Dangote to build giant urea plant in Ethiopia
Nigeria’s Dangote Group is to build a US$2.5bn urea fertiliser plant in Ethiopia, strengthening its presence in the East African country
It follows the signing of a shareholders’ agreement with Ethiopian Investment Holdings (EIH), the government’s strategic investment arm, to develop, construct and operate a world-class production complex in Gode.
It represents one of the largest industrial investments in Ethiopian history and will provide a big boost for the nation’s construction sector.
Dangote will hold 60% ownership of the project, with EIH retaining a 40% stake.
Aliko Dangote, president and CEO of Dangote Group, said the partnership with EIH represents a “pivotal moment in our shared vision to industrialise Africa,” as well as boost food security on the continent.
“The strategic location of Gode, combined with Ethiopia’s abundant natural gas resources from the Hilal and Calub reserves, makes this an ideal location for what will become one of the world’s largest fertiliser complexes,” said Dangote.
He said he hoped the project becomes a cornerstone of Ethiopia’s industrial transformation and a catalyst for agricultural productivity throughout the region.
The project, which is expected to be completed within 40 months, will establish one of the world’s largest single-site urea fertiliser production complexes, with a combined capacity of up to three million metric tons per annum.
It will rank among the top five largest urea production complexes globally.
Under the agreement, the two sides will jointly develop the facility and associated infrastructure, which includes gas pipelines, storage facilities, logistics and export capabilities to serve both domestic and regional markets.
It also provides for potential expansions and upgrades in ammonia-based fertilisers, including ammonium nitrate, ammonium sulphate, and calcium ammonium nitrate, further cementing Ethiopia’s position as a regional fertiliser production hub.
A significant portion of the US$2.5bn cost includes the construction of dedicated pipeline infrastructure to transport gas to the Gode site.
“This landmark agreement with Dangote Group marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency and agricultural modernisation,” said EIH CEO Dr. Brook Taye.
“The project aligns perfectly with our national development priorities and will substantially enhance our agricultural productivity while positioning Ethiopia as a regional hub for fertiliser production.”
The project is expected to significantly reduce the country’s dependence on fertiliser imports while creating thousands of direct and indirect employment opportunities in the Somali Regional State and beyond.
It will also have a broader strategic impact since Ethiopia’s agricultural sector employs over 70% of the country’s population.
By ensuring reliable access to high-quality fertilisers at competitive prices, the project is expected to boost crop yields, improve farmer incomes, and contribute to national food security.
“The utilisation of our domestic Hilal and Calub gas reserves through dedicated pipeline infrastructure ensures energy security and cost competitiveness for decades to come,” said Taye.
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