Ethiopia: Dangote Hires Spanish Firm for Ethiopia's $4 Billion Fertiliser Project

Addis Abeba — Dangote Group, owned by Nigerian billionaire Aliko Dangote, has contracted Spanish engineering company Técnicas Reunidas to supply two hydrogen reformers for its fertiliser plant under construction in Gode, Somali region, as the project's estimated cost rises to more than $4 billion.

Técnicas Reunidas announced on Wednesday that it would design, procure materials for, manufacture and deliver the two units within 18 months. The reformers are expected to produce a combined output of more than 200,000 normal cubic metres of hydrogen per hour. The company did not disclose the contract's value.

The equipment will be supplied through TR-Technical, the Spanish company's heat-transfer equipment division, using process technology licensed by Danish firm Topsoe.

The Gode complex is designed to produce three million tonnes of urea annually. Dangote and Prime Minister Abiy Ahmed launched construction in October 2025, following a shareholders' agreement between Dangote Group and Ethiopian Investment Holdings, the state-owned investment fund. Dangote Group holds a 60% stake in the venture, while the Ethiopian entity owns the remaining 40%.

Initially valued at $2.5 billion, the project's investment estimate increased to more than $4 billion in May as plans expanded to include a 110-kilometre gas pipeline, a 120-megawatt power plant, a packaging facility and a blending plant with an annual capacity of two million tonnes of NPK fertiliser, Billionaires.Africa reported.

The plant will use natural gas from the Calub field in the Ogaden basin. Chinese firm GCL Group signed a 25-year supply agreement in March, according to the report.

Ethiopia currently imports nearly all its fertiliser, and the government expects domestic production to reduce foreign currency expenditure and support agricultural output.

Earlier this month, Dangote said he planned to offer at least 10% of the Ethiopian venture to local investors through the Ethiopian Securities Exchange once production stabilises. No date or pricing has been announced for the proposed share sale.

Addis Standard reported in August 2025 that Ethiopian Investment Holdings (EIH), the government's strategic investment arm, and Dangote Group had signed a shareholders' agreement to develop a $2.5 billion urea fertiliser complex in Gode, Somali Region. Under the agreement, Dangote Group holds a 60% stake in the joint venture, while EIH owns the remaining 40%.

In May 2026, Addis Standard reported that the planned investment had increased to more than $4 billion following a visit to the construction site by Prime Minister Abiy Ahmed and Nigerian billionaire Aliko Dangote. The expanded project includes a gas pipeline from the Calub field in the Ogaden Basin, a 120-megawatt power plant, a polypropylene packaging facility and a blending plant designed to produce two million tonnes of NPK fertiliser annually.

Following the visit, Abiy described the initiative as a strategic investment in Ethiopia's agricultural transformation, food security and economic self-reliance. He said the facility would strengthen domestic production, reduce import dependence, support farmers and create employment opportunities. The government has also sought to accelerate construction beyond the original 40-month timeline.

In March 2026, Addis Standard reported on a $4.2 billion, 25-year natural gas supply agreement between Dangote Industries Limited and China's GCL Group. The agreement provides for gas from the Calub field to supply the complex, linking domestic gas extraction with fertiliser production.

The facility is designed to produce three million tonnes of urea annually, while the separate NPK blending plant will have an annual capacity of two million tonnes. The complex is expected to begin operations in 2029 and could also supply markets across East Africa.

The project comes as Ethiopia continues to rely heavily on imported fertiliser to meet domestic agricultural demand. Russian Ambassador to Ethiopia Yevgeny Terekhin told Russia's state news agency TASS that Ethiopia had become the world's third-largest importer of Russian fertiliser, driven largely by demand for diammonium phosphate (DAP). He said the state-owned procurement company requires approximately 1.2 million tonnes of DAP annually, while Russia is exploring opportunities to expand its presence in Ethiopia's agrochemical market.

Read the original article on Addis Standard.