Africa’s largest industrial conglomerate announces transformative $2.5 billion investment in Ethiopian fertilizer production, establishing one of the world’s largest single-site urea manufacturing complexes with three million metric tons annual capacity.
The strategic partnership between Dangote Group (60% equity) and Ethiopian Investment Holdings (40% equity) represents one of Ethiopia’s largest industrial investments while demonstrating significant private sector confidence in African manufacturing potential. The comprehensive project includes advanced infrastructure for natural gas transportation from Ethiopia’s Hilal and Calub reserves.
Economic implications extend far beyond fertilizer production, with the facility expected to create thousands of direct employment opportunities while generating substantial indirect economic benefits across logistics, transportation, and supporting service sectors. Completion within 40 months from commencement positions the project among Africa’s fastest large-scale industrial developments.
Dangote Group President Aliko Dangote emphasized the project’s alignment with continental industrialization objectives, noting Ethiopia’s strategic location and abundant natural gas resources create ideal conditions for world-class fertilizer production. The initiative supports Africa’s agricultural productivity enhancement while reducing dependence on imported fertilizers.
Ethiopian Investment Holdings CEO Dr. Brook Taye described the agreement as a “significant milestone” in Ethiopia’s industrial transformation journey, highlighting the project’s potential to position Ethiopia as a regional fertilizer production hub while enhancing national food security capabilities.
The facility will rank among the top five largest urea production complexes globally, demonstrating African industrial capacity to compete at international scale. Production capabilities include potential expansion into ammonia-based fertilizers such as ammonium nitrate and ammonium sulfate, further strengthening regional agricultural input supply chains.
Dedicated pipeline infrastructure ensures reliable, cost-effective feedstock supply from proven gas reserves, providing long-term operational sustainability while maximizing Ethiopia’s natural resource utilization. This integrated approach reduces production costs while ensuring consistent supply availability for domestic and export markets.
Regional agricultural productivity improvements from increased fertilizer availability could impact food security across East Africa while generating substantial export revenues for Ethiopia’s economy.
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