Dangote Group to Invest $2.5 Billion in Urea Fertilizer Plant in Ethiopia

The Dangote Group has taken a monumental step in strengthening its foothold in Ethiopia by announcing a $2.5 billion investment to build a state-of-the-art urea fertilizer plant. This initiative follows the recent signing of a shareholders agreement with Ethiopian Investment Holdings (EIH), the government's strategic investment arm. Set to be located in Gode, the facility represents one of the most significant industrial investments in Ethiopia's history, poised to invigorate the construction sector and bolster the agricultural landscape.

With the Dangote Group holding a 60% stake in the project and EIH retaining 40%, the collaboration is seen as a pivotal moment in the shared vision of industrializing Africa and enhancing food security across the continent. Aliko Dangote, the Group's President and CEO, highlighted the strategic advantages of Gode’s location, coupled with Ethiopia’s abundant natural gas reserves from the Hilal and Calub fields, making it an ideal site for one of the largest fertilizer complexes in the world.

Scheduled for completion within 40 months, the facility is set to have a production capacity of up to three million metric tons annually, positioning it among the top five urea production complexes globally. The agreement outlines plans for the joint development of essential infrastructure, including gas pipelines and logistics capabilities, to serve both domestic and regional markets. Additionally, there is potential for expansion into ammonia-based fertilizers, further solidifying Ethiopia's role as a regional hub for fertilizer production.

The $2.5 billion investment will also fund the construction of dedicated pipeline infrastructure, crucial for transporting gas to the site. Dr. Brook Taye, CEO of EIH, remarked on the landmark agreement's significance, stating it aligns with Ethiopia's national development priorities and is expected to enhance agricultural productivity substantially. This project aims to significantly reduce Ethiopia's dependence on fertilizer imports, creating thousands of direct and indirect jobs, particularly in the Somali regional state.

By ensuring consistent access to high-quality fertilizers at competitive prices, the initiative is anticipated to elevate crop yields, improve farmer incomes, and contribute to national food security. Furthermore, the utilization of domestic gas reserves ensures long-term energy security and cost competitiveness, setting a robust foundation for Ethiopia's agricultural transformation.