Faith Nyasuguta
Ethiopia has landed over $1.7 billion in fresh investment commitments targeting its minerals and energy sectors, the country’s Ministry of Finance confirmed this week. The landmark deals signed during a high-profile two-day investment forum in the capital, Addis Ababa mark a significant push by the East African nation to draw foreign capital amid sweeping economic reforms.
According to the ministry, most of the agreements were inked with Chinese firms, underlining China’s continued dominance as Ethiopia’s largest foreign investor. The deals span mineral exploration, coal mining, and renewable energy development, key areas of focus as Ethiopia seeks to diversify its economy and stabilize public finances.
The largest single investment, worth $600 million, comes from Sequoia Mining & Processing Plc, which intends to develop large-scale coal mining operations. Close behind is a $500 million pledge by Hua Ye Mining Processing Company, earmarked for mineral exploration, processing, and the establishment of a special economic zone dedicated to mining-related activities.
In the renewable energy sector, Hainan Drinda New Energy Technology Co. committed $360 million to build a state-of-the-art solar cell manufacturing plant. Meanwhile, CSI Solar is investing $250 million to develop solar module and energy storage manufacturing capacity, further reinforcing Ethiopia’s aim to become a regional hub for sustainable energy technologies.
While the ministry did not outline specific timelines for when these investments would be implemented, officials say the deals reflect strong investor confidence in Ethiopia’s evolving business landscape. “These agreements showcase Ethiopia’s untapped potential in the mineral and renewable energy sectors,” said a senior finance ministry official. “We are laying the groundwork for long-term growth and technology transfer.”
These developments come as Ethiopia continues a far-reaching reform agenda, including plans to float its currency, the birr, and finalize an $8.4 billion debt restructuring package with official creditors. In 2023, the country also secured a four-year, $3.4 billion program from the International Monetary Fund (IMF) to support its economic recovery.
China’s role in Ethiopia’s development remains central. According to the Ethiopian Investment Commission, Chinese firms are responsible for more than 4,500 registered projects in the country, spanning infrastructure, manufacturing, and energy. The newly announced deals are expected to create thousands of jobs and contribute significantly to Ethiopia’s export earnings.
Economists say Ethiopia’s pivot to attracting more foreign direct investment is a logical move amid rising debt levels and a need to boost forex reserves. With abundant mineral resources and high solar potential, the country is seen as well-positioned to benefit from the global shift toward green energy and resource security.
As Addis Ababa deepens its partnerships with foreign investors, officials remain optimistic that these strategic deals will spur broader economic transformation, reduce unemployment, and elevate Ethiopia’s role in global value chains, particularly in clean energy and raw materials essential for future technologies.
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