Dangote Group finalised a partnership agreement yesterday to establish, build, and manage a cutting-edge urea fertiliser manufacturing facility in Gode, Ethiopia. Upon completion, this initiative will make Ethiopia only the second nation in Sub-Saharan Africa to operate a Urea production facility, featuring an impressive three million metric tonne annual output.
This deal reinforces Aliko Dangote’s steadfast conviction that “only Africans can truly advance Africa’s development.”
“Tanzania and Mozambique have failed to establish Urea facilities over the last ten years, despite possessing substantial natural gas deposits. Both nations continue relying on imported fertiliser because international investors showed no interest in funding such ventures.”
Ethiopian Investment Holdings (EIH), Ethiopia’s government-backed strategic investment entity, joined forces with Dangote Group on Thursday to formalise this comprehensive partnership agreement for developing the state-of-the-art urea production facility in Gode.
The ownership arrangement allocates 40% equity to EIH, while Dangote Group secures 60% control of this groundbreaking initiative, marking one of Ethiopia’s most significant industrial investments to date.
This venture will create one of the planet’s most substantial single-location urea manufacturing complexes, featuring production capabilities reaching three million metric tonnes annually. The installation will secure a position among the globe’s five largest urea manufacturing operations.
The partnership framework establishes joint responsibility for developing, owning, building, operating, maintaining, insuring, and funding these advanced urea production facilities alongside supporting infrastructure. The comprehensive scope encompasses sophisticated gas transportation pipelines connecting Ethiopia’s Hilal and Calub natural gas deposits, warehousing systems, distribution networks, and export infrastructure targeting both local and regional consumption.
Future expansion opportunities include upgrades and additional ammonia-derivative fertiliser production covering ammonium nitrate, ammonium sulphate, and calcium ammonium nitrate, solidifying Ethiopia’s emergence as a regional fertiliser manufacturing centre.
Project investment is capped at $2.5 billion USD, with construction scheduled for completion within 40 months of initiation. A major portion of this funding covers dedicated pipeline construction to channel natural gas from Ethiopia’s confirmed Hilal and Calub reserves to the Gode manufacturing site, guaranteeing a dependable and economical raw material supply.
This major financial commitment demonstrates both organisations’ dedication to revolutionising Ethiopia’s farming industry and strengthening regional food security. The initiative promises to dramatically decrease Ethiopia’s fertiliser import dependency while generating thousands of direct and indirect jobs throughout the Somali Regional State and neighbouring areas.
Related: Economic Benefits of Dangote Port in Ogun State: A New Dawn for Nigeria , recently announced plans to develop Nigeria’s largest seaport at Olokola Free Trade Zone
Aliko Dangote remarked, “Our collaboration with Ethiopian Investment Holdings signifies a crucial turning point in our collective mission to industrialise Africa and establish continental food security. Gode’s strategic positioning, paired with Ethiopia’s rich natural gas resources from Hilal and Calub deposits, creates perfect conditions for establishing one of the world’s premier fertiliser manufacturing centres.
“We pledge to apply our extensive expertise in major industrial developments to make this project a foundation of Ethiopia’s industrial evolution and a driver of regional agricultural enhancement. Our 60-40 partnership model demonstrates our dedication to this revolutionary project while maintaining meaningful Ethiopian involvement.”
Dr Brook Taye, Chief Executive Officer of Ethiopian Investment Holdings, explained, “This historic partnership with Dangote Group represents a major achievement in Ethiopia’s pursuit of industrial independence and agricultural advancement. As Ethiopia’s government investment vehicle, EIH takes pride in obtaining a 40% ownership in what will become one of the world’s premier urea manufacturing facilities. This initiative perfectly supports our national development goals and will dramatically improve agricultural output while establishing Ethiopia as a regional fertiliser production centre.
“Leveraging our domestic Hilal and Calub gas resources through specialised pipeline systems guarantees energy independence and market competitiveness for generations. We anticipate this collaboration will provide exceptional benefits to Ethiopian farmers, support food security goals, and create significant economic advantages for our country.”
The Gode production facility will serve as vital support for Ethiopia’s agricultural industry, which provides employment for more than 70% of the nation’s workforce.
Through guaranteed access to superior fertilisers at affordable rates, this project anticipates increased agricultural yields, enhanced farmer earnings, and advancement toward national food security targets. With its three million metric tonne yearly output, this facility will rank among the world’s premier fertiliser manufacturing operations, substantially surpassing most current global facilities.
This magnitude establishes Ethiopia as a significant force in international fertiliser markets and a primary supplier across the African continent. The collaboration combines Dangote Group’s established success in major African industrial ventures with Ethiopian Investment Holdings’ function as the government’s strategic investment platform, bringing comprehensive local market knowledge and regulatory expertise.
The pipeline linkage to Hilal and Calub gas deposits guarantees sustained raw material availability and global market competitiveness. This project advances wider regional cooperation goals by establishing dependable fertiliser supplies for surrounding nations, potentially lowering import expenses and enhancing agricultural productivity throughout East Africa and beyond.
