Ethiopia secures $1.7 billion in energy and mineral deals with Chinese investors

Ethiopia has secured over $1.7 billion in new investment commitments for its minerals and energy sectors, mostly from Chinese companies, the country’s finance ministry said late Tuesday.

The agreements were signed during a two-day investment conference in Addis Ababa aimed at attracting foreign capital to support the country’s economic reforms.

The deals include a $500 million investment from Hua Ye Mining Processing Company to explore and process minerals and develop a special economic zone focused on the sector.

Another $600 million will come from Sequoia Mining & Processing Plc to advance coal mining projects.

Chinese clean energy firms are also backing the effort. Hainan Drinda New Energy Technology pledged $360 million to build a solar cell manufacturing plant, while CSI Solar committed an additional $250 million for solar energy development.

The ministry did not provide a timeline for the disbursement of the funds.

Ethiopia, one of Africa’s most populous nations, is undergoing major economic reform, including a planned flotation of its currency, the birr, and an $8.4 billion debt restructuring effort with official creditors.

The country also signed a $3.4 billion, four-year programme with the International Monetary Fund in July 2023, aimed at supporting macroeconomic stability and unlocking new external financing.

The finance ministry said the agreements reflect growing investor confidence in Ethiopia’s economic transformation agenda.