The Dangote Group and Ethiopian Investment Holdings (EIH) have signed a shareholders’ agreement to develop, construct, and operate a world-class urea fertilizer production complex in Gode, Ethiopia.
The project, valued at $2.5 billion, will establish one of the world’s largest single-site urea fertilizer production complexes, with a combined capacity of up to three million metric tons per annum.
Under the partnership structure, EIH will hold a 40% equity stake, while Dangote Group will maintain 60% ownership of the project.
The agreement provides for the joint development, ownership, construction, operation, maintenance, insurance, and financing of the state-of-the-art urea fertilizer plants and associated infrastructure.
The project 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.
The facility will rank among the top five largest urea production complexes globally and will significantly reduce Ethiopia’s dependence on fertilizer imports.
The project is expected to boost crop yields, improve farmer incomes, and contribute to national food security objectives.
With its 3 million metric ton annual capacity, the facility will position Ethiopia as a major player in the global fertilizer market and a significant exporter of fertilizers to the region.
The project is expected to create thousands of direct and indirect employment opportunities in the Somali Regional State and beyond.
The construction and operation of the facility will also stimulate economic growth and development in the region.
The partnership between Dangote Group and EIH leverages Dangote’s proven track record in large-scale industrial projects across Africa and EIH’s deep understanding of the local market and regulatory environment.
The pipeline connection to the Hilal and Calub gas reserves ensures long-term feedstock security and cost competitiveness in global markets.
Aliko Dangote, President/Chief Executive of Dangote Group, said, “This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent.”
Dr. Brook Taye, Chief Executive Officer of EIH, stated, “This landmark agreement with Dangote Group marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency and agricultural modernization.”
The Dangote Group’s $2.5 billion investment in the fertilizer plant is a significant milestone in Ethiopia’s industrial transformation and a catalyst for agricultural productivity throughout the region.
The project is expected to have a positive impact on the country’s economy, food security, and employment opportunities.
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