Dangote Group Signs $2.5bn Deal to Build Fertiliser Plant in Ethiopia, Holds 60% Stake

Dangote Group has signed a landmark $2.5 billion agreement with Ethiopian Investment Holdings (EIH) to build a world-class urea fertiliser plant in Gode, Ethiopia. The deal, signed in Addis Ababa, will see Dangote Group retain 60 per cent ownership of the project, while EIH, the government’s strategic investment arm, will hold 40 per cent. The project is expected to be one of the largest industrial investments in Ethiopia’s history.

The fertiliser complex will have a production capacity of up to three million metric tons annually, ranking it among the top five largest urea production facilities worldwide. Designed to boost Ethiopia’s agricultural output and reduce reliance on imports, the plant will serve both domestic and regional markets.

As part of the agreement, both parties will co-develop and operate advanced infrastructure, including natural gas pipelines from Ethiopia’s Hilal and Calub reserves, logistics and storage facilities, as well as export systems. This integrated approach aims to ensure a reliable, cost-effective supply chain for the fertiliser plant.

The $2.5 billion project is targeted for completion within 40 months, creating thousands of direct and indirect jobs in the Somali Regional State. Beyond employment, it is expected to strengthen food security, lower fertiliser import bills, and accelerate Ethiopia’s goal of becoming a regional hub for agricultural inputs.

Aliko Dangote, President and CEO of Dangote Group, described the deal as a “pivotal moment” in Africa’s industrialisation and food security drive. Dr. Brook Taye, CEO of EIH, emphasized that the project aligns with Ethiopia’s national development priorities, highlighting its long-term benefits for farmers, energy security, and the country’s broader economic transformation.

Source: Leadership