Major move to industrialize Africa's agriculture and enhance food security has led Dangote Group and the Government of Ethiopia, through its strategic investment arm Ethiopian Investment Holdings (EIH), following a shareholder agreement to build a world-class urea fertilizer production complex, reports ITREALMS.
The ambitious project, valued at up to $2.5 billion, will be one of the largest industrial investments in Ethiopian history. It will establish a single-site urea fertilizer complex in Gode, with a massive production capacity of up to 3 million metric tons per annum. This scale will place the facility among the top five largest urea complexes globally.
Under the partnership, the Dangote Group will maintain 60% ownership, with EIH holding a 40% equity stake.
Under the partnership, the Dangote Group will maintain 60% ownership, with EIH holding a 40% equity stake.
The joint venture, ITREALMS gathered, will develop, construct, and operate the facility and all associated infrastructure.
This includes building advanced gas pipelines to transport natural gas from Ethiopia's Hilal and Calub reserves to the plant, ensuring a reliable and cost-effective feedstock supply.
According to Aliko Dangote, President/CEO of the Dangote Group, this partnership is a "pivotal moment" in the shared vision to industrialize Africa and achieve food security.
According to Aliko Dangote, President/CEO of the Dangote Group, this partnership is a "pivotal moment" in the shared vision to industrialize Africa and achieve food security.
He highlighted that the strategic location of Gode and Ethiopia's abundant natural gas resources make it an ideal location for the complex.
The CEO of Ethiopian Investment Holdings, Dr. Brook Taye, said that the project aligns perfectly with Ethiopia's national development priorities.
The CEO of Ethiopian Investment Holdings, Dr. Brook Taye, said that the project aligns perfectly with Ethiopia's national development priorities.
He noted that the plant will not only substantially enhance the country's agricultural productivity but also position it as a regional hub for fertilizer production.
The project is expected to significantly reduce Ethiopia's dependence on fertilizer imports, boost crop yields for the over 70% of the population employed in agriculture, and create thousands of direct and indirect jobs.
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The facility will play a crucial role in supporting food security objectives across the country and the wider East African region.
The completion is targeted within 40 months.
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