Ethiopia has begun construction of two major industrial projects in the Somali Region, aimed at reducing reliance on imported fuel and fertiliser. The developments include a 3.5 million tonne per year oil refinery at Gode, capable of producing about 111 million litres of petrol annually, and a urea fertiliser complex with annual capacity of three million tonnes.

The Gode refinery is being developed by Golden Concord Group and will process crude from the Hilal field. It will be built at a designated fuel site in Gode, a strategic location along trade corridors connecting Ethiopia to Djibouti, and is intended to establish large-scale domestic refining capacity. The investment package for the refinery is reported at about $2.5 billion under a joint venture share structure.

The urea complex, to be developed by Ethiopia Investment Holding in partnership with Dangote Group, will utilise gas from the Calub field through a 108-kilometre transmission pipeline. The facility has a planned construction period of about 40 months and is expected to produce three million tonnes annually. It will also include a self-sufficient polypropylene bagging facility to package all fertiliser locally.

At the ceremony, attended by senior Ethiopian government officials, Nigerian delegates, and other invited guests, Aliko Dangote described the project as a “historic milestone.” He said the complex is not only a fertiliser plant but “a symbol of collaboration and a testament to Ethiopia’s commitment to creating an enabling environment for investment.”

Dangote said the project will support Ethiopia’s plan to expand cultivated land, increase fertiliser application to 80 kilograms per hectare, and help position the country as Africa’s leading agricultural nation within five years. Dangote also announced plans to invest in additional fertilisers, including ammonium nitrate, ammonium sulfate, MPK, and calcium ammonium nitrate, strengthening Ethiopia’s role as a regional fertiliser hub.

Dangote detailed the group’s existing investments in Ethiopia, including the 2.5 million-ton Didongo Cement plant in Mugel and a $400 million expansion to double production. Across Africa, the group operates in 11 countries, including a 650,000-barrel daily refinery, a one million-ton polypropylene plant, and plans to expand fertiliser production from three million to nine million tonnes within three years.

Ethiopia currently imports the bulk of its fuel and fertiliser, with shortages and price volatility in recent years contributing to inflationary pressure and agricultural delays. Officials said the new projects would help stabilise domestic supply, reduce foreign exchange dependence, and support national development objectives.

Prime Minister Abiy Ahmed described the projects as more than industrial expansion, noting they demonstrate Ethiopia’s ability to mobilise resources, strengthen partnerships, and foster peace. The initiatives also align with the government’s broader economic reform agenda, which seeks to attract foreign investment, improve industrial capacity outside Addis Ababa, and enhance regional development.