Ethiopian Investment Holdings (EIH), the strategic investment arm of the Government of Ethiopia, and Africa’s leading conglomerate, Dangote Group, have signed a historic shareholders’ agreement to develop, construct, and operate a world-class urea fertilizer production complex in Gode, Somali Regional State.
Under the agreement, Dangote Group will hold 60% ownership while EIH will maintain a 40% equity stake in what is projected to become one of the largest industrial investments in Ethiopia’s history.
The ambitious project is designed to establish one of the world’s largest single-site urea fertilizer complexes, with facilities boasting a combined production capacity of up to three million metric tons per annum. This scale will place Ethiopia among the top five global producers of urea, marking a major leap in the country’s industrial and agricultural transformation.
The partnership covers not only the construction of the urea plants but also the development of essential infrastructure. This includes advanced pipelines to transport natural gas from Ethiopia’s Hilal and Calub reserves, , storage and logistics facilities, and export systems to serve both domestic and regional markets. With project development costs estimated at $2.5 billion, completion is targeted within 40 months from commencement.
Beyond urea, the agreement allows for expansions into ammonia-based fertilizers, including ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, strengthening Ethiopia’s ambitions to become a regional hub for fertilizer production.
Aliko Dangote, President and Chief Executive of Dangote Group, described the partnership as a “pivotal moment in Africa’s industrialization journey.” He 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. The strategic location of Gode, combined with Ethiopia’s abundant natural gas resources, makes this project a cornerstone of Ethiopia’s industrial transformation and agricultural productivity.”
Dr. Brook Taye, Chief Executive Officer of Ethiopian Investment Holdings, emphasized the project’s importance to Ethiopia’s agricultural modernization, stating:
“This landmark agreement marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency. With EIH securing a 40% stake, this project will substantially enhance our agricultural productivity while positioning Ethiopia as a regional fertilizer hub.”
The fertilizer complex is expected to create thousands of jobs, boost food security, and drastically reduce Ethiopia’s dependence on fertilizer imports. By ensuring local farmers access to affordable, high-quality fertilizers, the project is set to transform crop yields and farmer incomes.
The Gode complex will not only serve Ethiopia but also strengthen regional integration by supplying neighboring countries with competitively priced fertilizers, reducing import reliance, and promoting food security across East Africa. With a secured gas pipeline infrastructure feeding into the plant, Ethiopia is also positioning itself as a cost-competitive player in global fertilizer markets.
As over 70% of Ethiopia’s population depends on agriculture, this project stands to be a game-changer for millions of farmers and a symbol of Ethiopia’s emergence as a global industrial player.
By Lekan Olofinsusi
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