Ethiopia signs five investment deals on mining, energy sector
The government of Ethiopia has signed five major investment agreements aimed at strengthening the country’s mining and energy industries. The Ministry of Finance made the announcement and said the deal totaled more than $1.6 billion (equivalent to 214.99 billion Ethiopian birr) and are central to Ethiopia’s ongoing economic reform efforts.
The agreements were formalized during the Ethiopia High-Level Business Forum 2025, held over two days in Addis Ababa, and involved key partnerships with Chinese investors, among others. Huawei Mining Processing Company has committed $500 million to support mineral exploration and processing activities. Part of this investment includes plans to develop a dedicated economic zone. Sequa Mining and Processing, a joint venture combining Ethiopian and Chinese partners, will inject $600 million to advance coal mining operations within Ethiopia.
Economic reforms
Hanergy New Energy Technology Company plans to invest $360 million in building a solar cell manufacturing facility, contributing to the country’s push for renewable energy development. Sesar Energy Advancing Solutions will contribute $250 million toward the growth of solar energy infrastructure.
Toyo Solar Manufacturing Development has earmarked $14 million (2.04 billion yen) to expand the country’s solar cell production capacity. Although a specific timeline for when these funds will be deployed has not yet been disclosed, the capital inflow is expected to significantly support Ethiopia’s transformation agenda.
Finance Minister Ahmed Shide reaffirmed Ethiopia’s dedication to fostering a business-friendly environment, maintaining macroeconomic balance, and accelerating structural reforms under the newly launched Macro Reform Programme. He described the current period as a highly favorable time for investors and stressed the importance of foreign investment in driving inclusive economic growth, resilience, and sustainable development.
These investments come amid broader economic reforms that include efforts to liberalize the national currency and pursue debt restructuring with international lenders. Ethiopia is currently negotiating the restructuring of $8.4 billion in official debt, following its $3.4 billion agreement with the IMF in July 2024. This investment wave builds on recent progress in the extractives sector, such as the launch of the Tulu Kapi Gold Project in western Ethiopia by KEFI Gold and Copper in May 2024.
