Africa-Press – Ethiopia. Finance Minister Ahmed Shide announced that the deal signed between Ethiopian Investment Holdings and Dangote Industries Limited to establish a 2.5 billion USD urea fertilizer complex will significantly contribute to the advancement of Ethiopia’s agricultural, industrial, and mining sectors.
This landmark deal, signed today in the presence of Prime Minister Abiy Ahmed, is set to transform Ethiopia’s agricultural sector, stimulate growth in the mining and industrial sectors by developing the country’s natural gas resources.
The Minister described the project as a new “renaissance” for the nation, aiming to end Ethiopia’s dependence on imported fertilizer, save a billion in foreign currency, and establish the country as a regional hub for fertilizer production.
The agreement outlines the construction of a large-scale fertilizer factory in the city of Gode, located in the Somali region, the Minister noted.
He said the plant will utilize natural gas from the Calub and Hilala fields, which will be transported to the site via a pipeline. This strategic use of domestic resources is a key part of the project’s long-term vision.
Finance Minister Ahmed stated that the plant will initially focus on meeting domestic demand, a crucial step toward achieving national self-sufficiency in agriculture.
However, over time, as production capacity expands, the complex will begin exporting fertilizer to neighboring countries. “This will not only strengthen the nation’s import-substitution strategy but also position Ethiopia as a major player in the regional market.”
According to the Minister, Ethiopia has been spending a billion of dollars annually to import fertilizer to boost its agricultural productivity. This new factory is expected to eliminate that massive expenditure, freeing up critical foreign exchange reserves.
The agreement is also expected to be a catalyst for significant development in the region creating jobs and improving infrastructure, Ahmed said.
“This aligns with a broader national effort under Prime Minister Abiy Ahmed’s administration to attract large-scale, strategic development projects that build national capacity and accelerate economic growth,” Minister Ahmed added.
He hailed the deal as a historic milestone, likening it to the ongoing progress of the Grand Ethiopian Renaissance Dam (GERD). He believes the project holds immense potential to unlock Ethiopia’s economic strength and bring prosperity to its people.
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