Dangote Group to Build World-Class Fertilizer Plant Worth $2.5 Billion in Ethiopia
PulseNets reports that the strategic investment arm of the Government of Ethiopia, Ethiopian Investment Holdings (EIH), and Africa’s leading conglomerate, Dangote Group, have officially signed a far-reaching shareholders’ agreement to develop, construct and operate a state-of-the-art urea fertilizer production complex in Gode, Ethiopia.
According to details obtained by PulseNets, the partnership agreement gives EIH a 40 percent equity stake while Dangote Group secures 60 percent ownership, marking one of the most transformative industrial investments in Ethiopia’s history.
One of the World’s Largest Fertilizer Complexes
The ambitious project is designed to establish one of the world’s single largest urea fertilizer complexes, with facilities boasting a production capacity of up to three million metric tons annually. Once completed, the Gode plant will rank among the top five largest fertilizer production hubs globally, further positioning Ethiopia as a serious player in the international fertilizer market.
Under the agreement, PulseNets learnt that both companies will jointly develop, own, construct, operate, maintain, insure and finance the fertilizer complex and its associated infrastructure. This includes advanced natural gas pipelines to transport gas from Ethiopia’s Hilal and Calub reserves, as well as modern storage, logistics, and export facilities designed to supply both domestic farmers and regional markets across East Africa.
Expansion Plans and Diversification
The deal also provides room for future expansions and additional fertilizer initiatives in ammonia-based fertilizers, including ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, ensuring Ethiopia cements its role as a regional fertilizer hub.
Project development costs are capped at $2.5 billion, with completion targeted within 40 months of commencement. A key component involves building a dedicated pipeline infrastructure to move natural gas from Hilal and Calub directly to the Gode facility, guaranteeing long-term feedstock reliability and competitive pricing.
Dangote Group and EIH Leaders Speak
Speaking on the deal, Aliko Dangote, President and Chief Executive of Dangote Group, told PulseNets:
“This partnership with Ethiopian Investment Holdings is a pivotal step in our shared vision to industrialize Africa and strengthen food security across the continent. Gode’s strategic location, combined with Ethiopia’s abundant natural gas from Hilal and Calub, makes it the ideal site for what will become one of the world’s most advanced fertilizer complexes. We are bringing decades of industrial expertise to ensure this project becomes a cornerstone of Ethiopia’s transformation and a catalyst for agricultural productivity across East Africa.”
On his part, Dr Brook Taye, Chief Executive Officer of Ethiopian Investment Holdings, spoke to PulseNets, saying:
“This landmark agreement with Dangote Group is a major milestone in Ethiopia’s path toward industrial self-sufficiency and agricultural modernization. As the government’s strategic investment arm, we are proud to hold a 40 percent stake in one of the world’s largest fertilizer plants. The use of our Hilal and Calub gas reserves through dedicated pipelines guarantees long-term energy security and cost competitiveness. This partnership will deliver value to Ethiopian farmers, strengthen food security, and create lasting economic benefits for the country.”
Transforming Ethiopia’s Agriculture
Agriculture employs more than 70 percent of Ethiopia’s population, and the Gode fertilizer complex is expected to dramatically reduce dependence on fertilizer imports while creating thousands of direct and indirect jobs, particularly in the Somali Regional State.
By ensuring access to high-quality fertilizers at competitive prices, the project will boost crop yields, raise farmer incomes, and contribute directly to Ethiopia’s food security goals. With its three million metric ton annual capacity, the facility will surpass most existing global fertilizer plants, firmly placing Ethiopia in the top league of global producers.
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Industry analysts told PulseNets that this project not only transforms Ethiopia but also supports regional integration by providing a reliable fertilizer supply for neighbouring countries, reducing costly imports, and enhancing agricultural productivity across East Africa and beyond.
The partnership draws on Dangote Group’s proven record in mega-scale projects across Africa and EIH’s local expertise as the government’s investment vehicle. Together, they are setting a new benchmark for industrial investment, energy security, and agricultural transformation in Africa.
