Ethiopian Investment Holdings (EIH), the government’s strategic investment arm, has entered into a shareholders’ agreement with Dangote Group to develop and operate a $2.5 billion urea fertilizer production complex in Gode, Ethiopia.
According to the agreement, Dangote Group will control 60 percent of the equity in the project, while Ethiopian Investment Holdings (EIH) will hold the remaining 40 percent. The initiative is regarded as one of the most significant industrial investments ever undertaken in Ethiopia.
Announcing the deal, Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Industries Limited, revealed that the plant is set to become one of the largest single-site urea fertilizer complexes in the world. He noted that with an annual capacity of up to three million metric tons, it will rank among the top five globally.
Group Chief Branding and Communications Officer of the company said the agreement covers the joint development, ownership, construction, operation, maintenance, and financing of the fertilizer plant and related infrastructure.
”This includes advanced gas transport pipelines to evacuate natural gas from Ethiopia’s Hilal and Calub reserves, storage facilities, logistics systems, and export infrastructure to serve both domestic and regional markets.”
Chiejina explained that the agreement also makes room for future expansions into ammonia-based fertilizers such as ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, thereby positioning Ethiopia as a regional fertilizer hub.
The $2.5 billion project is expected to be completed within 40 months. A major part of the investment will be dedicated to building a dedicated pipeline to transport natural gas from the Hilal and Calub reserves to the Gode plant, ensuring steady and cost-effective feedstock supply.
Chiejina stressed that the investment reflects both companies’ commitment to transforming Ethiopia’s agricultural sector and boosting food security in the region.
He added that the complex would help Ethiopia cut down on fertilizer imports, while creating thousands of direct and indirect jobs in the Somali Regional State.
Dangote Hails Landmark Partnership with Ethiopia
Dangote Group President and Chief Executive, Aliko Dangote, described the partnership as a milestone in Africa’s push for industrialisation and food security.
“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent,” Dangote said.
“The strategic location of Gode, combined with Ethiopia’s abundant natural gas resources, makes it ideal for one of the world’s largest fertilizer complexes. We are committed to leveraging our decades of experience in large-scale industrial projects to make this venture a cornerstone of Ethiopia’s industrial transformation.”
Chief Executive Officer of EIH, Dr. Brook Taye, said the project would accelerate Ethiopia’s drive toward industrial self-sufficiency and agricultural modernization.
“This landmark agreement marks a significant milestone in Ethiopia’s journey toward industrial self-reliance,” Taye stated.
“By securing a 40 percent stake, we ensure strong Ethiopian participation in a facility that will not only improve agricultural productivity but also position the country as a major regional hub for fertilizer production.”
He further explained that tapping into Ethiopia’s gas reserves through a dedicated pipeline system would ensure long-term energy stability and cost efficiency. According to him, the project will give farmers consistent access to quality fertilizers, improve crop productivity, strengthen food security, and open up new economic opportunities.
