The strategic investment arm of the Government of Ethiopia, Ethiopian Investment Holdings (EIH), and Dangote Group have announced the signing of a comprehensive shareholders’ agreement to develop, construct, and operate a state-of-the-art urea fertilizer production complex in Gode, Ethiopia.
EIH will hold a 40% equity stake under the partnership structure, while Dangote Group will retain 60% ownership of the transformative project that is one for the record books when it comes to industrial investments in the history of Ethiopia.
The thoughtful project will aid the establishment of the world’s largest single-site urea fertilizer production buildings, with manufacturing facilities guaranteeing a combined capacity of up to 3 million metric tons per annum. The complex will automatically be among the top 5 largest urea production complexes across the globe.
Both companies will work together to develop, own, build, operate, maintain, insure and sponsor the world-class urea fertilizer plants and associated infrastructure.
The comprehensive development includes standard gas transport pipelines to evacuate natural gas from Ethiopia’s Hilal and Calub reserves, storage facilities, logistics infrastructure, and export capabilities that will cater to regional and domestic markets.
The collaboration will also aid potential expansions, upgrades, and identical fertilizer production programmes in ammonia-based fertilizers, including ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, further sealing Ethiopia’s status as a regional fertilizer production hub.
According to Aliko Dangote, President/Chief Executive of Dangote Group, the collaboration further proves that the company is serious about industrializing the continent to guarantee food security across Africa.
He stated that Ethiopia’s many natural gas resources make it the best location for what is set to become one of the biggest fertilizer complexes across the globe.
“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 Hilal 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,” he said.
The Chief Executive Officer of Ethiopian Investment Holdings, Dr. Brook Taye, applauded the collaboration, describing it as a major feat in Ethiopia’s journey toward industrial independence and agricultural modernization.
He expressed confidence that the collaboration will benefit Ethiopian farmers, aid food security, and deliver major economic rewards for the country.
“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 Hilal 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,” he added.
The Gode fertilizer complex will play a major role in aiding the country’s agricultural sector, which employs more than 70% of the nation’s population.
The collaboration will leverage Dangote Group’s experience in large-scale industrial projects across the continent.
