BREAKING: Dangote Group Set To Build $2.5bn Fertiliser Plant In Ethiopia

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

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

The ambitious project will establish one of the world’s largest single-site urea fertilizer production complexes, with production facilities boasting a combined capacity of up to three million metric tons per annum. 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 stateof-the-art urea fertilizer 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 both domestic and regional markets.

The agreement also provides for potential expansions, upgrades, and similar fertilizer production initiatives in ammonia-based fertilizers, including ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, further cementing Ethiopia’s position as a regional fertilizer production hub. 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 fertilizer complex.

This substantial investment underscores both companies’ commitment to transforming Ethiopia’s agricultural sector and enhancing food security across the region. The project is expected to significantly reduce Ethiopia’s dependence on fertilizer imports while creating thousands of direct and indirect employment opportunities in the Somali Regional State and beyond.