Ethiopia has signed an agreement with Nigeria’s Dangote Group to construct $2.5 billion Gode Fertiliser Plant. This information was revealed by Ethiopia’s Prime Minister Abiy Ahmed on Thursday in a post on social media platform X.
Furthermore, this mega investment is part of Nigerian billionaire Aliko Dangote’s efforts which seeks to end Africa’s fertiliser imports. Also, this project will be part of Dangote’s expansion into Africa and economic empowerment in the region. One of the major investments owned by Dangote in the continent include the largest oil refinery in Africa.
Project Factsheet
Location: Gode, Ethiopia
Cost: Approximately $2.5 billion
Capacity: The facility is designed to have an annual production capacity of up to 3 million metric tons of urea. This would make it one of the largest single-site urea production complexes in the world.
Product: The plant will primarily produce urea fertilizer, with potential for future expansion into other ammonia-based fertilizers such as ammonium nitrate and ammonium sulfate.
Timeline: Construction is targeted for completion within 40 months from the start of the project.
Partnership: A joint venture between Dangote Group (60% ownership) and Ethiopian Investment Holdings (EIH) (40% ownership).
Objective: To reduce Ethiopia’s reliance on imported fertilizer, enhance agricultural productivity, and position the country as a regional hub for fertilizer production and export.
Importance:
- Economic Impact: The project is expected to significantly benefit Ethiopia’s agricultural sector, which employs over 70% of the population. Additionally, by providing a stable and affordable supply of fertilizer, it aims to boost crop yields, improve farmer incomes, and contribute to national food security.
- Industrialization: The Gode fertilizer plant represents one of the largest industrial investments in Ethiopia’s history and aligns with the government’s Homegrown Economic Reform II (HGER II) plan. It is expected to create thousands of direct and indirect jobs and stimulate economic activity in the region.
Location of the Fertiliser Plant
Additionally, this mega fertiliser plant will be located in Gode town in Ethiopia’s Southeastern side. The plant will produce 3 million metric tons of fertiliser a year, Abiy further revealed.
The agreement that will foresee the construction of the fertiliser plant was signed by state-owned Ethiopian Investment Holdings (EIH) and Dangote Group.
Shareholders’ Stake
Ethiopia will hold a 40% stake in the venture. On the other hand, Dangote Group will own 60%. EIH Chief Executive Brook Taye revealed this information at the signing ceremony in Addis Ababa.
Also, an EIH statement on X quoted billionaire Dangote as saying that the investment represented a “shared vision to industrialise Africa and achieve food security across the continent”.
Similar Project
African countries are making steps in developing local fertilizer hubs and plants in order to cut dependence on imports. Likewise, Ghana has received $5 billion investment that will foresee the establishment of a fertilizer hub at Atuabo. The development of these fertilizer projects showcase the steps African countries are making to cut foreign dependence and make fertilizer easily accessible to farmers by local production.
