Dangote Group and Ethiopian Investment Holdings have announced an increase in project investment, bringing the total to over US$4 billion and allowing for additional project infrastructure.
Ethiopian Prime Minister Abiy Ahmed and Nigerian billionaire Aliko Dangote visited the under-construction fertilizer production complex in Gode, Somali Region, where officials announced that the investment has expanded from an initial US$2.5 billion to more than US$4 billion.
The project, a joint venture (JV) between Dangote Group and Ethiopian Investment Holdings, will feature additional infrastructure including a 110 km natural gas pipeline from the Calub gas field in the Ogaden Basin; a 120 MW power plant; a 2 million t NPK blending plant; and a polypropylene packaging facility.
In a statement following the visit, Abiy said:“[the initiative] represents far more than infrastructure,” going on to say it was “a strategic investment in Ethiopia’s agricultural transformation, food security, industrial growth, and economic self-reliance.”
“Once completed, the fertilizer plant will play a vital role in strengthening local production capacity, reducing dependence on imports, supporting millions of farmers, and creating new opportunities for jobs and investment,” Abiy added.
According to the Prime Minister, progress at the site has prompted efforts to accelerate completion ahead of the original 40-month construction timeline.
Dangote Group, which holds a 60% stake in the project while Ethiopian Investment Holdings retains 40%, said the increase in investment reflects the project’s expanded scope.
The fertilizer complex is expected to produce up to 3 million tpy of urea, positioning it among the world’s largest single-site urea production facilities. The project is also expected to leverage natural gas supplies secured through a 25-year agreement between Dangote Group and China’s GCL Group, valued at approximately US$4.2 billion in earlier reports.