Keypoints:
- Ethiopia inks $1.6bn in new investment pledges
- Chinese firms lead energy, mining deals
- Part of wider reforms under IMF-backed agenda
ETHIOPIA has signed over $1.6bn worth of new investment deals, largely driven by Chinese companies, to develop its energy and mineral sectors, the Ministry of Finance announced on Tuesday. The agreements were finalised during the Invest in Ethiopia High-Level Business Forum 2025 held in Addis Ababa.
The landmark investment pledges are part of Ethiopia’s broader strategy to overhaul its economy and attract private-led growth through foreign direct investment in strategic sectors such as mining and energy.
Energy and mining at the core of new push
Among the largest announcements was a $500 million commitment from China’s Huawei Mining Processing Company Limited. The firm plans to invest in mineral exploration, processing, and the establishment of a special economic zone focused on mineral development.
Sequa Mining and Processing PLC, a joint venture between Ethiopian and Chinese firms, committed to a $600 million coal mining project. This would mark one of the largest single investments in Ethiopia’s underdeveloped coal sector.
Meanwhile, in the renewable energy space, Hanergy New Energy Technology Company Limited and its partner Jandu pledged $360 million to set up a solar cell manufacturing facility in Ethiopia, reflecting a growing interest in green energy production on the continent.
Toyo Solar Manufacturing Development PLC also signed an agreement to inject $14 million into expanding its current solar production capacity in Ethiopia.
Additionally, Sesar Energy Advancing Solutions announced a two-phase investment plan totalling $250 million — with $100 million earmarked for the first phase and a further $150 million in the second — aimed at strengthening domestic solar energy development.
IMF-backed reforms draw investor confidence
The new investment wave comes amid Ethiopia’s ongoing economic reform agenda. Last year, the country secured a $3.4bn Extended Credit Facility (ECF) from the International Monetary Fund (IMF) to support the Homegrown Economic Reform (HGER) Agenda. The programme seeks to address macroeconomic imbalances, improve debt sustainability, and create a pathway for inclusive, private-sector-driven growth.
Officials have emphasised that unlocking foreign capital is central to Ethiopia’s efforts to diversify its economy, modernise infrastructure, and reduce its dependence on aid and public borrowing.
Untapped resources, ripe for investment
Although Ethiopia is rich in natural resources — including coal, opal, gemstones, kaolin, iron ore, soda ash, and tantalum — gold remains the only mineral currently mined at scale. Government officials hope the new influx of private investment, especially from technology- and energy-focused Chinese firms, will accelerate the development of the country’s vast but largely untapped mineral wealth.
The Ministry of Finance hailed the deals as a strong vote of confidence in Ethiopia’s economic potential and regulatory reforms. With rising investor interest and international backing, the country is positioning itself as a key African destination for sustainable and strategic investment.
