The Dangote Group has entered into a historic partnership with Ethiopian Investment Holdings (EIH) to design, build, and operate a state-of-the-art urea fertiliser manufacturing complex in Gode, Ethiopia. The initiative represents one of the most significant industrial undertakings in the country’s history and signals a new chapter in Africa’s agricultural and industrial advancement.
Upon completion, Ethiopia will become only the second Sub-Saharan African nation to host a urea fertiliser facility. The plant, with an estimated annual output of three million metric tonnes, will be among the world’s top five single-site urea production complexes, highlighting Africa’s growing commitment to achieving self-sufficiency in agricultural inputs.
In line with the agreement, EIH—the Ethiopian government’s strategic investment vehicle—will own 40 per cent equity, while Dangote Group will retain a 60 per cent controlling share. The $2.5 billion mega-project, scheduled for delivery within 40 months, includes the construction of purpose-built gas pipelines to channel natural gas from Ethiopia’s Hilal and Calub reserves directly to the Gode plant.
The facility will be complemented by expansive infrastructure, including modern storage systems, transportation networks, and export channels, ensuring service to both domestic markets and neighbouring economies. The agreement also makes provision for future diversification into other ammonia-based fertilisers such as ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, thereby positioning Ethiopia as a central fertiliser hub in Africa.
During the signing ceremony, the President of Dangote Group described the deal as a pivotal step for Africa’s industrial development. He emphasised that, while nations like Tanzania and Mozambique have remained dependent on fertiliser imports despite significant gas reserves, Ethiopia’s choice to collaborate with an African investor proves that the continent can take ownership of its own economic trajectory. According to him, Gode’s strategic location combined with Ethiopia’s abundant natural gas offers the perfect setting for one of the globe’s largest fertiliser plants. He further noted that the venture would revolutionise agricultural productivity in Ethiopia while reinforcing food security across the region.
Enjoying this article? Share it with your network!
The Chief Executive Officer of Ethiopian Investment Holdings hailed the agreement as a landmark in Ethiopia’s pursuit of industrial independence. He explained that the project would drastically cut reliance on imported fertilisers, harness domestic gas reserves for energy stability, and substantially improve crop yields by supplying farmers with affordable, high-quality fertiliser.
Beyond addressing food security challenges, the project promises to generate thousands of direct and indirect jobs, particularly in the Somali Regional State where the plant will be located. Employment will cover sectors such as construction, logistics, plant operations, and supply chain services, while also boosting small-scale enterprises and service providers within the region.
Given that agriculture employs more than 70 per cent of Ethiopia’s population, the sector is expected to benefit immensely. A steady, competitively priced fertiliser supply will strengthen farmer earnings, uplift rural economies, and raise overall national productivity. At maximum capacity, the Gode facility will not only satisfy Ethiopia’s domestic demand but also feed regional markets, firmly positioning the country on the global fertiliser map.
With a long-standing record of successfully delivering large-scale industrial projects across Africa, Dangote Group contributes unmatched experience and scale to the initiative. Combined with EIH’s role as the government’s investment representative, the collaboration embodies both local participation and a broader continental ambition.
Widely regarded as a cornerstone of Ethiopia’s industrial transformation, the Gode fertiliser complex represents a bold statement that Africa can establish world-class industrial assets to secure its agricultural and economic future.
