Dangote Group has signed a $2.5 billion agreement with Ethiopian Investment Holdings (EIH) to construct a urea fertilizer plant in Gode, Somali Regional State, with plans to produce up to 3 million metric tonnes annually, Reuters reported.
The deal gives Dangote a 60% stake in the project, while EIH retains 40% ownership, as highlighted by the same source. Prime Minister Abiy Ahmed and EIH CEO Brook Taye were present at the signing, underscoring the project’s national significance.
Industry analysts note that once operational, the facility will rank among the largest single-site urea production plants globally, strengthening Ethiopia’s food security strategy and reducing reliance on costly fertilizer imports, the coverage detailed.
The plant’s location near the Ethiopia–Djibouti corridor positions it to serve both domestic and regional markets, enhancing Ethiopia’s trade capacity under the African Continental Free Trade Area (AfCFTA), the report indicated.
