Ethiopian Investment Holdings and Dangote Group Sign Landmark Agreement for Major Fertilizer Complex in Gode

Ethiopian Investment Holdings (EIH), the government’s strategic investment entity, and the Dangote Group have formalized a groundbreaking partnership to develop, build, and operate a state-of-the-art urea fertilizer production facility in Gode, Ethiopia. Under the terms of the new shareholders’ agreement, Dangote Group will hold a 60% ownership stake, while EIH will retain 40%, making this one of the most significant industrial ventures in Ethiopia’s history.

A Global-Scale Fertilizer Complex

The planned facility is set to become one of the largest single-site urea production complexes worldwide, with an annual production capacity of up to 3 million metric tons. Once operational, it will rank among the top five largest urea production sites globally.

As outlined in the agreement, both parties will collaborate on the development, ownership, financing, construction, and operation of the complex. The scope includes not just production plants, but also critical supporting infrastructure such as gas pipelines to transport natural gas from Ethiopia’s Hilal and Calub reserves, extensive storage capabilities, logistics infrastructure, and export channels targeting both domestic and regional markets.

Additionally, the agreement includes provisions for future expansions and diversification into other fertilizer products, such as ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate — reinforcing Ethiopia’s ambition to become a regional fertilizer manufacturing powerhouse.

$2.5 Billion Investment with Strategic Pipeline Infrastructure

The total development cost of the project is projected at up to $2.5 billion, with construction expected to be completed within 40 months from the project’s start. A major component of the investment will go toward building a dedicated natural gas pipeline from the Hilal and Calub fields to the Gode facility, ensuring stable, cost-effective feedstock for fertilizer production.

This large-scale industrial initiative is anticipated to significantly reduce Ethiopia’s reliance on imported fertilizers, boost local agricultural productivity, and generate thousands of jobs — both directly and indirectly — particularly within the Somali Regional State.

Statements from Project Leaders

Aliko Dangote, President and CEO of Dangote Group, remarked:
“This partnership with EIH marks a critical milestone in our shared goal to industrialize Africa and ensure long-term food security. Gode’s strategic location and Ethiopia’s abundant gas reserves provide an ideal setting for one of the world’s largest fertilizer complexes. We are proud to invest in a project that will drive agricultural transformation, create jobs, and support economic growth across the region. Our 60-40 partnership model reflects our commitment to inclusive development and long-term collaboration with Ethiopia.”

Dr. Brook Taye, CEO of Ethiopian Investment Holdings, stated:
“This agreement represents a historic step toward Ethiopia’s industrial and agricultural self-reliance. Securing a 40% stake in this mega-project reflects our commitment to transforming the country’s fertilizer sector and enhancing food security. By tapping into our domestic gas reserves with dedicated infrastructure, we ensure energy independence and competitive production costs. This venture aligns with Ethiopia’s development priorities and will deliver lasting benefits for our farmers, economy, and broader region.”

Strategic and Regional Impact

Ethiopia’s agricultural sector, which employs over 70% of its population, is poised to benefit significantly from this project. With consistent access to high-quality, competitively priced fertilizers, farmers are expected to see increased yields and higher incomes, strengthening national food security.

The Gode complex’s massive scale not only positions Ethiopia as a key player in the global fertilizer market but also establishes it as a central supplier within Africa. The project draws on Dangote Group’s vast experience in delivering large-scale industrial infrastructure across the continent, combined with EIH’s strategic role and local expertise.

Moreover, the direct pipeline access to Hilal and Calub reserves ensures long-term feedstock stability and cost efficiency, enhancing the complex’s competitiveness globally. The project also supports broader regional integration goals by enabling the export of fertilizers to neighboring countries, thereby boosting agricultural output and lowering import dependence across East Africa.