Why Dangote Chose Gode: Ethiopia’s $2.5B Fertilizer Gamble

Why Dangote Chose Gode: Ethiopia’s $2.5B Fertilizer Gamble ADDIS ABABA / GODE – Once dismissed as a remote and insecure outpost in Ethiopia’s Somali Region, Gode is now poised to become the centerpiece of one of Africa’s most ambitious industrial investments. In a landmark $2.5 billion deal, Dangote Group and Ethiopian Investment Holdings (EIH) will jointly construct one of the world’s largest urea fertilizer complexes in the city. The decision to anchor the project in Gode is not accidental. It reflects a deliberate convergence of resources, stability, policy, infrastructure, and symbolism that has made Gode uniquely suited to host Dangote’s next flagship venture. Natural Gas at the Source The biggest advantage is simple: proximity to feedstock. Gode sits near the Calub and Hilala natural gas fields, which were first discovered in the 1970s but only recently certified to hold over 7 trillion cubic feet (TCF) of reserves. Earlier attempts to commercialize these resources hinged on exporting gas to global markets through a 767-kilometer pipeline to Djibouti, led by Chinese operator Poly-GCL. That project collapsed under the weight of financing gaps, delays, and local resistance. Dangote’s strategy is different: build close to the resource. A shorter, domestic pipeline will transport gas directly to the Gode plant, making the operation less costly, less politically exposed, and more reliable. As one senior government adviser put it, “The days of chasing risky LNG export dreams are over. Dangote is investing where the gas lives.” Ethiopia’s Fertilizer Imperative For Ethiopia, fertilizer is not just a commodity — it is a matter of food security. The country spends billions of dollars every year importing around 765,000 metric tons of fertilizer. Volatile prices and global shortages, particularly during the 2022 supply crisis, have repeatedly strained Ethiopia’s fragile foreign exchange reserves. Dangote’s facility, with a planned annual capacity of 3 million metric tons, will more than quadruple Ethiopia’s current needs. The surplus positions Ethiopia as a potential exporter to neighbors like Kenya, Djibouti, and Somalia, aligning perfectly with the African Continental Free Trade Area (AfCFTA). Finance Minister Ahmed Shide, who hails from the Somali Region, described the project as “a once-in-a-generation opportunity” to save Ethiopia billions in imports, stabilize farm input prices, and reposition the nation as a regional fertilizer hub. A Safer Somali Region: Stability as a Game-Changer Perhaps the most surprising factor behind Dangote’s choice of Gode is security. For decades, the Somali Region was synonymous with instability, insurgency, and humanitarian crises. Yet in the past six years, the region has undergone a remarkable transformation. Peace with the ONLF (2018): The Ogaden National Liberation Front (ONLF), once a leading insurgent group, signed a peace deal and entered mainstream politics. This reduced the chronic cycle of conflict that had kept investors away for decades. Strengthened federal presence: Federal and regional authorities have invested in new security outposts, transport corridors, and administrative reforms that have made cities like Gode far safer than in the past. Relative safety compared to other regions: While parts of Ethiopia such as Amhara and Oromia continue to experience conflict, Somali Region has become one of the safest areas in the country, with improved law enforcement and stronger local governance. This shift in security perception is central to Dangote’s calculation. “No investor of this scale would commit billions unless they were convinced the region is stable,” one Addis-based analyst noted. “The fact that Somali is now considered safer than several other regions flips the old narrative on its head.” Political Will and Partnership Structure Another reason Gode became Dangote’s choice is government backing at the highest levels. Prime Minister Abiy Ahmed has personally endorsed the project as part of his decentralization agenda — steering large-scale investments beyond the traditional industrial corridors around Addis Ababa. The ownership structure also reflects this commitment. Dangote will hold a 60% stake, while the Ethiopian government, through EIH, retains a 40% share. This arrangement ensures that the government is not just a regulator but also a stakeholder — a critical incentive for long-term stability. For Dangote, this reduces political risk. For Ethiopia, it guarantees national participation in profits, giving the project both legitimacy and durability. Infrastructure and Development Cycle Gode’s infrastructure, once minimal, has seen significant upgrades. The city now boasts an international airport, an expanding road network, and upgraded health and education services. These improvements matter: earlier investors abandoned the Ogaden Basin due to logistical constraints as much as conflict. The fertilizer complex will itself drive further infrastructure—power lines, water systems, housing, and logistics hubs. For Dangote, this creates a mutually reinforcing cycle: the plant drives infrastructure, and infrastructure sustains the plant. Symbolism: From Periphery to Powerhouse The decision to build in Gode is also a statement. For decades, the Somali Region was marginalized in Ethiopia’s development agenda. By situating a multibillion-dollar complex in Gode, Ethiopia is rewriting that narrative. For Dangote, the symbolism is powerful. The company is not just extracting resources; it is positioning itself as a partner in Ethiopia’s state-building project, helping turn one of the country’s most peripheral cities into an industrial epicenter. Aliko Dangote himself emphasized this vision, saying, “This factory will not only transform Ethiopia’s agriculture but also show that regions once seen as unstable can become global industrial players.” Regional Gateway Advantage Geography makes Gode more than a domestic project. From its position in the Ogaden Basin, surplus fertilizer can easily flow to regional markets. Somalia and Djibouti lie to the east, Kenya to the south, all of them in need of affordable farm inputs. Under AfCFTA, Gode’s output could turn Ethiopia into East Africa’s fertilizer hub. This regional angle makes Gode more attractive than other Ethiopian cities. It is closer to export routes, strategically positioned for cross-border trade, and directly linked to Africa’s growing agricultural economies. Risks That Could Still Undermine Gode’s Promise Despite its promise, Gode is not risk-free. The ONLF, though weakened, could still mobilize if political dialogue collapses. Local communities, some of whom report illnesses linked to earlier gas exploration, fear environmental damage and land dispossession. Land rights and compensation remain thorny, with legal ambiguities that could trigger unrest if mishandled. For Dangote, these risks are not deal-breakers — but they demand robust engagement. Building trust with communities, ensuring transparent environmental safeguards, and guaranteeing benefit-sharing will determine whether Gode becomes a long-term success or another stalled dream in Ethiopia’s resource history. The Bottom Line Gode has become Dangote’s favorite place for investment because it offers a unique convergence: Resources at the source (Calub and Hilala gas). Improved stability (Somali Region now among Ethiopia’s safest). Policy support (government stake and political will). Economic logic (saving billions in fertilizer imports). Regional positioning (gateway to East Africa). Symbolism (turning Ethiopia’s periphery into a powerhouse). For Ethiopia, the project represents a chance to reshape its economy and strengthen its sovereignty. For Dangote, it is both a business opportunity and a legacy investment — one that could define its standing not just in Ethiopia, but across Africa.

