…Will preserve 60% possession
Ethiopian Investment Holdings (EIH), the strategic funding arm of the Government 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 complicated in Gode, Ethiopia. Under the partnership construction, EIH will maintain a 40% fairness stake whereas Dangote Group will preserve 60% possession of the transformative mission that represents one of many largest industrial investments in Ethiopian historical past.
The bold mission will set up one of many world’s largest single-site urea fertilizer manufacturing complexes, with manufacturing amenities boasting a mixed capability of as much as three million metric tons every year. The facility will rank among the many prime 5 largest urea manufacturing complexes globally.
Under 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 complete improvement contains superior gasoline transport pipelines to evacuate pure gasoline from Ethiopia’s Hilal and Calub reserves, storage amenities, logistics infrastructure, and export capabilities designed to serve each home and regional markets.
The settlement additionally offers for potential expansions, upgrades, and comparable 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 Project Development Costs are estimated to not exceed $2.5 billion USD, with completion focused inside 40 months from graduation. A significant factor of this funding contains 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 complicated.
This substantial funding underscores each corporations’ dedication to remodeling Ethiopia’s agricultural sector and enhancing meals safety throughout the area. The mission is anticipated 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 Executive of Dangote Group, commented: “This partnership with Ethiopian Investment 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 ample pure gasoline sources from the Hilal and Calub reserves, makes this a super location for what is going to turn into one of many world’s largest fertilizer complexes.
We are dedicated to bringing our many years 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 mission whereas guaranteeing sturdy Ethiopian participation.”
Dr. Brook Taye, Chief Executive Officer of Ethiopian Investment Holdings, said: “This landmark settlement with Dangote Group marks a big milestone in Ethiopia’s journey towards industrial self-sufficiency and agricultural modernization. As the strategic funding arm of the Government of Ethiopia, EIH is proud to safe a 40% stake in what will probably be one of many world’s largest urea manufacturing amenities. The mission aligns completely with our nationwide improvement 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 by way of devoted pipeline infrastructure ensures vitality safety and value competitiveness for many years to come back. We are assured that this partnership will ship super worth to Ethiopian farmers, contribute to meals safety, and generate substantial {economic} advantages for our nation.”
The Gode fertilizer complicated will play an important 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 mission is anticipated to spice up crop yields, enhance farmer incomes, and contribute to nationwide meals safety goals. 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 current amenities worldwide.
This scale positions Ethiopia as a significant participant within the world fertilizer market and a key provider for the African continent. The partnership leverages Dangote Group’s confirmed observe report in large-scale industrial tasks throughout Africa and Ethiopian Investment Holdings’ function as the federal government’s strategic funding automobile with deep understanding of the native market and regulatory surroundings.
The pipeline connection to the Hilal and Calub gasoline reserves ensures long-term feedstock safety and value competitiveness in world markets. The mission additionally helps broader regional integration goals by making a dependable provide of fertilizers for neighboring nations, doubtlessly decreasing import prices and enhancing agricultural productiveness throughout East Africa and past.
