Ethiopia has signed a landmark $2.5 billion agreement with Dangote Group to build a state-of-the-art urea fertiliser production complex in Gode, southeastern Ethiopia.

The project will produce 3 million metric tons per year, positioning Ethiopia among the top fertiliser producers in Africa. Under the agreement, Dangote Group will hold 60% equity, while Ethiopian Investment Holdings (EIH) retains 40%. The complex will use gas from Ethiopia’s Calub and Hilala fields, connected through newly constructed pipelines.

This mega-project aims to boost local fertiliser availability, reduce import dependence, and strengthen Ethiopia’s food security.

 

The country currently imports a majority of its fertiliser, draining foreign reserves and exposing farmers to price fluctuations. Once operational, the Dangote Fertiliser Complex is expected to not only meet domestic demand but also supply neighbouring markets across East and Horn of Africa.

 

Ethiopian officials say the project will create thousands of jobs and catalyse new industrial linkages in transport, energy, and agriculture. The plant, expected to be completed in around 40 months, follows Dangote’s massive success in Nigeria, where his $2.5 billion fertiliser plant now ranks among the largest in the world.

 

The Ethiopian facility cements the nation’s emergence as a regional fertiliser hub, signalling a major step toward agricultural self-reliance and economic diversification.