Boeing Eyes Ethiopia’s Bole Airport for 777X Testing

Boeing Eyes Ethiopia’s Bole Airport for 777X Testing Boeing Co. is preparing to test its next-generation 777X wide-body at Addis Ababa Bole International Airport, in a move that underscores the airport’s growing role in global aviation trials and Ethiopian Airlines’ ambitions to become Africa’s dominant hub carrier. A Boeing delegation met with Ethiopian Civil Aviation Authority Director General Yohannes Abera to seek preliminary clearance for the aircraft’s conformity assessment, according to the regulator. Officials highlighted Bole’s altitude—7,625 feet above sea level—as ideal for evaluating the 777X’s performance in thin-air conditions, from takeoff thrust to climb rates. The plan mirrors Airbus SE’s 2006 decision to trial the A380 superjumbo in Addis Ababa, leveraging similar high-altitude conditions. Ethiopian Airlines Stakes on the 777X The tests come months after Ethiopian Airlines Group signed a deal to purchase eight Boeing 777-9 jets, with options for 12 more. The agreement, announced in March, made the Addis-based airline the first African customer for the model. The 777-9 is the larger version of Boeing’s new family, designed to carry up to 426 passengers and fly more than 7,200 nautical miles. Powered by GE9X engines and equipped with composite wings featuring folding wingtips, the jet promises a 10% fuel-burn improvement versus previous 777 models. Deliveries to launch customer Lufthansa are slated for 2026, with Ethiopian expected to take its aircraft in the years following. Strategic Expansion Ethiopian Airlines is in the middle of its Vision 2035 plan, which aims to nearly double its fleet to 271 aircraft, grow destinations from 133 to more than 200, and quadruple annual passenger numbers to 65 million. A new mega-hub south of Addis Ababa is under development, projected to handle 100 million travelers annually—a scale comparable to Dubai International. By committing to the 777X, Ethiopian is signaling its intent to remain Africa’s long-haul leader, challenging Gulf carriers and Turkish Airlines for global transfer traffic. Why It Matters For Boeing: Addis Ababa provides a rare high-altitude test site as it races to certify the delayed 777X program. For Ethiopia: Hosting another flagship aircraft test reinforces Bole’s profile as more than a regional hub. For the Airline: Modern, fuel-efficient jets are critical to sustaining growth while cutting costs in a competitive global market.

