Ethiopia Investment Holdings (EIH), the strategic investment arm of the Government of Ethiopia, and Dangote Group have announced the signing of a comprehensive shareholders’ agreement to construct 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 project.
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 would jointly develop, own, construct, operate, maintain, insure, and finance the state-of-the-art urea fertilizer plant and associated infrastructure, according to a statement by Dangote Spokesperson, Tony Chiejine.
Chiejine said 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,” he stated.
President/Chief Executive of Dangote Group, Aliko Dangote, was quoted to have 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 from the Hilal and Calub reserves makes this an ideal location for what will become one of the world’s largest fertilizer complexes.
“We are committed to bringing our decades of experience in large-scale industrial projects to ensure this venture becomes a cornerstone of Ethiopia’s industrial transformation and a catalyst for agricultural productivity throughout the region. The 60-40 partnership structure reflects our commitment to this transformative project while ensuring strong Ethiopian participation.”
The Chief Executive Officer of Ethiopian Investment Holdings, Dr. Brook Taye, stated: “This landmark agreement with Dangote Group marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency and agricultural modernisation.
“As the strategic investment arm of the government of Ethiopia, EIH is proud to secure a 40 per cent stake in what will be one of the world’s largest urea production facilities. The project aligns perfectly with our national development priorities and will substantially enhance our agricultural productivity while positioning Ethiopia as a regional hub for fertilizer production.”
