ADDIS ABABA - In the presence of Prime Minister Abiy Ahmed (PhD), Ethiopian Investment Holdings (EIH) and Dangote Group have signed a landmark shareholders' agreement to jointly develop a 2.5 billion USD urea fertilizer production complex in Gode, Somali State.
The project, one of the largest industrial investments in Ethiopia's history, will have an annual production capacity of up to three million metric tons, ranking it among the top five single-site urea fertilizer plants globally. Under the agreement, Dangote Group will hold 60 percent equity while EIH retains 40 percent ownership.
Prime Minister Abiy hailed the agreement as another milestone in Ethiopia's path to food sovereignty and agricultural transformation.
"Congratulations to all Ethiopians on another milestone in our journey toward food security and agricultural transformation. With an investment of 2.5 billion USD, this mega project will produce up to 3 million metric tons of fertilizer annually, placing Ethiopia among the largest producers globally," he shared through his social media channels.
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The Premier further emphasized that the project will create jobs locally, secure a reliable fertilizer supply for Ethiopian farmers, and mark a decisive step toward food sovereignty.
"It strengthens Ethiopia's competitiveness across the continent and reflects our commitment to executing strategic investments that serve our people and our future. We have started this journey, and we will finish it for our farmers, for our economy, and for Ethiopia's future," he said.
The development includes state-of-the-art fertilizer plants and supporting infrastructure, notably a pipeline transporting natural gas from the Calub and Hilala gas fields to power the facility. The partnership also provides room for expansion into ammonia-based fertilizers such as ammonium nitrate and ammonium sulfate, strengthening Ethiopia's ambition to become a regional hub for fertilizer production.
Completion of the project is targeted within 40 months, with costs not to exceed 2.5 billion USD. Officials said the project will significantly reduce Ethiopia's reliance on fertilizer imports, create thousands of jobs in the Somali State, and support national food security.
Dangote Group Chairperson Aliko Dangote described the deal as a pivotal moment in Africa's drive for food self-sufficiency.
"The strategic location of Gode, coupled with Ethiopia's abundant natural gas reserves, makes this project ideal. We are committed to bringing our decades of experience to ensure this venture becomes a cornerstone of Ethiopia's industrial transformation and a catalyst for agricultural productivity," he said.
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EIH Chief Executive Officer Brook Taye (PhD) said the agreement marks a milestone in Ethiopia's journey toward industrial self-sufficiency.
"Securing a 40 percent stake in one of the world's largest urea complexes is a breakthrough for Ethiopia. The project directly supports our agricultural modernization agenda and ensures the long-term utilization of our domestic resources for national benefit," he stated.
The fertilizer complex is expected to play a transformative role in Ethiopia's agriculture sector, which employs over 70 percent of the population. Reliable access to high-quality fertilizers at competitive prices is anticipated to boost yields, raise farmer incomes, and reinforce food security.
Officials further noted that beyond serving Ethiopia's needs, the project will supply neighboring countries, reinforcing regional integration and positioning Ethiopia as a key player in the global fertilizer market.
BY YESUF ENDRIS
THE ETHIOPIAN HERALD FRIDAY 29 AUGUST 2025
