Dangote Group, owned by and bearing the name of Africa's richest man, plans to invest $2.5bn to construct a fertiliser complex in Gode, Somali Regional State, through a 60/40 joint venture with Ethiopian Investment Holdings (EIH), Hallmark News has reported. 

Expected to be one of the five largest single-site urea plants in the world, the complex is scheduled for completion within 40 months. The facility will target annual production of up to 3mn tonnes of urea.  It will be supplied by new pipelines connected to the Calub and Hilala gas fields and could be expanded to include ammonia-based production.

EIH Chief Executive Brook Taye described the agreement with the Nigerian group, whose assets include an oil refinery and cement plants, as “a significant milestone” towards industrial self-sufficiency, adding it would provide “tremendous value to Ethiopian farmers,” according to Hallmark News. Prime Minister Abiy Ahmed stated that the investment would generate employment, ensure supply reliability and support Ethiopia’s “path to food sovereignty.”

Ethiopia currently relies heavily on fertiliser imports, placing strain on foreign currency reserves. A domestic gas-powered facility is expected to stabilise supply, reduce dependency and potentially position the country as a regional exporter. The state’s 40% equity share through EIH aligns the project with national goals on food security and industrial growth, which may ease regulatory approvals and infrastructure access.

The Gode complex follows Dangote Group’s model from Nigeria, where its Lagos fertiliser plant, commissioned in 2022, produces approximately 3mn tonnes of urea per year and has helped position Nigeria as a major exporter. The Ethiopian project leverages similar gas reserves and agricultural demand in the local market.

Thousands of jobs are expected to be created during both construction and operations. While Dangote Group will retain operational control, Ethiopia’s equity stake ensures a significant national interest in the project. The use of domestic gas is intended to lower input costs and improve supply chain resilience.

“This partnership … represents a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent,” said Aliko Dangote, Chairman of Dangote Group, committing to bring “decades of experience in large-scale projects” to support Ethiopia’s industrial objectives.