmed affirmed.
The factory's strategic location in Gode is expected to drive significant infrastructural development in the surrounding area, fueling the city's growth and creating a ripple effect of positive economic activity.
Minister Ahmed highlighted the extensive efforts undertaken over the past seven years to attract large-scale national capacity-building investments, stating that this project marks a significant step towards realising that vision.
This investment propels Ethiopia toward becoming a fertiliser supply hub for the region, positively impacting neighbouring countries. The factory signifies a major stride towards self-sufficiency and economic resilience. The project is one of the largest of its kind globally in terms of scale, and embodies Ethiopia's commitment to a more prosperous future through strategic investment and resource utilisation, he underscored.
