Amanze Chinonye
The Dangote Group and Ethiopian Investment Holdings (EIH) have signed a $2.5 billion agreement to construct one of the world’s largest single-site urea fertiliser production complexes in Gode, Somali Regional State of Ethiopia a project hailed as a milestone in Africa’s industrial and agricultural transformation.
Under the agreement signed in Addis Ababa, Dangote Group will hold 60% ownership, while EIH, the strategic investment arm of the Ethiopian government, will control 40% equity.
The plant will produce up to three million metric tonnes of urea annually, ranking it among the top five fertiliser complexes globally.
Join our WhatsApp ChannelThe project will include the development of a dedicated gas transport pipeline linking Ethiopia’s Hilal and Calub gas reserves to the Gode production site, ensuring a steady and cost-effective feedstock supply.
It will also feature storage facilities, logistics infrastructure, and export systems serving both domestic and regional markets.
Construction costs are estimated not to exceed $2.5 billion, with completion targeted within 40 months of commencement. The agreement also provides for future expansion into other ammonia-based fertilisers such as ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate.
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Speaking at the signing ceremony, Aliko Dangote, President and CEO of Dangote Group, described the partnership as “a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent.”
“The strategic location of Gode, combined with Ethiopia’s abundant natural gas resources from the Hilal and Calub reserves, makes this an ideal location for what will become one of the world’s largest fertiliser complexes,” Dangote said.
He added that the 60-40 partnership structure underscores a long-term commitment to Ethiopian participation and local value creation.
Dr. Brook Taye, CEO of Ethiopian Investment Holdings, said the agreement represents “a significant milestone in Ethiopia’s journey toward industrial self-sufficiency and agricultural modernisation.”
“By utilising our domestic gas reserves through dedicated pipeline infrastructure, we are ensuring energy security and cost competitiveness for decades to come,” Taye said. “This partnership will deliver tremendous value to Ethiopian farmers, enhance food security, and generate substantial economic benefits for our nation.”
EIH said the project is expected to create thousands of direct and indirect jobs, boost agricultural productivity, and reduce Ethiopia’s dependence on imported fertilisers.
Industry analysts note that the investment also reinforces Dangote’s growing footprint across Africa, following the launch of its massive fertiliser and refinery complex in Lagos, Nigeria, and cement operations in several East African countries.
When completed, the Gode plant is projected to make Ethiopia a major fertiliser supplier for the Horn of Africa, supporting regional agricultural integration and reducing fertiliser import costs across East Africa.
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