Dangote and Ethiopia join forces to build Africa’s largest fertilizer hub

THE POST ON SUNDAY

In a landmark move set to reshape Africa’s agricultural and industrial landscape, Ethiopian Investment Holdings (EIH) and Dangote Group have inked a historic shareholders’ agreement to construct and operate a world-class urea fertilizer production complex in Gode, Ethiopia. The partnership, announced this week in Addis Ababa, allocates a 60% stake to Dangote Group and a 40% stake to EIH, underscoring a strategic collaboration between one of Africa’s foremost private industrial players and the Ethiopian government.

The project, which represents one of the largest industrial investments in Ethiopia’s history, is expected to establish a urea production facility capable of producing up to three million metric tons per year—placing it among the top five largest single-site urea complexes globally. With its scale and ambition, the Gode plant is more than a fertilizer facility; it is a bold statement of Africa’s industrial potential and an investment in the continent’s food security.

The estimated project development cost is approximately USD 2.5 billion, with completion targeted within 40 months. Beyond its sheer size, the initiative will include state-of-the-art production infrastructure and a dedicated pipeline transporting natural gas from the Calub and Hilala fields to the facility. Plans are also underway for potential expansions to produce other ammonia-based fertilizers, such as ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, positioning Ethiopia as a regional fertilizer hub and potentially reducing reliance on imports across the continent.

“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent,” said Aliko Dangote, Chairman of Dangote Group. “The strategic location of Gode, combined with Ethiopia’s abundant natural gas reserves, makes this project ideal. Our 60-40 partnership structure ensures strong Ethiopian participation while leveraging Dangote’s decades of experience in large-scale industrial projects.”

Echoing this optimism, Dr. Brook Taye, CEO of Ethiopian Investment Holdings, emphasized the transformative nature of the project. “This agreement marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency and agricultural modernization. By harnessing domestic gas reserves and integrating them into a world-class fertilizer complex, we are creating reliable, cost-competitive inputs for Ethiopian farmers while positioning the country as a regional production hub,” he said.

Agriculture remains the backbone of Ethiopia’s economy, employing over 70% of the population. Reliable access to affordable, high-quality fertilizers is crucial for boosting crop yields, raising farmer incomes, and achieving national food security objectives. The Gode complex will not only supply the domestic market but also support neighboring East African countries, fostering regional trade and integration.

By bringing together Dangote Industries’ proven track record across Africa with EIH’s strategic understanding of local markets and government priorities, the partnership promises to deliver both economic and social benefits. Thousands of direct and indirect jobs are expected to be created in the Somali Regional State and beyond, while industrial-scale fertilizer production could help stabilize agricultural input costs for the region.

The Dangote-Ethiopia collaboration exemplifies the growing trend of African-led industrial projects that aim to reduce reliance on imports, strengthen local economies, and create regional supply chains. Dangote Group, Africa’s leading industrial conglomerate, has been at the forefront of similar initiatives in Nigeria, Senegal, and across the continent, spanning cement, fertilizer, and petrochemicals. Its expansion into Ethiopia signals continued confidence in the continent’s investment potential.

For Ethiopia, the project aligns with the government’s broader industrialization and agricultural modernization agenda. Since its establishment in 2021, Ethiopian Investment Holdings has been consolidating state-owned assets to attract strategic partnerships and maximize long-term economic value. By acquiring a 40% stake in the Gode fertilizer complex, EIH reinforces its mandate to position Ethiopia as a key player in Africa’s industrial and investment landscape.

Beyond the immediate benefits to agriculture and industry, the Gode urea project opens new avenues for investment and technological advancement in Africa. It demonstrates how strategic partnerships can leverage natural resources, local expertise, and international experience to create sustainable industrial ecosystems. The facility’s operations are expected to encourage further private-sector participation, including downstream investments in agro-processing, logistics, and related services.

As Africa continues to confront challenges of food security, import dependency, and industrial development, the Dangote-Ethiopia fertilizer complex represents a beacon of opportunity, a project that blends bold vision, substantial investment, and a pragmatic approach to continental growth. For Ethiopian farmers, African investors, and the wider region, the Gode project is not merely a fertilizer plant; it is a catalyst for economic transformation and a tangible example of what African industrial ambition can achieve when vision meets execution.