Ethiopia has signed investment deals worth over $1.7 billion with Chinese companies to develop its energy and mineral sectors, the Finance Ministry announced on Tuesday. The agreements were finalized during a two-day investment conference in Addis Ababa focused on attracting foreign capital.
The largest deal includes a $600 million commitment from Sequoia Mining & Processing Plc to expand coal mining operations in Ethiopia. Additionally, Hua Ye Mining Processing Company pledged $500 million to develop a mineral processing plant and a dedicated special economic zone.
China’s clean energy companies are also stepping in with significant backing. Hainan Drinda New Energy Technology will invest $360 million in a solar cell manufacturing facility, while CSI Solar committed $250 million for solar energy projects in the country.
While the ministry did not share a specific timeline for the disbursement of funds, it emphasized that these agreements reflect growing global confidence in Ethiopia’s ongoing economic reforms. These reforms include floating the national currency, the birr, and restructuring $8.4 billion in debt with global lenders.
In July 2023, Ethiopia signed a $3.4 billion deal with the International Monetary Fund to support macroeconomic stability and unlock further international financing. These new investments are seen as a direct result of that strategy, signaling Ethiopia’s rising profile as an investment destination in Africa.
Officials believe the new deals will help the country strengthen its industrial base, create jobs, and accelerate the shift toward clean energy, marking a key milestone in Ethiopia’s path toward sustainable economic growth.