Ethiopian Airlines to Launch Direct Flights to Yabelo with Special Discounted Fares

Ethiopian Airlines to Launch Direct Flights to Yabelo with Special Discounted Fares ADDIS ABABA, Ethiopia – Ethiopian Airlines, Africa’s largest and most profitable carrier, is pleased to announce that it has finalized all preparations to commence scheduled passenger services to Yabelo Airport with three weekly flights. The inaugural service is set to take place on September 5, 2025, marking an important milestone in Ethiopia’s domestic air connectivity. Expanding Domestic Connectivity Yabelo, located in Ethiopia’s Borena Zone within the Oromia Region, is a strategic hub for commerce, tourism, and culture. The new route reflects Ethiopian Airlines’ ongoing commitment to strengthening domestic and regional air transport, ensuring that previously underserved areas become more accessible. By opening Yabelo Airport to scheduled passenger flights, the airline will enhance mobility for residents, support tourism in the region, and contribute to local economic growth. Ethiopian Airlines currently operates the largest domestic network in Africa, serving more than 20 destinations within Ethiopia. With Yabelo added to the list, the airline is expanding its ability to connect remote communities to the capital, Addis Ababa, and beyond through its global network. Special Introductory Fares To celebrate this new route, Ethiopian Airlines is offering limited-time discounted ticket prices. Passengers traveling to Yabelo can take advantage of the promotional fares by purchasing tickets directly from Ethiopian Airlines’ ticket offices or through the airline’s digital platforms, including the website and mobile app. The discount aims to make air travel more accessible and to encourage travelers to experience Yabelo’s unique cultural and natural attractions. A Boost for Tourism and Trade Yabelo and its surrounding areas are known for their rich cultural heritage, pastoralist traditions, and natural landscapes, including wildlife reserves and eco-tourism opportunities. Improved air access is expected to facilitate domestic tourism, encourage business travel, and strengthen local trade. Furthermore, Ethiopian Airlines’ decision to expand into Yabelo underscores the company’s broader strategy to support Ethiopia’s regional development goals. By connecting secondary cities and emerging towns, the airline is not only enhancing convenience for passengers but also stimulating economic opportunities in previously hard-to-reach areas. Ethiopian Airlines: Leading Africa’s Aviation As a member of the Star Alliance and a global aviation leader, Ethiopian Airlines continues to set benchmarks in both international and domestic aviation. With a fleet of modern aircraft and a reputation for operational excellence, the airline’s expansion into Yabelo is a testament to its vision of making air travel an engine for national development.

Ethiopia Partners with Dangote to Build One of the World’s Largest Fertilizer Complexes

