Ethiopian Prime Minister Abiy Ahmed has laid the foundation stone for two landmark industrial projects – a multibillion-dollar urea fertilizer plant and an oil refinery in the eastern Somali region.

China's Golden Concord Group Limited ( GCL ) will construct the Gode Oil Refinery, in partnership with Ethiopia Investment Holdings ( EIH ), the government’s strategic investment arm.    

Costing about US$5 billion, the refinery is designed to process 3.5 million tonnes of oil annually, utilizing crude oil and condensates sourced from the Hilala oil field.

GCL established its presence in Ethiopia in 2013, taking over concessions in the Calub and Hilala fields. It started producing limited volumes of crude in 2018, although the efforts had not resulted in substantial quantities for export.  

The Gode project is the first major downstream facility to break ground in the region. Officials say the refinery forms part of Ethiopia’s 10-year development plan, which prioritizes industrial growth and infrastructure development.

Mammoth complex

In August 2025, Ethiopia and Nigerian conglomerate Dangote Group signed an agreement to develop, construct, and operate the Gode fertilizer plant. Under the deal, EIH holds a 40% stake while Dangote Group owns 60%.

With development costs estimated at US$2.5 billion, the fertilizer plant will have an annual production capacity of 3 million tonnes. It will utilize natural gas from the Hilala and Calub fields, transported through a 108-kilometre pipeline. This will ensure a reliable and cost-effective feedstock supply for the complex. Completion is targeted within 40 months from the project’s commencement.

The facility will rank among the five largest urea production complexes globally. The agreement also provides for potential expansions, upgrades, and similar fertilizer production initiatives in ammonia-based fertilizers, including ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, further cementing Ethiopia’s position as a regional fertilizer production hub.

“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialize Africa and achieve food security across the continent,” says Dangote Group president and chief executive Aliko Dangote.  “The strategic location of Gode, combined with Ethiopia’s abundant natural gas resources from the Hilal and Calub reserves, makes this an ideal location for what will become one of the world’s largest fertilizer complexes.”

The Gode fertilizer complex will play a crucial role in supporting Ethiopia’s agricultural sector, which employs over 70% of the country’s population. By ensuring reliable access to high-quality fertilizers at competitive prices, the project is expected to boost crop yields, improve farmer incomes, and contribute to the country‘s food security.