COUNTRY IN FOCUS •
Natanaelginting | Freepik. com
ETHIOPIA’ S MINERAL WEALTH FINALLY TRANSLATES INTO PRODUCTION GROWTH
For decades, the narrative surrounding Ethiopia’ s mining sector has been one of immense geological promise stifled by bureaucratic inertia, infrastructure deficits and security concerns, writes Dr Nicolaas C Steenkamp, for African Mining, incorporating Mining Mirror.
However, the 2024 – 2026 period marks a definitive pivot. With gold recently overtaking coffee as the nation’ s top export earner, generating approximately USD3.5- billion in the 2024 / 25 fiscal year, the sector is transitioning from an artisanal-dominated landscape to one defined by largescale industrial development.
Ethiopia sits atop the Arabian-Nubian Shield, a geological formation that hosts some of the world’ s most significant deposits of gold, copper and base metals. Despite this, the country has historically lagged behind its East African neighbours in industrial output.
The climate in early 2026, however, is one of cautious but accelerating optimism. The Ethiopian government, under the Ministry of Mines, has aggressively pursued reforms to attract foreign direct investment( FDI). Key among these was the liberalisation of the foreign exchange market in mid-2024, a move designed to eliminate the crippling hard-currency shortages that had previously made repatriating profits and importing machinery nearly impossible for miners.
While the " first mover " disadvantage has long plagued Ethiopian mining, the ice has been broken. The graduation of exploration projects into the construction and production phases signals to the global market that Ethiopia is open for business. The entry of mining majors underscored by the massive acquisition of Allied
Gold by Chinese giant Zijin Mining in January 2026, validates the geological thesis that Ethiopia is the next frontier for African gold.
KEFI Gold and Copper’ s Tulu Kapi For years, KEFI Gold and Copper’ s Tulu Kapi Gold Project was the bellwether for the sector, a litmus test for whether a Western-listed company could successfully build a modern mine in Ethiopia. In late 2025, KEFI passed that test.
Located in the Oromia Region, Tulu Kapi has finalised its USD340-million financing package, a complex syndicate involving the Eastern and Southern African Trade and Development Bank( TDB), the Africa Finance Corporation( AFC), and equity partners.
Early works have commenced. The resettlement of local communities is underway, housing construction for resettled families has begun, and the grid connection work at the Ghimbi zonal centre is active. Full-scale construction is ramping up, with the first gold pour targeted for mid-2026. The project is designed to produce approximately 140 000 ounces of gold per year at an All-In Sustaining Cost( AISC) of roughly USD800 – 900 / oz, making it a highmargin operation in the current gold price environment.
KEFI’ s perseverance has established a blueprint for financing and community engagement( including the launch of the Tulu Kapi Charitable Endowment Fund) that other juniors are now following.
www. africanmining. co. za African Mining Publication African Mining African Mining • April 2026 • 15