By Hirsi Abdulkadir Mohamed
Former Member of the Ethiopian Federal Parliament and Horn of Africa Political Analyst
Wednesday August 26, 2026
Major industrial investment can transform Gode, but only if the city prepares its infrastructure, housing, land systems and public services before growth overtakes planning.
The Somali Region is entering an important new phase in its economic development, with Gode City at the centre of some of the most significant industrial investments in the region's history. The development of a large-scale fertiliser complex and an oil refinery could transform Gode City from an important administrative and commercial centre into one of Ethiopia's emerging industrial hubs.
The fertilizer complex is expected to produce three million metric tons of urea annually, while the planned refinery is designed to process approximately 3.5 million metric tons of crude oil per year. These are not ordinary investments. They have the potential to create employment, stimulate supporting businesses, strengthen national production and attract additional investment to the Somali Region.
The central question is therefore not only whether the projects will be completed. It is whether Gode will be prepared to accommodate the economic and population growth they are likely to generate.
Corridor development should begin immediately
The Somali Regional Government should make Gode an immediate priority for a comprehensive corridor-development programme. The city cannot wait until industrial operations begin and urban pressures become difficult and expensive to manage.
A properly designed corridor project should connect Gode's city centre, airport, industrial sites, markets, government institutions and major regional transport routes. It should include durable roads, effective storm-water drainage, street lighting, pedestrian walkways, organized parking, public transportation facilities and properly coordinated utility infrastructure.
Corridor development, however, must not be reduced to beautifying a few central streets. Attractive pavements and streetlights are useful, but they cannot compensate for inadequate water supplies, poor drainage, unplanned neighbourhoods or uncertain land records.
The project should form part of a broader urban-development strategy linked to Gode's approved structure plan. Every road, drainage system, commercial area and public facility should contribute to a coherent long-term vision for the city.
Implementation should also be phased. The first stage should prioritize routes with the greatest economic and public value—particularly those connecting industrial areas, the airport, the commercial centre and major residential zones. Beginning with a limited number of strategic corridors and completing them to a high standard would be more effective than launching many disconnected projects.
Housing must be planned before demand increases
One of the most urgent challenges will be housing. Large industrial projects attract workers and supporting businesses long before production begins. If housing supply does not expand in an orderly manner, Gode could face rapidly rising rents, informal settlements, land speculation and overcrowding.
The city administration should identify safe expansion areas and prepare detailed neighbourhood plans before uncontrolled construction begins. Housing plans should accommodate different income groups, including construction workers, permanent industrial employees, government staff, businesspeople and low-income residents.
New neighbourhoods must be supported by roads, drainage, water, electricity, schools, health facilities, markets, parks, places of worship, emergency services and waste-management systems. A plot should not be described as serviced simply because it has been allocated on paper.
The regional government should also invite credible local, diaspora, Ethiopian and international developers to invest in housing. Opportunities exist in affordable rental accommodation, middle-income housing, hotels, guest houses and temporary accommodation for construction personnel.
Private participation must be transparent and performance-based. Investors should receive clear procedures and predictable services, but public land should not be transferred for speculation. Agreements should include development deadlines and mechanisms for recovering land that remains undeveloped without justification.
Modern land administration is essential
Urban transformation cannot be built on fragile paper files, uncertain parcel boundaries and disconnected municipal records. Gode urgently needs a secure digital land-information system.
Every legally recognized parcel should receive a unique identification number and be linked to an accurate cadastral map. Digital records should show the parcel's boundaries, size, legally recognized holder, approved land use, transactions and applicable restrictions.
Existing title deeds must be inventoried, verified, scanned and connected to the correct physical parcels. Digitalization should not simply transfer inaccurate or conflicting records into computers. Disputed claims, overlapping allocations and unclear boundaries must be addressed through transparent verification and lawful adjudication.
Every change to a digital land record should leave a permanent audit trail identifying who made the alteration, when it was made and under what legal authority. Original documents should also be preserved in a professionally managed physical archive with fire protection, controlled access, regular backups and cybersecurity safeguards.
