Addis Ababa (AMECO Africa)- Ethiopia has signed a $2.5bn deal with Nigeria’s Dangote Group to construct a major urea fertiliser plant in Gode, aiming to secure food supplies and cut expensive foreign imports.
The mega-facility, developed in partnership with state-owned Ethiopian Investment Holdings (EIH), will process local natural gas reserves in the Somali region to produce urea fertiliser for domestic agriculture and international markets.
Announcing the agreement, the finance minister, Ahmed Shide, said the strategic investment would drive agricultural modernisation, generate thousands of jobs, and ease pressure on foreign currency reserves by replacing costly imports.
Ethiopian farmers have faced chronic shortages, soaring prices, and severe delivery delays during crucial planting seasons. Local production is expected to significantly reduce transport costs, enabling smallholders to access essential inputs at fair prices and when needed most.
The prime minister, Abiy Ahmed, stated that while the official contract sets a 40-month construction timeline, the government is providing monitoring and institutional support to finish the project ahead of schedule to relieve national supply bottlenecks.
Government officials framed the partnership with the Dangote Group as proof of Ethiopia’s growing appeal for foreign direct investment, noting that the plant will eventually generate export revenue alongside satisfying domestic demand.
