Dangote to fund new urea plant

ETHIOPIA

Dangote to fund new urea plant

Aliko Dangote, self-styled “Africa’s richest man”, has signed a $2.5 billion partnership with the Ethiopian Government to build one of the world’s largest single-site fertiliser plants in Gode, Somali Regional State. The was signed on August 28th by Dangote Group and Ethiopian Investment Holdings, the government’s strategic investment arm. Under the agreement, Dangote Group will hold a controlling 60% equity share, with EIH taking the remaining 40%. EIH says that the facility will be “among the top five largest urea production complexes globally… with production facilities boasting a combined capacity of up to three million metric tons per annum.” The project will take gas feedstock via pipeline from the Calub and Hilala gas fields, with provisions for future expansions into ammonia-based fertilisers.

Chief Executive Officer of EIH, Dr Brook Taye, said: “This landmark agreement with Dangote Group marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency and agricultural modernisation. As the strategic investment arm of the Government of Ethiopia, EIH is proud to secure a 40% stake in what will be one of the world’s largest urea production facilities.” He added that the project would ensure energy security, boost productivity, and deliver “tremendous value to Ethiopian farmers.”

Akilo Dangote said that the venture aligned with his vision to industrialise Africa. “This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent. We are committed to bringing our decades of experience in large-scale industrial projects to ensure this venture becomes a cornerstone of Ethiopia’s industrial transformation and a catalyst for agricultural productivity throughout the region.” he said.