Ethiopia’s Finance Ministry announced Tuesday that it has signed $1.7 billion worth of new deals to boost its mining and renewable energy sectors.
The country is accelerating its economic reform efforts and seeking foreign investment to ease a growing debt burden.
The agreements, primarily backed by Chinese companies, were sealed during a two-day investment forum held in Addis Ababa. Officials said the deals will spur job creation, expand industrial capacity, and help the country diversify away from agriculture.
Among the most significant investments is a $500 million project by Hua Ye Mining Processing Company, which plans to explore and process minerals and establish a special economic zone dedicated to the industry. This marks one of the most significant single-sector commitments Ethiopia has received in recent years.
A $600 million deal with Sequoia Mining & Processing Plc to develop coal mining operations was also signed. The project is expected to reduce Ethiopia’s reliance on imported fuels and support domestic power generation.
In the clean energy sector, Hainan Drinda New Energy Technology committed $360 million to build a solar cell manufacturing plant. In comparison, CSI Solar pledged $250 million to expand solar energy infrastructure across the country.
While the government did not outline a timeline for the disbursement of funds, the scale of the investments signals growing foreign confidence in Ethiopia’s reform agenda.
Ethiopia is currently executing a $3.4 billion IMF-backed reform program, which includes a long-anticipated flotation of the birr currency and an ambitious $8.4 billion debt restructuring plan with official creditors. The government hopes the capital inflow will support fiscal recovery and unlock broader growth opportunities.
“These investments are a strong vote of confidence in Ethiopia’s economy and reform path,” the Finance Ministry said in a statement.
The country’s strategic pivot to mining and renewable energy is seen as a key pillar in its transition from a predominantly agrarian economy to an industrialised, export-driven one.
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