Ethiopia Partners with Dangote to Build One of the World’s Largest Fertilizer Complexes ADDIS ABABA, Ethiopia – Ethiopian Investment Holdings (EIH), the government’s sovereign investment arm, has signed a landmark agreement with Nigeria’s Dangote Group to build a multi-billion-dollar fertilizer complex in Gode, Somali Regional State. The project, one of the largest industrial investments in Ethiopia’s history, is designed to transform the country’s agriculture and reduce reliance on imports. Project Overview The mega facility will rank among the top five largest urea fertilizer complexes worldwide, with an annual capacity of up to three million metric tons. The site will draw on natural gas from Ethiopia’s Hilala and Calub reserves, delivered via a dedicated pipeline, ensuring stable supply and cost efficiency. Beyond urea, the agreement outlines expansions into ammonia-based fertilizers such as ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate—positioning Ethiopia as a future fertilizer hub for Africa. Investment and Timeline Total Investment: Up to $2.5 billion Ownership: Dangote Group (60%), EIH (40%) Timeline: Completion targeted in 40 months Jobs: Thousands of direct and indirect roles expected The project is designed to significantly cut Ethiopia’s fertilizer imports while unlocking new opportunities for farmers and exporters. Leaders’ Perspectives Aliko Dangote, Chairman of Dangote Group: “This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security. Gode’s strategic location and Ethiopia’s natural gas reserves make it an ideal site for one of the world’s largest fertilizer complexes.” Dr. Brook Taye, CEO of Ethiopian Investment Holdings: “This landmark deal aligns perfectly with our national development priorities. It will enhance Ethiopia’s agricultural productivity, ensure energy security, and deliver tremendous value for farmers while positioning Ethiopia as a regional fertilizer hub.” Strategic Impact Agriculture employs over 70% of Ethiopia’s population, making fertilizer access a critical driver of food security and economic growth. Key benefits include: Reliable supply of competitively priced fertilizers Boosted crop yields and farmer incomes Reduced dependence on costly imports Expanded exports to neighboring countries The project also supports Ethiopia’s goal of becoming a regional trade and investment hub, while contributing to Africa’s broader agricultural self-sufficiency agenda. About the Partners Ethiopian Investment Holdings (EIH):Established in 2021, EIH manages Ethiopia’s largest state-owned enterprises, including Ethiopian Airlines, Ethio Telecom, and Commercial Bank of Ethiopia. It acts as the government’s strategic investment arm to attract capital and optimize national assets. Dangote Group:Africa’s leading industrial conglomerate, Dangote Group operates across cement, fertilizer, petrochemicals, and key infrastructure sectors. The company is renowned for spearheading large-scale industrial projects across the continent. 👉 With construction soon to begin, the Gode fertilizer complex marks a turning point for Ethiopia’s industrial future—blending natural resource wealth with strategic investment to fuel the country’s next phase of growth.

National Bank of Ethiopia Pushes Banks to Modernize Hawala Transfers

National Bank of Ethiopia Pushes Banks to Modernize Hawala Transfers The Governor of the National Bank of Ethiopia (NBE), Mamo Mihretu, has sent a strong message to the banking industry: do more to boost foreign exchange inflows. Speaking at the launch of new money transfer services by Dashen Bank and Commercial Bank of Ethiopia, the Governor said banks are failing to provide convenient digital remittance options for Ethiopians abroad and their families at home. “The work done by our banks to ensure foreign exchange flows is not satisfactory,” Mamo stressed, urging all banks to adopt secure, digital hawala systems that encourage legal remittances through the financial sector. Why It Matters Ethiopia’s foreign exchange supply remains strained despite growing remittance potential. Informal hawala channels dominate, diverting funds outside the legal financial system. Digital, tech-enabled solutions could channel billions into Ethiopia’s economy and stabilize currency flows. Dashen Bank’s New Digital Hawala Services At a ceremony held at the Sheraton Addis, Dashen Bank, in partnership with Egline System Technologies, introduced three new remittance options: Gift Ethiopia – Allows Ethiopians abroad to send money, gift cards, and holiday products directly to relatives. Agent-Based Hawala – Licensed agents facilitate easy and legal money transfers across the country. Global Digital Platform – Connects multiple international money transfer operators into a single, streamlined system. Dashen Bank CEO, Asfaw Alemu, said the new services would provide inclusive financial solutions, particularly for Ethiopians working in different parts of the world who want to legally send money home. The Bigger Picture The Governor praised Dashen and CBE for pioneering legal hawala solutions and called on all banks to follow suit. He emphasized the need for competitive pricing, secure technology, and transparent services to win the trust of Ethiopians abroad. With Ethiopia’s foreign exchange rate showing signs of stabilization, expanding legal remittance options is seen as a crucial step in sustaining the economy’s recovery.

