Ethiopia attracts $4.2 billion mining investment in new deals

Ethiopia has signed $4.2 billion in mining investment agreements with three companies to accelerate development of the country’s gold, potash, and iron ore resources, marking one of the largest recent pushes to expand Africa’s fast-growing mining sector and mineral exports.

The deals, announced by the Ethiopian Ministry of Mines in the capital Addis Ababa, aim to unlock the East African nation’s largely untapped mineral wealth while strengthening industrial production and export revenues. The agreements were signed by Mines Minister Habtamu Tegegne alongside executives from the participating firms.

The investments form part of the government’s broader strategy to transform Ethiopia into a regional mining hub, while supporting domestic industries that rely on critical raw materials such as fertilizer inputs, iron, and precious metals.

New mining projects target strategic minerals

Under the agreements, ZYTB DIM Metals and Minerals Manufacturing PLC, a joint venture between Ethiopian and Chinese investors, will lead iron ore production, targeting large-scale extraction designed to supply both domestic manufacturers and export markets.

State-owned investment arm Ethiopian Investment Holdings, led by CEO Brook Taye, will spearhead potash mining development, a key ingredient for fertilizer production that could strengthen agricultural supply chains across East Africa.

Meanwhile, Bero Mining and Trading PLC will develop a gold mining project, aimed at increasing Ethiopia’s gold reserves and boosting foreign-exchange earnings through global commodity exports.

Mining sector key to industrial strategy

Speaking at the signing ceremony, Minister Habtamu said the projects will help reduce reliance on imports and accelerate Ethiopia’s industrialization.

“The mining sector focuses on producing strategic inputs domestically, including fuel, fertilizer, iron, cement, ceramics, and marble,” he said. “Alongside local production, exporting minerals such as gold and potash remains a major priority.”

Ethiopia has historically imported iron ore to support its construction and manufacturing industries. Officials say the new iron ore development could significantly reduce import dependence while creating high-value export opportunities.

Ambition to become a leading African producer

The iron ore project’s leadership, headed by board president Mulatu Teshome, says the operation could position Ethiopia among Africa’s emerging iron ore producers within the next decade, with projected output of about two million metric tons annually.

Gold production is also expected to expand under the new investment. According to Habte Fereja, manager of Bero Mining and Trading, the project will strengthen Ethiopia’s mineral economy while generating jobs and foreign currency inflows.

The deals underscore Ethiopia’s growing appeal to investors seeking opportunities in Africa’s mining boom, as countries across the continent race to develop strategic minerals critical for industrial growth and global commodity markets.