Addis Ababa, August 29, 2025 (FMC) — Ethiopia’s fertilizer factory construction project is a practical step taken to ensure food security and sovereignty, according to Ministry of Agriculture.
Recall that the Ethiopian Investment Holding and the Dangote Group signed a 2.5 billion USD agreement for the establishment of a fertilizer factory in the presence of Prime Minister Abiy Ahmed.
In a message he shared on his social media page, Prime Minister Abiy congratulated Ethiopians for reaching another milestone in the country’s journey towards food security and agricultural transformation.
Speaking to local news agency ENA, Agriculture Minister Addisu Arega described the agreement as great news for Ethiopian farmers.
The factory will serve as a strategic resource to drive agricultural transformation and implement the goals set under the new Agricultural and Rural Development Policy, he added.
According to the minister, the project will help Ethiopia save billions of dollars currently spent on fertilizer purchases.
Upon completion, the factory would play irreplaceable role in ensuring timely delivery of fertilizer to farmers and boosting production and productivity.
The minister pointed out that the initiative also reflects the practical implementation of Medemer, which advocates for economic growth through the effective utilization of natural resources.
On his part, Finance Minister Ahmed Shide said the project will play a vital role in accelerating Ethiopia’s economic growth, underscoring its importance in supporting the agricultural sector and reducing the high costs associated with imported fertilizer.
The urea fertilizer plant is expected to be completed within 40 months, with a production capacity of three million metric tons.