Dangote, Ethiopia Ink $2.5 Billion Deal to Build World's Largest Fertiliser Plants

L-R: CEO, Ethiopian Investment Holdings, Dr Brook Taye; Ethiopian Prime Minister, HE Abiy Ahmed Ali; President/CE, Dangote Group, Aliko Dangote and CEO, Dangote Fertilisers Ltd, Vishwajit Sinha at the signing of a $2.5 billion fertiliser plant agreement in Addis Ababa.


In a landmark agreement poised to reshape Ethiopia’s economy and bolster food security across Africa, the Dangote Group and Ethiopian Investment Holdings (EIH), the strategic investment arm of the Ethiopian government, have signed a comprehensive partnership to build a world-class urea fertiliser production complex. 


The ambitious project, valued at up to $2.5 billion, is set to be one of the largest industrial investments in Ethiopian history.


The partnership will see Dangote Group holding a 60% equity stake, while EIH will maintain a 40% share in the joint venture. 


The signing ceremony, held in Addis Ababa, brought together key figures including Ethiopian Prime Minister, Abiy Ahmed Ali, President and CEO of the Dangote Group, Aliko Dangote, and Dr Brook Taye, CEO of Ethiopian Investment Holdings.


This transformative project will establish one of the world's largest single-site urea fertiliser production complexes in Gode, Ethiopia. 


With a projected capacity of up to three million metric tons per annum, the facility will rank among the top five largest urea production complexes globally. 


This massive scale is a testament to the partners’ commitment to not only serving Ethiopia's domestic needs but also positioning the country as a major player in the global fertiliser market.


The agreement details a comprehensive plan for development, construction, and operation, including vital associated infrastructure. 


A significant component of the investment is a dedicated gas pipeline network that will transport natural gas from Ethiopia's Hilal and Calub reserves directly to the Gode production facility. 


This crucial infrastructure will ensure a reliable, cost-effective feedstock supply, providing the complex with a significant competitive advantage for decades.


Beyond the initial urea production, the agreement also leaves room for future expansions into other ammonia-based fertilisers, such as ammonium nitrate and ammonium sulfate, further solidifying Ethiopia's position as a regional production hub.


For Ethiopia, a nation where over 70% of the population works in agriculture, this project is a game-changer. 


The new plant is expected to significantly reduce the country’s dependence on costly fertiliser imports, ensuring farmers have reliable access to high-quality products at competitive prices. 


This, in turn, is projected to boost crop yields, improve farmer incomes, and contribute directly to the nation's food security objectives.


“This landmark agreement with Dangote Group marks a significant milestone in Ethiopia's journey toward industrial self-sufficiency and agricultural modernisation,” stated Dr. Brook Taye, CEO of Ethiopian Investment Holdings. 


“The project aligns perfectly with our national development priorities and will substantially enhance our agricultural productivity while positioning Ethiopia as a regional hub for fertiliser production,” he added.


The ripple effects of the investment are expected to be felt far beyond the agricultural sector. 


The project is poised to create thousands of direct and indirect jobs, providing a major economic boost to the Somali Regional State and the wider nation. 


The construction phase is targeted for completion within 40 months, signalling a swift and determined effort to get the facility operational.


For the Dangote Group, this venture is a continuation of its long-standing vision to drive Africa’s industrialisation and achieve continent-wide food security. 


Aliko Dangote, the group’s president and CEO, highlighted the strategic importance of the location.


“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 fertiliser complexes,” Dangote said. 


He added that the 60-40 partnership structure reflects a deep commitment to the project, ensuring strong Ethiopian participation.


The collaboration leverages the strengths of both parties: Dangote Group’s extensive experience in executing large-scale industrial projects across Africa, and EIH's role as the government's strategic investment vehicle with deep local market knowledge. 


This synergy is expected to ensure the project’s long-term success.


In addition to its domestic benefits, the Gode fertiliser complex is also set to support broader regional integration by becoming a reliable supplier of fertilisers to neighbouring countries. 


This could reduce import costs and improve agricultural productivity throughout East Africa and beyond, further cementing the project's transformative impact on the continent.


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