Dangote, Ethiopia Sign $2.5B Fertilizer Plant Deal in Gode

Ethiopia and Africa’s richest man, Aliko Dangote, have signed a $2.5 billion joint venture agreement to build one of the largest urea fertilizer production complexes in Gode, Somali region, Ethiopia. The facility, expected to produce up to three million metric tons annually, aims to reduce Ethiopia’s heavy reliance on costly fertilizer imports and boost its agricultural productivity, potentially positioning the country among the top five global urea producers. Ethiopian Investment Holdings (EIH) will hold a 40% stake, while Dangote Group will own 60%, and the project includes infrastructure such as a natural gas pipeline from local gas fields to the plant. This initiative is hailed as a historic milestone toward Ethiopia’s food security, job creation, and agricultural transformation, reflecting a strategic push for industrial self-sufficiency and enhanced competitiveness in Africa. The project also envisions future expansion into other ammonia-based fertilizers, further supporting Ethiopia’s agrarian economy, which employs over 70% of the population. Construction is expected to be completed within approximately 40 months, marking a significant step in Ethiopia’s economic development and industrialization efforts.