Dangote Group to build a $ 2.5 billion fertilizer factory in Ethiopia

Ethiopian Investment Holdings (EIH), the strategic investment arm of the Ethiopian government, and Dangote Group has signed a comprehensive shareholder agreement on the construction of world -class urea fertilizer production complex in the African horn.

Under the partnership structure, EIH will hold 40% of the Dangote Group equity shares will maintain 60% of transformative project ownership representing one of the largest industrial investments in Ethiopian history.

The ambitious project will form one of the urea fertilizer production complexes, one of the largest sites in the world, with a production facility for a combination of three million tons per year.

This facility will be ranked among the five largest urea production complexes globally.

Both companies will jointly develop, own, build, operate, maintain, ensure, and finance sophisticated urea fertilizer and related infrastructure.

Comprehensive development includes sophisticated gas transportation pipelines to evacuate natural gas from hilal and calub ethiopia reserves, storage facilities, logistics infrastructure, and export capabilities designed to serve domestic and regional markets.

This agreement also provides potential expansion, improvement, and initiative of similar fertilizer production in ammonia -based fertilizer, including ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, further strengthens the position of Ethiopia as the center of regional fertilizer production.

Project development costs are estimated at $ 2.5 billion, with a completion targeted within 40 months since the start.

The significant component of this investment includes the construction of special pipe infrastructure to transport natural gas from gas and gas reserves that are proven from Ethiopia to Gode production facilities, ensuring the supply of reliable and cost -effective raw materials for the fertilizer complex.

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This substantial investment underlined the commitment of the two companies to change the Ethiopian agriculture sector and increase food security in all regions. The project is expected to significantly reduce Ethiopia’s dependence on fertilizer imports while creating thousands of direct and indirect employment opportunities in the Somali regional state and its surroundings.

In his words, the President/Head of the Dangote Group Executive, Alhaji Aliko Dangote, said: Partnership with Ownership of Ethiopia Investment is an important moment in our joint vision for African industrialization and achieve food safety throughout the continent.

“Gode’s strategic location, combined with abundant Ethiopian natural gas resources from hilal and calub reserves, makes this is the ideal location for what will be one of the largest fertilizer complexes in the world.

“We are committed to bringing our decades of experience in large-scale industrial projects to ensure this business is the basis for the transformation of the Ethiopian and catalyst industry for agricultural productivity in all regions. The 60-40 partnership structure reflects our commitment to this transformative project while ensuring strong Ethiopian participation.”

Brook Taye, Head of Executive of Ethiopian Investment Ownership, added: “The Tengara Agreement with Dangote Group marks an important milestone in the journey of Ethiopia towards industrial independence and agricultural modernization. Like strategic investment from Ethiopia that is very good. Increase our agricultural productivity while positioning Ethiopia as a regional center for fertilizer production.

Babajide Okeowo