Ethiopian Investment Holdings and Dangote Group Sign Landmark Shareholders’ Agreement for $2.5 Billion, 3 million Metric Tons Urea Fertilizer Production Complex in Gode, Ethiopia
ADDIS ABABA, Ethiopia – Ethiopian Investment Holdings (EIH), the strategic investment arm of the Government of Ethiopia, and Dangote Group today announced the signing of a comprehensive shareholders’ agreement to develop, construct, and operate a world-class urea fertilizer production complex in Gode, Ethiopia. Under the partnership structure, EIH will hold a 40% equity stake while Dangote Group will maintain 60% ownership of the transformative project that represents one of the largest industrial investments in Ethiopian history.
Project Overview
The ambitious project will establish one of the world’s largest single-site urea fertilizer production complexes, with production facilities boasting a combined capacity of up to three million metric tons per annum. This capacity positions the Gode facility among the top five largest urea production complexes globally. Under the agreement, the two entities will jointly finance own, construct, and operate the state-of-the-art urea fertilizer plants and associated infrastructure. The comprehensive development includes a pipeline to transport natural gas from a gas processing facility in Calub and Hilala gas fields.
The agreement also outlines potential expansions, upgrades, and new initiatives in the production of ammonia-based fertilizers, including ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, further strengthening Ethiopia’s position as a regional hub for fertilizer production.
Investment and Timeline
The Project Development Costs are estimated not to exceed $2.5 billion USD, with completion targeted within 40 months from commencement. This substantial investment underscores the commitment of both entities to transforming Ethiopia’s agricultural sector and enhancing food security across the region. The project is expected to significantly reduce Ethiopia’s dependence on fertilizer imports while creating thousands of direct and indirect employment opportunities in the Somali Regional State and beyond.
Aliko Dangote, Chairman of Dangote Group , commented: “This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent. The strategic location of Gode, combined with Ethiopia’s abundant natural gas resources from the Hilala and Calub reserves, makes this an ideal location for what will become one of the world’s largest fertilizer complexes. We are committed to bringing our decades of experience in large-scale industrial projects to ensure this venture becomes a cornerstone of Ethiopia’s industrial transformation and a catalyst for agricultural productivity throughout the region. The 60-40 partnership structure reflects our commitment to this transformative project while ensuring strong Ethiopian participation.”
Dr. Brook Taye, Chief Executive Officer of Ethiopian Investment Holdings, stated: “This landmark agreement with Dangote Group marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency and agricultural modernization. As the strategic investment arm of the Government of Ethiopia, EIH is proud to secure a 40% stake in what will be one of the world’s largest urea production facilities. The project aligns perfectly with our national development priorities and will substantially enhance our agricultural productivity while positioning Ethiopia as a regional hub for fertilizer production. The utilization of our domestic Hilala and Calub gas reserves through dedicated pipeline infrastructure ensures energy security and cost competitiveness for decades to come. We are confident that this partnership will deliver tremendous value to Ethiopian farmers, contribute to food security, and generate substantial economic benefits for our nation.”
Strategic Impact
The Gode fertilizer complex will play a crucial role in supporting Ethiopia’s agricultural sector, which employs over 70% of the country’s population. By ensuring reliable access to high-quality fertilizers at competitive prices, the project is expected to boost crop yields, improve farmer incomes, and contribute to national food security objectives. The project positions Ethiopia as a major player in the global fertilizer market and a key supplier for the African continent. The partnership leverages Dangote Industries’ proven track record in large-scale industrial projects across Africa and Ethiopian Investment Holdings’ role as the government’s strategic investment vehicle with deep understanding of the local market and regulatory environment. The project also supports broader regional integration objectives by creating a reliable supply of fertilizers for neighboring countries, potentially reducing import costs and improving agricultural productivity across East Africa and beyond.
About Ethiopian Investment Holdings
Ethiopian Investment Holdings (EIH) is the strategic investment arm of the Government of Ethiopia, established in 2021 to manage and optimize state-owned commercial assets. With a focus on long-term value creation, EIH owns and manages some 40 state-owned enterprises, including Ethiopian Airlines, Commercial Bank of Ethiopia, Ethio Telecom, and Ethiopian Shipping and Logistics. The fund aims to position Ethiopia as a key player in global investment markets by acquiring strategic stakes in both domestic and international enterprises.
About Dangote Group
Dangote Group is Africa’s leading industrial conglomerate with operations spanning cement, fertilizer, petrochemicals, and other key sectors across the continent. The company is committed to industrializing Africa and improving lives through strategic investments in critical infrastructure and manufacturing.
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