Nigerian billionaire Aliko Dangote, through Dangote Group, has signed a $2.5 billion agreement with the Ethiopian government to construct a massive urea fertilizer production complex in Gode, Somali Regional State, aimed at transforming Ethiopia’s agricultural sector. The deal, formalized on August 28, 2025, in Addis Ababa, grants Dangote a 60% stake, with the state-owned Ethiopian Investment Holdings (EIH) holding 40%, as announced by Prime Minister Abiy Ahmed. The plant, expected to produce 3 million metric tons annually, will be linked by pipeline to the Calub and Hilala natural gas fields, reducing Ethiopia’s reliance on imported fertilizers and boosting food security, with completion targeted within 40 months. Prime Minister Ahmed hailed the project as a “milestone in our journey toward food sovereignty,” while Dangote called it a “pivotal moment” for industrializing Africa.
The strategic choice of Gode leverages its proximity to natural gas reserves and improved regional stability, with the project expected to create thousands of jobs and position Ethiopia as a regional fertilizer hub under the African Continental Free Trade Area (AfCFTA), according to Addis Insight. EIH CEO Brook Taye emphasized alignment with national priorities, noting the plant’s potential to save billions in import costs, as Ethiopia currently spends heavily on 765,000 metric tons of fertilizer annually, per Finance in Africa. The agreement also outlines potential expansions into ammonia-based fertilizers, further strengthening Ethiopia’s agricultural productivity. Despite some sources citing a $3 billion figure, the consensus confirms $2.5 billion as the accurate investment amount, with no conflicting details on the project’s scope or timeline.
