ADDIS ABABA (Dawan Africa) – Ethiopian Investment Holdings (EIH) announced on Thursday that it has signed a shareholders’ agreement with Nigeria’s Dangote Group to develop, construct, and operate a urea fertilizer complex in Gode, Somali Regional State.
According to EIH, the project is valued at $2.5 billion, making it one of the largest industrial investments in Ethiopia’s history. Under the agreement, EIH will hold a 40% equity stake, while Dangote Group will retain 60%.
EIH said the facility will have a planned capacity of up to three million metric tons of urea per year, positioning it among the top five single-site urea production complexes worldwide. The development will include a pipeline to transport natural gas from the Hilala and Calub fields, along with associated logistics and storage facilities.
The investment arm noted that the agreement also provides for future expansion into other ammonia-based fertilizers, including ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate.
Project development costs are estimated at $2.5 billion, with completion targeted within 40 months of commencement, according to EIH. The institution added that the facility will reduce Ethiopia’s reliance on imported fertilizers, create thousands of jobs in the Somali Region, and strengthen national food security.
Prime Minister Abiy Ahmed, in a statement posted on his official X account, described the agreement as a transformative step for the agricultural sector:
“We have started this journey, and we will finish it for our farmers, for our economy, and for Ethiopia’s future.”
EIH stated that agriculture employs more than 70% of Ethiopia’s population, and reliable access to locally produced fertilizer will boost productivity, improve farmer incomes, and enhance export potential. The project is also expected to support regional integration by supplying fertilizers to neighboring countries.
According to EIH, the sovereign wealth fund was established in 2021 to manage and optimize state-owned commercial assets. It oversees more than 40 enterprises, including Ethiopian Airlines, Ethio Telecom, Commercial Bank of Ethiopia, and Ethiopian Shipping and Logistics.
Dangote Group is Africa’s largest industrial conglomerate, with operations in cement, fertilizers, petrochemicals, and other sectors across the continent.
