Africa’s richest man, Aliko Dangote, has sealed a $2.5bn partnership with the Ethiopian Government to build one of the world’s largest single-site fertiliser plants in Gode, Somali Regional State.
The landmark deal was signed on Thursday between Dangote Group and Ethiopian Investment Holdings, the government’s strategic investment arm. Under the agreement, Dangote Group will hold 60 per cent equity, while EIH will retain 40 per cent.
EIH, in a statement cited by PUNCH Online on Thursday, said the facility would rank among the top five largest urea production complexes globally, with a combined capacity of up to three million metric tonnes per annum.
“The ambitious project will establish one of the world’s largest single-site urea fertilizer production complexes, with production facilities boasting a combined capacity of up to three million metric tons per annum,” EIH stated.
It added that the $2.5bn project, expected to be completed within 40 months, would also feature pipelines to transport natural gas from Calub and Hilala gas fields, with provisions for future expansions into ammonia-based fertilisers.
Chief Executive Officer of EIH, Dr Brook Taye, said: “This landmark agreement with Dangote Group marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency and agricultural modernization. As the strategic investment arm of the Government of Ethiopia, EIH is proud to secure a 40% stake in what will be one of the world’s largest urea production facilities.”
He added that the project would ensure energy security, boost productivity, and deliver “tremendous value to Ethiopian farmers.”
Ethiopian Prime Minister, Abiy Ahmed, also hailed the agreement in a statement on X on Thursday, describing it as a decisive step toward food sovereignty.
“Congratulations to all Ethiopians on another milestone in our journey toward food security and agricultural transformation. Today, we signed the Fertilizer Complex Shareholder Investment Agreement between Ethiopian Investment Holdings and Dangote Group. With an investment of $2.5 billion, this mega project will produce up to 3 million metric tons of fertilizer annually, placing Ethiopia among the largest producers globally,” he said.
He said the project would “create jobs locally, ensure a reliable fertilizer supply for our farmers who have long faced challenges, and mark a decisive step in our path to food sovereignty.”
On his part, Dangote said the venture aligned with his vision to industrialise Africa.
“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent.
“We are committed to bringing our decades of experience in large-scale industrial projects to ensure this venture becomes a cornerstone of Ethiopia’s industrial transformation and a catalyst for agricultural productivity throughout the region.” he said.
The billionaire added that the 60-40 partnership structure would guarantee “strong Ethiopian participation” in the project.
The plant is expected to create thousands of jobs, cut Ethiopia’s reliance on fertiliser imports, and position the country as a hub for exports across East Africa.
Dangote already operates Africa’s biggest fertiliser facility in Lagos, Nigeria, inaugurated in 2022, which produces three million tonnes of urea annually and has turned Nigeria into a major exporter of the product.