Reliable land information would protect residents' rights, reduce illegal or multiple allocations and give investors confidence that the land they develop will not later become subject to competing claims. It would also help the city protect road reserves, industrial zones, river buffers and sites designated for schools, health facilities and other public services.
Water, sanitation and environmental protection
Gode's modernization will depend heavily on its ability to provide reliable water and sanitation services. Industrial growth, construction activity and population increases will significantly raise demand.
The city requires a long-term water-supply plan based on realistic estimates of residential, commercial and industrial consumption. Water infrastructure should be expanded before shortages become severe, while distribution losses and unauthorized connections should be addressed.
The city must also establish reliable systems for wastewater, solid waste and hazardous industrial materials. Economic development that pollutes the Wabi Shabelle River or threatens surrounding communities would be neither sustainable nor acceptable.
Because Gode is located along the river, its expansion must be climate-sensitive. Flood-prone areas, river buffers and natural drainage routes should be identified, mapped and protected from inappropriate construction. Corridor projects and new neighbourhoods must incorporate adequate storm-water infrastructure rather than blocking existing waterways.
The fertilizer plant and refinery will require strong environmental monitoring, emergency-response capacity and coordination among federal, regional and city institutions. The city should prepare now by strengthening its fire, health, environmental and disaster-management services.
Turning industrial projects into a local economy
The refinery and fertilizer plant should generate opportunities beyond their immediate construction sites. They can stimulate demand for transport, logistics, warehouses, workshops, hotels, restaurants, retail businesses, banking, professional services and agricultural supply chains.
The regional government and Gode City Administration should prepare a professional investment prospectus identifying these opportunities. It should provide credible information about available serviced land, infrastructure, licensing requirements, tax obligations and expected demand.
The prospectus should be promoted to Somali diaspora investors, domestic businesses and credible international companies. Investment forums should focus on specific, bankable opportunities rather than general speeches.
Existing local businesses must also be supported to participate in emerging supply chains. Contractors, transport operators, farmers, livestock traders and service providers need access to finance, training, procurement information and quality standards.
Industrialization will have limited local impact if most contracts, skills and services are imported from outside the region. Technical and vocational institutions should therefore begin preparing young people for employment in construction, welding, electrical installation, machinery maintenance, laboratory services, logistics, environmental management, hospitality and information technology.
Limited budgets require clear priorities
The Somali Regional Government faces significant financial and technical constraints. Attempting to implement major corridor projects simultaneously in numerous towns could overstretch the available budget, weaken oversight and leave projects incomplete or below the required standard.
Other towns have legitimate development needs and must continue receiving essential services. Nevertheless, responsible budgeting requires government to distinguish between routine service provision and strategic capital investment.
Gode currently hosts an exceptional concentration of major federal industrial projects. Prioritizing its urban infrastructure would help protect those investments, attract complementary private capital and maximize their benefits for the wider Somali Region.
The government should therefore concentrate its limited urban-development resources on completing a focused, high-quality programme in Gode. After evaluation, successful approaches could be adapted and replicated in other growing towns as additional resources become available.
The regional government should also seek cost-sharing arrangements with federal institutions, industrial developers and private investors. The entire cost of the city's transformation should not fall on the regional budget.
Preparing a city for the future
Gode has a rare opportunity to convert major national investments into lasting urban prosperity. But the opportunity will not realize itself.
Without advance planning, the city could face housing shortages, informal settlements, overloaded public services, land disputes and environmental degradation. The cost of correcting these problems later would be far greater than the cost of preventing them today.
The Somali Regional Government should therefore act urgently and strategically. It should prioritize Gode's corridor development, prepare serviced housing, modernize land administration, strengthen utilities and public services, protect the Wabi Shabelle environment, train the local workforce and actively attract complementary investors.
This transformation will require competent professionals, coordination among different levels of government and leadership capable of looking beyond immediate political pressures. It will also require transparency, public participation and consistent implementation.
If Gode prepares today for tomorrow's growth, it can become more than the location of a refinery and fertilizer plant. It can become a modern, investable and inclusive city—and a practical model for transforming major industrial investment into lasting regional development.
