Dangote To Build $2.5bn Fertiliser Plant In Ethiopia, Maintain 60% Ownership

Ethiopian Investment Holdings (EIH), the strategic investment arm of the government of Ethiopia, and Dangote Group have signed a comprehensive shareholders’ agreement to develop, construct, and operate a world-class urea fertiliser production complex in Gode, Ethiopia.

Under the partnership structure, EIH will hold a 40 per cent equity stake. At the same time, Dangote Group will maintain 60 per cent ownership of the transformative project, representing one of the largest industrial investments in Ethiopian history.

The ambitious project will establish one of the world’s largest single-site urea fertiliser production complexes, with production facilities boasting a combined capacity of up to three million metric tons annually. The facility will rank among the top five largest urea production complexes globally.

Under the agreement, the two companies will jointly develop, own, construct, operate, maintain, insure, and finance the state-of-the-art urea fertiliser plants and associated infrastructure. The comprehensive development includes advanced gas transport pipelines to evacuate natural gas from Ethiopia’s Hilal and Calub reserves, storage facilities, logistics infrastructure, and export capabilities designed to serve domestic and regional markets.

The Project Development costs are estimated not to exceed $2.5 billion, with completion targeted within 40 months from commencement. A significant component of this investment includes the construction of a dedicated pipeline infrastructure to transport natural gas from Ethiopia’s proven Hilal and Calub gas reserves to the Gode production facility, ensuring a reliable and cost-effective feedstock supply for the fertiliser complex.
This substantial investment underscores both companies’ commitment to transforming Ethiopia’s agricultural sector and enhancing regional food security. The project is expected to significantly reduce Ethiopia’s dependence on fertiliser imports, creating thousands of direct and indirect employment opportunities in the Somali Regional State and beyond.

The president/chief executive of Dangote Group, Aliko Dangote, said, “This partnership with Ethiopian Investment Holdings represents 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.”

According to Dangote, we are committed to bringing our decades of experience in large-scale industrial projects to ensure this venture becomes a cornerstone of Ethiopia’s industrial transformation and a catalyst for agricultural productivity throughout the region. The 60-40 partnership structure reflects our commitment to this transformative project while ensuring strong Ethiopian participation.

The chief executive officer of Ethiopian Investment Holdings, Dr. Brook Taye stated, “This landmark agreement with Dangote Group marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency and agricultural modernisation.

“As the strategic investment arm of the government of Ethiopia, EIH is proud to secure a 40 per cent stake in what will be one of the world’s largest urea production facilities. The project aligns perfectly with our national development priorities and will substantially enhance our agricultural productivity while positioning Ethiopia as a regional hub for fertiliser production.”

Taye noted that “the utilisation of our domestic Hilal and Calub gas reserves through dedicated pipeline infrastructure ensures energy security and cost competitiveness for decades to come. We are confident that this partnership will deliver tremendous value to Ethiopian farmers, contribute to food security, and generate substantial economic benefits for our nation.”