Ethiopia to Launch International Flights From Regional Airports

Ethiopia to Launch International Flights From Regional Airports Addis Ababa — Ethiopia is preparing to take a major step in aviation connectivity by allowing international flights to operate directly from regional airports instead of routing all traffic through Addis Ababa Bole International Airport. A New Era for Regional Airports The announcement was made during a meeting between the Ethiopian Civil Aviation Authority and private aviation companies on flight services.According to Ato Endeshaw Yegezu, Advisor for Air Transport and International Affairs, the plan is part of Ethiopia’s strategy to decentralize air connectivity, ease travel burdens, and boost tourism. Planned Flight Routes The new network will link regional cities through both domestic and international connections.Some of the highlighted plans include: Mizan Tepe – Jimma – Gambella – Asosa route Dire Dawa – Harar – Bale Robe route This means passengers will no longer have to pass through Addis Ababa to connect between regional destinations. Opening Regional Gateways to the World Beyond domestic convenience, Ethiopia is also planning to open international flights from cities such as Bahir Dar, Mekelle, and Dire Dawa.This is expected to: Boost export trade by reducing logistical bottlenecks Attract investment into regional hubs Support agriculture and industrial development by easing cargo movement Spiritual Journeys From Regional Airports In addition to business and tourism travel, regional airports will also cater to religious journeys.Planned routes include: Hajj and Umrah flights from regional hubs Pilgrimage routes for Christmas in Lalibela Special flights for Timket (Epiphany) in Gondar Why It Matters Ethiopia’s aviation expansion signals a shift from centralization to regional integration. By unlocking regional airports for international flights, the country is not only easing passenger travel but also opening up new opportunities for tourism, trade, investment, and cultural exchange.

Ethiopia’s Coffee Exports Hit $268 Million in July Despite Lower Volumes

Ethiopia’s Coffee Exports Hit $268 Million in July Despite Lower Volumes Addis Ababa – Ethiopia, Africa’s largest coffee producer and the birthplace of Arabica beans, earned $268 million in export revenues from coffee in July, according to the Ethiopian Coffee and Tea Authority. Revenue Surge Amid Decline in Volume Public Relations and Communications Director Sahlemariam Gebremedhin revealed that the country had planned to export 53,480 tons of coffee in July of the 2018 Ethiopian fiscal year, targeting revenues of $216.4 million. However, only 38,663 tons were exported. Despite this shortfall, the sharp rise in global coffee prices pushed total earnings to $268 million, representing a 53% increase in revenue compared to the same month last year. By contrast, the volume of exports slipped by 2%, highlighting how international price trends and quality premiums are cushioning Ethiopia’s coffee sector against lower output. Key Markets Driving Demand Germany, Saudi Arabia, and Belgium remain Ethiopia’s largest coffee buyers. Strong demand was also recorded from China, the United States, Japan, South Korea, and the United Arab Emirates, underscoring Ethiopia’s growing diversification of coffee markets beyond its traditional European base. A Record-Breaking Sector The Authority noted that Ethiopia earned $2.6 billion in coffee export revenue in the 2017 fiscal year, the highest in its history. Coffee remains Ethiopia’s single most important export commodity, employing over 15 million people across farming, processing, and distribution. $3 Billion Ambition For the current fiscal year, the Ethiopian Coffee and Tea Authority has set an ambitious target: exporting 600,000 tons of coffee and generating more than $3 billion in revenue. Achieving this would mark another record for Ethiopia’s coffee industry and strengthen its position as one of the world’s top Arabica suppliers. Coffee is not only Ethiopia’s leading foreign-exchange earner but also a cultural symbol, with the traditional Ethiopian coffee ceremony serving as a central feature of daily life. As global demand rises for high-quality, specialty, and organic coffees, Ethiopia is well-positioned to expand its footprint—though challenges like climate change, supply-chain inefficiencies, and competition from Latin American producers remain.

