The Ethiopian Herald (Addis Ababa)
By Solomon DIBABA
While recently responding to the questions forwarded to him by the members of parliament at HPR, Prime Minister Abiy Ahmed told members that Ethiopia will embark on constructing her own fertilizer factory after the full completion of the construction of GERD. He added that constructing a fertilizer factory in Ethiopia will be costly and of high technical caliber. He said that the factory could be constructed through private investment or joint venture as well as by the Ethiopian Government.
In 2012, Ethiopia launched the Yayu Fertilizer project which was embroiled right from the beginning with technical and managerial problems in which the government lost more than 200 billion Birr due to miscalculation and misappropriation by the then METEC officials.
In September 2021, Ethiopia and Morocco signed an agreement on joint construction of the Dire Dawa Fertilizer factory.
The author of this contribution intends to highlight the importance of building a fertilizer factory in Ethiopia, the dividends and challenges as well as the way out.
Fertilizers play a crucial role in boosting agricultural productivity, ensuring food security, and driving economic growth in Ethiopia. As an agrarian-based economy, Ethiopia relies heavily on agriculture, making fertilizers essential for enhancing soil fertility and increasing crop yields.
The establishment of a fertilizer factory in Ethiopia will certainly create a breakthrough in the promotion of food security in the country. Fertilizers shorten the period of maturity for various grains and other agricultural products.
Unlike most of the COMESA member states, Ethiopia does have a national fertilizer law which regulates the fertilizer industry the Fertilizer Manufacturing and Trade Proclamation No. 137/1998. The act gives the National Fertilizer Industry Agency (NFIA) the powers to govern the industry.
It must be noted that Ethiopia has also developed a Fertilizer Policy in 1993 to enhance agricultural production in the country.
Fertilizers improve soil fertility by replenishing essential nutrients such as nitrogen (N), phosphorus (P), and potassium (K).and will enhance yields enabling farmers to produce more food per hectare. Moreover, it helps farmers overcome soil depletion caused by continuous cultivation and erosion. Higher crop production means more food availability for the growing population.
Fertilizers reduce dependency on food imports, saving foreign exchange and thus enhancing cost recovery on the commodities. Although Ethiopia is gradually phasing out from imports of agricultural products like wheat and rice, the nation is still importing other agricultural products from overseas.
In addition, it contributes to self-sufficiency in staple crops like wheat, maize, and teff. In addition, increased yields result in higher profits for farmers, improving rural livelihoods. Encourages commercial agriculture and helps small-scale farmers transition to agribusiness.
Moreover, it strengthens rural economies by creating jobs in farming, fertilizer distribution, and agro-industries.
The government’s plan to reduce fertilizer imports and establish domestic fertilizer production (e.g., the upcoming Dire Dawa Fertilizer Factory) will boost industrialization. It supports the development of agro-processing industries by ensuring a steady supply of raw materials.
Increased agricultural production allows Ethiopia to export more cash crops such as coffee, sesame, and horticultural products. A competitive agricultural sector attracts foreign investment in agribusiness. The production and use of various types of fertilizers will help to improve the quality of these agricultural products and make them fit for quality exports.
Balanced fertilizer use helps combat soil degradation and desertification. Organic and bio-fertilizers contribute to sustainable farming and climate resilience.
However challenges associated with high costs and accessibility issues make fertilizers unaffordable for some farmers. Overuse or improper application can lead to soil and water contamination. The government needs to strengthen local production and distribution systems to reduce dependency on imports.
Fertilizers are a critical factor in transforming Ethiopia’s agricultural sector, ensuring food security, supporting industrialization, and driving economic growth. With better policies, investment, and sustainable use, fertilizers can significantly contribute to Ethiopia’s economic transformation and resilience.
Fertilizers are classified based on their nutrient composition and origin. The main types include Macronutrient Fertilizers which provide essential nutrients needed in large quantities. They include Nitrogen (N) Fertilizers (promote leaf growth),Urea (46% N),Ammonium Sulfate (21% N), Ammonium Nitrate (33-34% N),Phosphorus (P) Fertilizers (support root development)Single Superphosphate (SSP), Triple Superphosphate (TSP),Diammonium Phosphate (DAP)
Potassium (K) Fertilizers (enhance disease resistance and water retention) include: Potassium Chloride (Muriate of Potash),Potassium Sulfate
Micronutrient Fertilizers provide trace elements needed in small amounts, such as: Zinc (Zn),Boron (B),Iron (Fe),Copper (Cu)
They are derived from plant or animal sources, these improve soil health and fertility and include Manure (cow, poultry, compost), Bone Meal, Fish Emulsion, Green Manure (cover crops)
Inorganic fertilizers produced through chemical processes, they provide specific nutrients quickly. Urea, DAP, TSP have been used by farmers in Ethiopia over the last three decades.
