Nigerian billionaire Aliko Dangote has announced ambitious plans to expand the $2.5 billion Dangote fertilizer Plant in a bid to accelerate industrial transformation across Africa. The expansion project aims to significantly increase production capacity, with the goal of reducing the continent’s heavy reliance on imported fertilizer and enhancing self-sufficiency in agricultural inputs.
“In the next 40 months, Africa will not import fertilizer from anywhere. We have a very aggressive trajectory right now. We want to put Dangote to be the highest producer of urea, bigger and higher than Qatar – give me 40 months,” Dangote declared at the annual Afreximbank meeting in Abuja, as reported by Reuters.
Africa currently imports over 6 million metric tons of fertilizer annually, a costly dependence that hinders agricultural productivity and exposes farmers to global supply shocks. Dangote’s expansion plans come at a crucial time when the continent is striving to achieve food security and boost agricultural output.
As of today, the Dangote fertilizer plant, already one of the largest in the world, has the capacity to produce up to 3 million metric tons of urea per year. The planned expansion aims to double this output, positioning Africa to meet its own fertilizer needs and potentially become an exporter in the future.
According to a trade report by Afreximbank, Africa’s fertilizer exports reached a value of $8.9 billion in 2021, more than double the continent’s imports of $3.7 billion. This surplus was largely driven by North African producers, with Morocco and Egypt accounting for $6.23 billion in fertilizer exports, showcasing the region’s increasing importance in global supply chains.
While fifteen African countries were net exporters of fertilizer in 2021, key markets such as Ethiopia, Côte d’Ivoire, Zambia, Kenya, and the Democratic Republic of Congo remained heavily reliant on imports. Dangote’s efforts to expand its fertilizer production capacity will not only benefit Nigeria but also contribute to the overall development of Africa’s agricultural sector.
In addition to supplying the domestic market, Dangote currently exports roughly 37% of its urea output to the United States, making it a significant player in the global fertilizer trade. The company also exports to other key markets such as Brazil, India, and Mexico, further solidifying its position as a major player in the industry.
With the planned expansion of the Dangote fertilizer plant, Africa is poised to achieve greater self-sufficiency in fertilizer production, reducing its dependence on imports and potentially becoming a net exporter in the future. This strategic move by Aliko Dangote underscores his commitment to driving industrial transformation and economic growth on the continent.
