Ethiopian Investment Holdings (EIH) and Dangote Group have entered into a shareholders’ agreement to develop a large-scale urea fertilizer production complex in Gode, Ethiopia.

The agreement grants Dangote Group a 60 percent stake in the project, while EIH will hold 40 percent. Estimated at up to USD 2.5 billion, the project is among the largest industrial investments in Ethiopia and is scheduled for completion within 40 months of commencement.

The complex will have a production capacity of up to three million metric tons of urea per year, placing it among the world’s top facilities of its kind. In addition to fertilizer production plants, the project includes the construction of a pipeline to transport natural gas from the Calub and Hilala gas fields, which will serve as the facility’s primary energy source. The agreement also outlines provisions for potential expansions into other ammonia-based fertilizers, such as ammonium nitrate and ammonium sulfate, to broaden output.

The project is expected to significantly reduce Ethiopia’s dependence on fertilizer imports and improve the availability of affordable inputs for farmers. It is also anticipated to create thousands of direct and indirect jobs in the Somali Regional State and contribute to the country’s broader industrialization efforts.

Given that agriculture employs over 70 percent of Ethiopia’s population, the Gode complex could play an important role in improving productivity, supporting food security, and positioning Ethiopia as a regional fertilizer supplier within East Africa.

Source (including image): Ethiopian Investment Holdings