Ethiopia partners with Dangote Group on $2.5bn fertiliser project

Ethiopia and Nigeria’s Dangote Group have signed a $2.5 billion shareholders’ agreement to build a world-scale urea fertiliser production complex in Gode, Somali Region. The project is expected to deliver up to 3 million metric tonnes of urea per year, will make the site one of the largest urea plants in the world and marks a major milestone in Africa’s push for fertilizer independence.

Ownership and financing

Under the agreement signed in Addis Ababa, the state investment vehicle Ethiopian Investment Holdings (EIH) will hold 40%, while Dangote Group will take a 60% stake. The partners will jointly finance, construct, and operate the complex.

Scale and timeline

Designed with a capacity of 3 million metric tonnes annually, the Gode facility is positioned among the top five global urea production complexes. Industry reports estimate a 40-month construction period from financial close to commissioning.

Leaders speak

Prime Minister Abiy Ahmed described the agreement as “a decisive step in our path to food sovereignty.”

Dangote Group emphasised that the project reflects a “shared vision to industrialise Africa and achieve food security across the continent.”

Why it matters

• Food security: Ethiopia will reduce fertiliser imports, stabilise supply and prices, and strengthen agricultural productivity.
• Industrialisation: The project adds heavy chemical manufacturing capacity and stimulates infrastructure development in the Somali Region.
• Regional trade: With such capacity, Ethiopia could become a key fertiliser exporter to East Africa.

Economic and social impact

The complex is expected to generate thousands of jobs during construction and operations, boost logistics and service industries, and create foreign-exchange earnings for Ethiopia.

Challenges ahead

The success of the project will depend on securing natural gas feedstock, financing, and transport logistics for exports. Transparent procurement, robust environmental safeguards, and local content integration will be critical to long-term sustainability.

What’s next

EIH and Dangote will now move towards financial close, gas supply contracts, and implementation timetables. Once commissioned, the project will place Ethiopia at the centre of Africa’s fertilizer revolution.