Ethiopian Investment Holdings (EIH), the strategic investment arm of the Government of Ethiopia, has signed a shareholders’ agreement with Dangote Group to construct and operate a world-class urea fertilizer production complex in Gode, Ethiopia.

Under the agreement, Dangote Group will hold 60 percent equity, while EIH will retain 40 percent ownership of the project, which is considered one of the largest industrial investments in Ethiopia’s history.

Group Chief Branding and Communications Officer, Dangote Industries Limited, Anthony Chiejina, who announced the development, said the facility would become one of the world’s largest single-site urea fertilizer production complexes. With an annual production capacity of up to three million metric tons, it will rank among the top five globally.

According to him, the agreement covers the joint development, ownership, construction, operation, maintenance, and financing of the fertilizer plant and related infrastructure. This includes advanced gas transport pipelines to evacuate natural gas from Ethiopia’s Hilal and Calub reserves, storage facilities, logistics systems, and export infrastructure to serve both domestic and regional markets.

Chiejina explained that the agreement also makes room for future expansions into ammonia-based fertilizers such as ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, thereby positioning Ethiopia as a regional fertilizer hub.

The $2.5 billion project is expected to be completed within 40 months. A major part of the investment will be dedicated to building a dedicated pipeline to transport natural gas from the Hilal and Calub reserves to the Gode plant, ensuring steady and cost-effective feedstock supply.

Chiejina stressed that the investment reflects both companies’ commitment to transforming Ethiopia’s agricultural sector and boosting food security in the region.

He added that the complex would help Ethiopia cut down on fertilizer imports, while creating thousands of direct and indirect jobs in the Somali Regional State.

Dangote Group President and Chief Executive, Aliko Dangote, described the partnership as a milestone in Africa’s push for industrialisation and food security.

“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent,” Dangote said.

“The strategic location of Gode, combined with Ethiopia’s abundant natural gas resources, makes it ideal for one of the world’s largest fertilizer complexes. We are committed to leveraging our decades of experience in large-scale industrial projects to make this venture a cornerstone of Ethiopia’s industrial transformation.”

Chief Executive Officer of EIH, Dr. Brook Taye, said the project would accelerate Ethiopia’s drive toward industrial self-sufficiency and agricultural modernization.

“This landmark agreement marks a significant milestone in Ethiopia’s journey toward industrial self-reliance,” Taye stated.

“By securing a 40 percent stake, we ensure strong Ethiopian participation in a facility that will not only improve agricultural productivity but also position the country as a major regional hub for fertilizer production.”

He added that utilizing Ethiopia’s gas reserves through dedicated pipeline infrastructure guarantees energy security and cost competitiveness for decades. The project, he said, would provide Ethiopian farmers with reliable access to quality fertilizers, boost crop yields, and enhance food security while creating economic opportunities.