Ethiopian Investment Holdings (EIH) and Nigeria’s Dangote Group have signed a $2.5 billion agreement to build a major urea fertilizer production complex in Gode, Somali Regional State, in a move to enhance Ethiopia’s agricultural productivity and food security.

The deal, finalized in the presence of Prime Minister Abiy Ahmed and Aliko Dangote, Chairman of Dangote Group, assigns EIH a 40% stake and Dangote Group a 60% stake in the project.

The facility, set to produce three million metric tons of urea annually, will rank among the world’s top five largest urea complexes and become Ethiopia’s largest ever.

It includes fertilizer plants, a pipeline to tap natural gas from the Calub and Hilala fields, and potential expansion into ammonia-based fertilizers like ammonium nitrate.

“This agreement is a pivotal moment in our shared vision to industrialize Africa and achieve food security,” said Aliko Dangote, highlighting Gode’s strategic location and gas reserves.

EIH CEO Brook Taye called it “a significant milestone” for Ethiopia’s industrial and agricultural self-sufficiency, emphasizing the use of domestic gas for cost competitiveness.

The project addresses Ethiopia’s chronic fertilizer shortages, which have doubled in cost over the past year, threatening farmers’ livelihoods.

Prime Minister Abiy, who first announced plans for the plant in July 2025, said it would create jobs and ensure a reliable fertilizer supply, stating, “This is a decisive step in our path to food sovereignty.”

The complex, expected to be operational in 40 months, will also supply fertilizers to neighboring countries, boosting regional economic ties.

Agriculture, employing over 70% of Ethiopia’s population, stands to gain from improved fertilizer access, potentially increasing crop yields and reducing food insecurity. The deal builds on Dangote’s existing cement plant in Ethiopia and marks EIH’s growing role in strategic investments.

While the project’s success hinges on timely construction and gas supply stability, it positions Ethiopia as a key player in regional agricultural markets while addressing critical challenges for its farmers.