Africa's Strategic Push To Build Its Own Fertiliser Industry

Africa’s push to build more resilient supply chains is increasingly extending beyond energy and into fertiliser—a critical input for food production that has become vulnerable to the same geopolitical risks affecting global oil markets.

The Strait of Hormuz, through which a significant share of the world’s oil, natural gas, and petrochemical products pass, is also a key artery for fertiliser inputs. As tensions in the Middle East disrupt trade flows and raise costs, African governments and businesses are accelerating efforts to produce fertiliser closer to home and reduce reliance on imports.

Few companies are moving more aggressively than the Dangote Group. While its refinery has attracted global attention, Dangote has quietly built one of Africa’s largest fertiliser businesses, with its Nigerian urea plant already producing roughly 3 million tonnes annually as part of a broader effort to end Africa’s fertiliser imports.

In 2026, the company increased its planned investment in Ethiopia from $2.5 billion to more than $4 billion, backing a major fertiliser complex expected to produce another 3 million tonnes of urea annually for both domestic and regional markets.

The investment reflects a broader continental trend. Morocco’s OCP Group continues expanding fertiliser production and blending facilities across Africa, while Egypt is investing heavily in ammonia and fertiliser projects linked to its natural gas resources.

Together, these developments signal a strategic shift: rather than exporting raw materials and importing agricultural inputs, African economies are increasingly investing in industrial capacity that captures more value locally while strengthening food security.

For investors and policymakers, the implications extend beyond agriculture. Local fertiliser production reduces exposure to global supply shocks, lowers import bills, supports foreign-exchange stability, and creates opportunities across natural gas, logistics, manufacturing, and distribution. Amid geopolitical uncertainty, fertiliser is emerging as a strategic industry at the intersection of food security, industrialisation, and economic resilience.