Dangote Moves to Build Largest Fertiliser Factory, Names Location

• Dangote Industries and Ethiopia have signed a $3 billion agreement to establish a large fertiliser facility in the Somali Regional State, aimed at boosting agricultural output and stabilising regional supply chains
• The factory will produce nitrogen and urea-based fertilisers for both domestic and export markets, strategically located near the logistics corridor between Ethiopia and Djibouti
• This expansion follows Dangote Fertiliser’s success in Nigeria and aims to strengthen its position in Africa's fertiliser industry while supporting regional agricultural growth

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Dangote Industries and Ethiopia have reached a significant agreement for the establishment of a large fertiliser facility in the Somali Regional State. The $3 billion project aims to boost agricultural output, which has recently been hindered by fertiliser shortages, and stabilise regional supply chains.

The proposed factory will produce nitrogen and urea-based fertilizers for both domestic and export markets. It will be strategically located near the logistics corridor between Ethiopia and Djibouti, providing easier access to ports for importing raw materials and exporting the finished fertiliser.

Tribune reported that this project aligns with Ethiopia's goal of decentralising economic activity and attracting investment to historically disadvantaged areas,.

Last month, the Dangote Group set an ambitious goal to increase daily shipments to 16,000 tons within the next two years and earn up to $7 million from fertiliser exports.

Dangote Fertiliser, Africa’s largest granulated urea fertiliser complex, already has a remarkable production capacity of 3 million metric tons per year. The factory has played a crucial role in supporting Nigeria's agricultural economy and reducing the country’s dependence on foreign fertilisers.

In a bid to strengthen its position in the African fertiliser industry and ensure supply stability, Dangote is expanding into Ethiopia to support regional agricultural growth.

Dangote prepares for NGX listing

Legit.ng reported that the richest man in Africa, Aliko Dangote, is preparing to take Dangote Fertiliser Limited public, one of his most ambitious businesses.

The company is set to debut on the Nigerian Exchange (NGX), potentially valuing it at over $3 billion.

This offering could drastically reshape the industrial and agricultural landscape of the nation.

The fertiliser plant is already the largest of its kind in Africa, covering 500 hectares in Ibeju Lekki, Lagos. However, market size and price aren’t the only factors at play here. It’s part of a broader goal Dangote has been quietly pursuing for years: reducing Africa's dependence on imports and reviving local industry.

The objective involves lowering local costs, enabling blends to be tailored for various soil types, and unlocking export opportunities across the region.

This larger goal extends beyond increasing production; it also aims to help Nigeria become self-sufficient and even supply its neighbours by reducing the nation's heavy reliance on imports.

Dangote Refinery plans to sell shares to Nigerians

Legit.ng reported that the Nigerian Exchange Group (NGX) is actively preparing for the listing of Dangote Petrochemicals, with the target set for the second quarter of 2025.

Africa's richest man is said to have applied to list the company publicly, giving Nigerians a chance to become part-owners through investments.

Umaru Kwairanga, NGX Chairman, in a statement on Friday, June 6, said that the anticipated listing aligns with President Bola Tinubu’s economic agenda, which aims to expand Nigeria’s Gross Domestic Product (GDP) to $1 trillion by 2030.

Source: Legit.ng