What advantages can Ethiopia get by producing fertilizers in the country instead of importing from abroad? The author wishes to mention some of them.
Ethiopia expends more than 1 billion USD for importing fertilizers from overseas. This does not include insurance expenses, logistics and port warehouse expenses until it reaches the port of Djibouti. The government spends huge amount of money to transport fertilizers inland under difficult security situations to reach out to farmers on time. Besides, problems related to storage and transporting fertilizers right at the door steps of farmers requires deployment of armed convoys in very difficult terrain and security challenges.
But will also generate forex from the export of fertilizers to the neighboring countries as well as to the rest of Africa helping to pay her debts and debt servicing expenses in a relatively short period of time. Besides, if Ethiopia manages to produce her own fertilizers in the country, farmers will have access to these fertilizers in a rather shorter distance and time. The nation will further engage in import substitution on fertilizers and cut costs of importing them.
Apart from the above mentioned types of fertilizers, fertilizer factories also produce agro-chemical and soil improvement products that would include Soil Conditioners (e.g., Gypsum, Lime, and Biochar). On the other hand, plant growth regulators (e.g., Auxins, Gibberellins, Cytokinins), pesticides and Herbicides (e.g., Insecticides, Fungicides, Weed Killers) Biostimulants like seaweed extracts, Humic Acid, Mycorrhizal Fungi) can be produced in a typical fertilizer factory adding more to agricultural inputs that larger farms and household plot owning farmers in Ethiopia can use.
Industrial chemicals and bi-products like Sulfuric Acid & Phosphoric Acid (used in fertilizer production) can be produced in a fertilizer factory. Packaging and Agricultural Support Materials like Fertilizer Bags & Packaging Materials, liquid fertilizer containers and fertilizer blending and coating materials like anti-caking agents are produced in fertilizer factor. Fertilizer factories often integrate these products to meet various agricultural and industrial needs.
Building fertilizer factories in Ethiopia creates employment generation for the youth and provides them with practical knowledge about the use and handling of fertilizers and related products.
The importance of fertilizer for Ethiopia is evident in how it contributes to human health through bio fortification. By enhancing plants with nutrients like calcium, zinc, and magnesium, fertilizers help improve the nutritional value of food, providing people with vital elements for healthy living.
Many scientific and technological innovations have boosted crop productivity, particularly in the second half of the 20th century. However, none had a more profound impact than the development of mineral nitrogen fertilizer.
This groundbreaking agricultural achievement significantly increased food production and has since played a key role in feeding half of the world’s population.
With the global population projected to reach 10 billion by 2050, farmers must produce 70% more food than they did a decade ago. Given the limited availability of arable land, the solution lies in improving productivity on existing farmland–a challenge where the importance of fertilizer becomes indispensable. This is true for Ethiopia as well.Close
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As the Ethiopian population expands, so does the demand for food. Fertilizers enable farmers to produce more crops on the same amount of land, helping meet the rising food requirements. Countries with low crop yields per hectare, if provided with the right tools and solutions, could play a significant role in securing global food supplies.
In many low-income, smallholder farming communities, access to fertilizers can be transformative. With better productivity, smallholder farmers can increase their resilience, break the cycle of poverty, and contribute to the global food system in a sustainable way.
By applying fertilizers using the 4R approach (right source, right rate, right time, and right place), farmers in Ethiopia can maximize crop growth while minimizing waste. This efficient use of fertilizers reduces production costs per tons of crop and results in more and better products to sell, ultimately enhancing farmers’ profitability.
What are the major challenges that Ethiopia faces in terms of producing and utilizing fertilizers?
Ethiopian farmers lack adequate knowledge on the utilization of fertilizers and are in many cases fail to maximize their productivity. On the other hand, the skyrocketing prices of fertilizers is discouraging farmers while some farmers in the regions make their own organic fertilizers in the form of compost.
The construction of a modern fertilizer factory demands a huge amount of investment and requires soliciting funds either from joint partnership or private sector investment. Building fertilizer will introduce a major paradigm shift in Ethiopian agriculture and industrialization and will add up to the list of import substitution projects that country has been undertaking.
The Ethiopian Government is therefore expected to conduct a quality feasibility study for the construction of a fertilizer factory to avoid past errors and misgivings. Right after the completion of GERD, the people and government of Ethiopia will embark on this project on yet another economic victory for the nation.
Editor’s Note: The views entertained in this article do not necessarily reflect the stance of The Ethiopian Herald
Editor’s Note: The views entertained in this article do not necessarily reflect the stance of The Ethiopian Herald