Dangote Group to construct 3 million metric tons, valued $2.5bn fertiliser plant in Ethiopia

…Will preserve 60% possession

Ethiopian Funding Holdings (EIH), the strategic funding arm of the Authorities of Ethiopia, and Dangote Group have introduced the signing of a complete shareholders’ settlement to develop, assemble, and function a world-class urea fertilizer manufacturing advanced in Gode, Ethiopia. Below the partnership construction, EIH will maintain a 40% fairness stake whereas Dangote Group will preserve 60% possession of the transformative undertaking that represents one of many largest industrial investments in Ethiopian historical past.

The formidable undertaking will set up one of many world’s largest single-site urea fertilizer manufacturing complexes, with manufacturing services boasting a mixed capability of as much as three million metric tons every year. The power will rank among the many prime 5 largest urea manufacturing complexes globally.

Below the settlement, the 2 corporations will collectively develop, personal, assemble, function, preserve, insure, and finance the state-of-the-art urea fertilizer crops and related infrastructure. The excellent growth consists of superior gasoline transport pipelines to evacuate pure gasoline from Ethiopia’s Hilal and Calub reserves, storage services, logistics infrastructure, and export capabilities designed to serve each home and regional markets.

The settlement additionally gives for potential expansions, upgrades, and related fertilizer manufacturing initiatives in ammonia-based fertilizers, together with ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, additional cementing Ethiopia’s place as a regional fertilizer manufacturing hub.

The Undertaking Improvement Prices are estimated to not exceed $2.5 billion USD, with completion focused inside 40 months from graduation. A significant factor of this funding consists of the development of a devoted pipeline infrastructure to move pure gasoline from Ethiopia’s confirmed Hilal and Calub gasoline reserves to the Gode manufacturing facility, guaranteeing a dependable and cost-effective feedstock provide for the fertilizer advanced.

This substantial funding underscores each corporations’ dedication to reworking Ethiopia’s agricultural sector and enhancing meals safety throughout the area. The undertaking is predicted to considerably scale back Ethiopia’s dependence on fertilizer imports whereas creating hundreds of direct and oblique employment alternatives within the Somali Regional State and past.

Aliko Dangote, President/Chief Government of Dangote Group, commented: “This partnership with Ethiopian Funding Holdings represents a pivotal second in our shared imaginative and prescient to industrialize Africa and obtain meals safety throughout the continent. The strategic location of Gode, mixed with Ethiopia’s plentiful pure gasoline assets from the Hilal and Calub reserves, makes this a really perfect location for what’s going to turn into one of many world’s largest fertilizer complexes.

We’re dedicated to bringing our a long time of expertise in large-scale industrial tasks to make sure this enterprise turns into a cornerstone of Ethiopia’s industrial transformation and a catalyst for agricultural productiveness all through the area. The 60-40 partnership construction displays our dedication to this transformative undertaking whereas guaranteeing robust Ethiopian participation.”

Dr. Brook Taye, Chief Government Officer of Ethiopian Funding Holdings, acknowledged: “This landmark settlement with Dangote Group marks a big milestone in Ethiopia’s journey towards industrial self-sufficiency and agricultural modernization. Because the strategic funding arm of the Authorities of Ethiopia, EIH is proud to safe a 40% stake in what will probably be one of many world’s largest urea manufacturing services. The undertaking aligns completely with our nationwide growth priorities and can considerably improve our agricultural productiveness whereas positioning Ethiopia as a regional hub for fertilizer manufacturing.

The utilization of our home Hilal and Calub gasoline reserves via devoted pipeline infrastructure ensures vitality safety and value competitiveness for many years to come back. We’re assured that this partnership will ship great worth to Ethiopian farmers, contribute to meals safety, and generate substantial financial advantages for our nation.”

The Gode fertilizer advanced will play a vital function in supporting Ethiopia’s agricultural sector, which employs over 70% of the nation’s inhabitants. By guaranteeing dependable entry to high-quality fertilizers at aggressive costs, the undertaking is predicted to spice up crop yields, enhance farmer incomes, and contribute to nationwide meals safety aims. With its 3 million metric ton annual capability, the power will rank among the many world’s prime fertilizer manufacturing complexes, whereas considerably exceeding the capability of most present services worldwide.

This scale positions Ethiopia as a significant participant within the international fertilizer market and a key provider for the African continent. The partnership leverages Dangote Group’s confirmed observe file in large-scale industrial tasks throughout Africa and Ethiopian Funding Holdings’ function as the federal government’s strategic funding automobile with deep understanding of the native market and regulatory atmosphere.

The pipeline connection to the Hilal and Calub gasoline reserves ensures long-term feedstock safety and value competitiveness in international markets. The undertaking additionally helps broader regional integration aims by making a dependable provide of fertilizers for neighboring nations, doubtlessly lowering import prices and bettering agricultural productiveness throughout East Africa and past.