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August 28, 2025

Ethiopia Partners with Dangote to Build One of the World’s Largest Fertilizer Complexes

Politic

By

Addis Insight

Ethiopia Partners with Dangote to Build One of the World’s Largest Fertilizer Complexes











ADDIS ABABA, Ethiopia – Ethiopian Investment Holdings (EIH), the government’s sovereign investment arm, has signed a landmark agreement with Nigeria’s Dangote Group to build a multi-billion-dollar fertilizer complex in Gode, Somali Regional State. The project, one of the largest industrial investments in Ethiopia’s history, is designed to transform the country’s agriculture and reduce reliance on imports.

Project Overview

The mega facility will rank among the top five largest urea fertilizer complexes worldwide, with an annual capacity of up to three million metric tons. The site will draw on natural gas from Ethiopia’s Hilala and Calub reserves, delivered via a dedicated pipeline, ensuring stable supply and cost efficiency.

Beyond urea, the agreement outlines expansions into ammonia-based fertilizers such as ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate—positioning Ethiopia as a future fertilizer hub for Africa.

Investment and Timeline

Total Investment: Up to $2.5 billion

Ownership: Dangote Group (60%), EIH (40%)

Timeline: Completion targeted in 40 months

Jobs: Thousands of direct and indirect roles expected

The project is designed to significantly cut Ethiopia’s fertilizer imports while unlocking new opportunities for farmers and exporters.

Leaders’ Perspectives

Aliko Dangote, Chairman of Dangote Group:

“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security. Gode’s strategic location and Ethiopia’s natural gas reserves make it an ideal site for one of the world’s largest fertilizer complexes.”

Dr. Brook Taye, CEO of Ethiopian Investment Holdings:

“This landmark deal aligns perfectly with our national development priorities. It will enhance Ethiopia’s agricultural productivity, ensure energy security, and deliver tremendous value for farmers while positioning Ethiopia as a regional fertilizer hub.”

Strategic Impact

Agriculture employs over 70% of Ethiopia’s population, making fertilizer access a critical driver of food security and economic growth.

Key benefits include:

Reliable supply of competitively priced fertilizers

Boosted crop yields and farmer incomes

Reduced dependence on costly imports

Expanded exports to neighboring countries

The project also supports Ethiopia’s goal of becoming a regional trade and investment hub, while contributing to Africa’s broader agricultural self-sufficiency agenda.

About the Partners

Ethiopian Investment Holdings (EIH):Established in 2021, EIH manages Ethiopia’s largest state-owned enterprises, including Ethiopian Airlines, Ethio Telecom, and Commercial Bank of Ethiopia. It acts as the government’s strategic investment arm to attract capital and optimize national assets.

Dangote Group:Africa’s leading industrial conglomerate, Dangote Group operates across cement, fertilizer, petrochemicals, and key infrastructure sectors. The company is renowned for spearheading large-scale industrial projects across the continent.

👉 With construction soon to begin, the Gode fertilizer complex marks a turning point for Ethiopia’s industrial future—blending natural resource wealth with strategic investment to fuel the country’s next phase of growth.

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