The Ethiopian Investment Holdings (EIH), the government’s strategic investment arm, and Dangote Group have signed a shareholders’ agreement to build and operate a large-scale urea fertiliser production complex in Gode, Ethiopia.
Under the agreement, Dangote Group will hold a 60 per cent stake in the project, while EIH will retain 40 per cent. Valued at about $2.5 billion, the investment is described as one of the largest in Ethiopia’s industrial history.
When completed, the complex is expected to produce up to three million metric tons of urea annually, placing it among the world’s five largest single-site urea plants. The project includes construction of natural gas pipelines from Ethiopia’s Hilal and Calub reserves, storage facilities, logistics systems, and export infrastructure.
The agreement also allows for potential expansion into other ammonia-based fertilisers such as ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate.
According to Dangote Group, the plant is scheduled for completion within 40 months. The facility is projected to cut Ethiopia’s reliance on imported fertilisers, create thousands of jobs, and support agricultural productivity, especially in the Somali Regional State.
Dangote Group Chairman Aliko Dangote described the partnership as a step toward advancing food security and industrial growth in Africa. He said the project reflects the company’s commitment to ensuring Ethiopian participation while leveraging its experience in large industrial ventures.
Chief Executive Officer of EIH, Dr. Brook Taye, said the project would provide Ethiopia with energy security and cost advantages by using domestic gas reserves. He noted that the investment aligns with Ethiopia’s development goals and positions the country as a regional fertiliser hub.
Agriculture employs more than 70 per cent of Ethiopia’s population, and officials say the plant will provide farmers with reliable access to affordable fertiliser, improve yields, and enhance national food security.
