By Stanley Onyeka, Lagos
Ethiopian Investment Holdings (EIH), a Government-owned strategic investment company, and Dangote Group have announced the signing of a comprehensive shareholders’ agreement to develop, construct, and operate a world-class urea fertilizer production complex in Gode, Ethiopia.
Under the partnership structure, EIH will hold a 40% equity stake while Dangote Group will maintain 60% ownership of the transformative project that represents one of the largest industrial investments in Ethiopian history, according to a statement from Dangote.
It said the ambitious project will establish one of the world’s largest single-site urea fertilizer production complexes, with production facilities boasting a combined capacity of up to three million metric tons per annum.
The facility will rank among the top five largest urea production complexes globally, it added.
Under the agreement, the two companies will jointly develop, own, construct, operate, maintain, insure, and finance the state-of-the-art urea fertilizer plants and associated infrastructure. The comprehensive development includes advanced gas transport pipelines to evacuate natural gas from Ethiopia’s Hilal and Calub reserves, storage facilities, logistics infrastructure, and export capabilities designed to serve both domestic and regional markets.
It also provides for potential expansions, upgrades, and similar fertilizer production initiatives in ammonia-based fertilizers, including ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, further cementing Ethiopia’s position as a regional fertilizer production hub.
The Project Development Costs are estimated not to exceed $2.5 billion, with completion targeted within 40 months from commencement.
The project is expected to transform Ethiopia’s agricultural sector and enhance food security across the region, while significantly reducing the country’s dependence on fertilizer imports and creating thousands of direct and indirect jobs in the Somali Regional State and beyond.
This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent.
President/Chief Executive of Dangote Group, Aliko Dangote, was quoted as saying: “This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent.
“The strategic location of Gode, combined with Ethiopia’s abundant natural gas resources from the Hilal and Calub reserves, makes this an ideal location for what will become one of the world’s largest fertilizer complexes.
“We are committed to bringing our decades of experience in large-scale industrial projects to ensure this venture becomes a cornerstone of Ethiopia’s industrial transformation and a catalyst for agricultural productivity throughout the region.
“The 60-40 partnership structure reflects our commitment to this transformative project while ensuring strong Ethiopian participation.”
Similarly, Chief Executive Officer, Ethiopian Investment Holdings, Dr. Brook Taye, said: “This landmark agreement with Dangote Group marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency and agricultural modernization.
“As the strategic investment arm of the Government of Ethiopia, EIH is proud to secure a 40% stake in what will be one of the world’s largest urea production facilities.
“The project aligns perfectly with our national development priorities and will substantially enhance our agricultural productivity while positioning Ethiopia as a regional hub for fertilizer production.”
