Ethiopia launches ‘transformative’ industrial projects

Prime Minister Abiy Ahmed has taken part in a ceremony marking the construction of a urea fertilizer plant and an oil refinery

Ethiopian Prime Minister Abiy Ahmed has officially launched two large-scale industrial projects, a urea fertilizer plant and an oil refinery, in the southeastern city of Gode.

The fertilizer plant will be developed by Ethiopian Investment Holdings (EIH) in partnership with Nigeria’s Dangote Group, while the Gode Oil Refinery is set to be constructed by China’s Golden Concord Group Limited (GCL).

“Today marks a historic occasion for all Ethiopians as we lay the foundation stone for two transformative projects,” Abiy said in a statement posted on X on Thursday.

According to Abiy, the Gode Oil Refinery will have a processing capacity of 3.5 million tons per year, utilizing crude oil and condensate extracted from the Hilala oil field. The urea fertilizer plant, meanwhile, will produce up to 3 million tons annually, using natural gas from the Calub gas fields, transported via a 108km pipeline.

The prime minister said the projects represent more than industrial advancement. “They embody our shared responsibility to harness opportunities, strengthen cooperation, and promote peace. Hence I call upon all Ethiopians to continue mobilizing in unity for progress,” Abiy stated.

The agreement between EIH and the Dangote Group for the fertilizer facility was signed in August, with project completion targeted within 40 months.

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Thursday’s groundbreaking comes just weeks after Ethiopia officially inaugurated the Grand Ethiopian Renaissance Dam (GERD) on the Blue Nile, now considered Africa’s largest hydroelectric facility. The project, which has the capacity to generate up to 5.15 gigawatts of power, is expected to significantly enhance electricity access across the country, where nearly half the population remains without reliable power.

Despite regional objections – particularly from Egypt and Sudan, who fear the GERD will disrupt vital water flows downstream – Ethiopia has pushed ahead, viewing the dam as central to its long-term development agenda.

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Dangote Group, one of Africa’s largest industrial conglomerates, is behind the recently launched Dangote Refinery in Nigeria. Officially inaugurated in May 2023, the complex has a designed capacity of about 650,000 barrels of crude oil per day, making it the largest single-train refinery on the continent. The project represents an investment of roughly $19 billion.