Ethio Telecom Targets 88 Million Subscribers with Ambitious Three-Year Strategy

Ethio Telecom Targets 88 Million Subscribers with Ambitious Three-Year Strategy Addis Ababa – Ethio Telecom has announced an ambitious plan to increase its subscriber base to 88 million in the current fiscal year, up from 83.2 million, as part of a sweeping three-year “Next-Generation Strategy” designed to accelerate Ethiopia’s digital transformation. The plan, unveiled alongside the company’s 2018 Ethiopian fiscal year work program, was presented by CEO Frehiwot Tamiru, who emphasized that the strategy is directly tied to the government’s 10-Year National Development Plan. Expanding Digital Infrastructure To close Ethiopia’s digital gap, Ethio Telecom will dramatically scale up its network infrastructure. Over the next three years, the company plans to: Roll out 1,228 new sites in urban areas and 322 in rural areas. Launch 5G services in 10 cities during the current fiscal year. Establish a wireless network with capacity for 112.4 million users. Frehiwot stressed that this expansion is not only about subscriber numbers but also about positioning Ethiopia to compete in the global digital economy. Financial Ambitions Ethio Telecom has also set record-breaking financial targets: 235.8 billion birr in revenue by the end of the 2018 Ethiopian fiscal year. 4.43 trillion birr in TeleBirr transactions, highlighting the rapid adoption of mobile money across Ethiopia. These goals reflect the company’s drive to remain competitive in an increasingly liberalized telecom sector, where foreign operators are expected to intensify competition. Addressing Market and Cyber Challenges The strategy also places emphasis on overcoming structural barriers and security concerns. Frehiwot noted that the plan incorporates new safeguards against cybersecurity threats while addressing market-related challenges such as affordability, rural connectivity, and network reliability. “Digitalization is no longer optional—it is essential,” she explained. “This strategy is our blueprint for creating a future-proof telecom sector that supports Ethiopia’s economic growth.” TeleBirr: Powering the Digital Economy TeleBirr, Ethio Telecom’s flagship mobile money platform, will play a central role in the next phase of growth. With a target of 4.43 trillion birr in transactions, TeleBirr is set to deepen financial inclusion and transform how Ethiopians access banking, payments, and government services. Industry analysts note that TeleBirr’s expansion could strengthen Ethiopia’s cashless economy agenda, helping the country modernize its financial systems while boosting revenues. By expanding access, upgrading infrastructure, and investing in financial technology, Ethio Telecom aims to transform Ethiopia’s connectivity landscape. With competition expected to grow as more players enter the market, the success of this three-year strategy will be crucial in defining the company’s role as both a market leader and a catalyst for Ethiopia’s digital future.

Enat Bank Wins Women Empowerment Award as It Expands Growth Strategy

Enat Bank Wins Women Empowerment Award as It Expands Growth Strategy Addis Ababa, Aug 13 (Addis Insight) – Enat Bank has been named the winner of the Excellence in Women Empowerment Award at the 23rd Connected Banking Summit – Innovation & Excellence Awards 2025, hosted by the International Center for Strategic Alliances (ICSA). The award recognizes the bank’s pioneering role in advancing women’s access to finance and its leadership in gender-inclusive banking. Mrs. Tenagne Basa received the award on behalf of Enat Bank during the ceremony in Addis Ababa. Bank Built on Women’s Leadership Founded in 2013 by Ethiopian women entrepreneurs, Enat Bank remains unique in Ethiopia’s financial sector with 64% of its 23,000+ shareholders being women and a majority-women board. Its model has drawn global recognition, including commitments to the UN Women’s Empowerment Principles (WEPs) and partnerships to support women-owned SMEs. Beyond lending, the bank integrates business advisory, training, and mentorship into its financial services—a strategy aimed at closing the gender gap in entrepreneurship. Performance and Strategy Enat Bank ended the 2023/24 financial year with: Revenue: 4.29 billion birr (+28.9%) Net profit: 555 million birr (+2.1%) Assets: 27.2 billion birr (+19.2%) Deposits: 21 billion birr (+17.7%) Branch network: 201, including Islamic banking outlets under its Ummi brand The bank’s capital now stands at 3 billion birr, with plans to meet the central bank’s 5 billion birr requirement by 2026. Looking ahead, Enat is investing heavily in digital banking through platforms like Arif POS, Maleifya digital lending, and M-Pesa integration, while also focusing on tighter cost controls. Wider Industry Context The Connected Banking Summit highlighted themes of digital inclusion, open banking, AI adoption, and cyber resilience—all central to Ethiopia’s financial sector reforms. For Enat, the award underscores how a women-centered strategy can align with broader modernization, positioning the bank as a niche but fast-growing player in an increasingly competitive industry. The Excellence in Women Empowerment Award strengthens Enat Bank’s reputation as a trailblazer in inclusive finance. With expansion into digital services and steady balance-sheet growth, the bank is signaling that its founding vision—banking that empowers women—remains both a social mission and a competitive edge in Ethiopia’s evolving banking market.