Ethiopia secures $1.7 billion in investments for minerals and energy projects, with major contributions from Chinese companies.
Ethiopia has secured over $1.7 billion in investment agreements focused on its minerals and energy sectors, with the majority of the funding coming from Chinese companies.
These deals were announced by Ethiopia’s Finance Ministry following a two-day investment conference in Addis Ababa.
Key agreements include a $500 million investment from Hua Ye Mining Processing Company for mineral exploration and processing.
Also for the development of a special economic zone dedicated to minerals.
Sequoia Mining & Processing Plc has committed $600 million to develop coal mining projects.
In the renewable energy sector, Hainan Drinda New Energy Technology plans to invest $360 million in a solar cell manufacturing plant, while CSI Solar is set to contribute $250 million towards solar energy development.
These investments align with Ethiopia’s broader economic reform initiatives, including a four-year, $3.4 billion program with the IMF.
The country is also liberalizing previously restricted sectors to attract foreign investment.
China remains Ethiopia’s largest trading partner and top source of foreign direct investment.
This accounts for nearly 50% of all FDI inflow into the country.
Chinese companies have been instrumental in developing Ethiopia’s infrastructure, including railways, power substations, and industrial parks.
These new deals are expected to bolster Ethiopia’s mining and renewable energy sectors, contributing to the nation’s goal of making mining a significant contributor to its GDP.
