Ethiopian Investment Holdings (EIH), the strategic investment arm of the Government of Ethiopia, and Dangote Group have signed a comprehensive shareholders’ agreement to develop, construct, and operate a world-class urea fertilizer production complex in Gode, Ethiopia. The signing took place on Thursday (August 28) in the presence of Prime Minister Abiy Ahmed.
Addressing the landmark deal, Prime Minister Abiy Ahmed said, “Congratulations to all Ethiopians on another milestone in our journey toward food security and agricultural transformation. Today, we signed the Fertilizer Complex Shareholder Investment Agreement between Ethiopian Investment Holdings and Dangote Industries Limited.”
He added that the project will create local jobs, ensure a reliable fertilizer supply for farmers who have long faced challenges, and represent a decisive step toward achieving food sovereignty.
According to an official statement released by EIH, under the partnership, EIH will hold a 40% equity stake, while Dangote Group will maintain 60% ownership of the transformative project, marking one of the largest industrial investments in Ethiopian history.
The project will establish one of the world’s largest single-site urea fertilizer production complexes, with combined production capacity of up to three million metric tons per year. This positions the Gode facility among the top five largest urea production complexes globally. Under the agreement, both entities will jointly finance, construct, own, and operate the state-of-the-art urea fertilizer plants and associated infrastructure. The development includes a pipeline to transport natural gas from the Calub and Hilala gas fields to the facility.
The agreement also provides for potential expansions, upgrades, and new initiatives in ammonia-based fertilizer production, including ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, further strengthening Ethiopia’s position as a regional hub for fertilizer production.
Project development costs are estimated at $2.5 billion, with completion targeted within 40 months from commencement. The investment is expected to significantly reduce Ethiopia’s dependence on fertilizer imports while creating thousands of direct and indirect jobs in the Somali Regional State and beyond.
Aliko Dangote, Chairman of Dangote Group, said, “This partnership with Ethiopian Investment Holdings marks a pivotal moment in our shared vision to industrialize Africa and strengthen food security.” Brook Taye, Chief Executive Officer of Ethiopian Investment Holdings, added that this landmark agreement with Dangote Group represents a major step toward industrial self-sufficiency and agricultural modernization. “The project aligns seamlessly with our national development priorities, boosting agricultural productivity and positioning Ethiopia as a regional hub for fertilizer production. By utilizing domestic Hilala and Calub gas reserves through dedicated pipelines, we ensure energy security and cost competitiveness for decades. We are confident this partnership will deliver substantial value to Ethiopian farmers, enhance food security, and generate significant economic benefits for the nation,” he said.
The Gode fertilizer complex is expected to play a crucial role in supporting Ethiopia’s agricultural sector, which employs over 70% of the population. By providing reliable access to high-quality fertilizers at competitive prices, the project will boost crop yields, improve farmer incomes, and support national food security objectives.