(Ecofin Agency) - • Ethiopia has signed $1.7 billion in investment deals, mainly in mining and solar panel production.
• Most commitments come from Chinese companies, reinforcing China’s lead as top investor.
• The deals align with Ethiopia’s reform efforts under its $3.4 billion IMF-backed program.

Ethiopia has signed $1.7 billion worth of investment agreements, Finance Minister Ahmed Shide announced on May 13, during the closing session of the Invest in Ethiopia High-Level Business Forum 2025.

The agreements primarily cover the minerals sector and solar panel manufacturing, with a majority of the funding coming from Chinese companies.

Chinese firm Hua Ye Mining Processing Company committed $500 million for mineral exploration, processing, and the creation of a Special Economic Zone focused on mining.

Sequoia Mining & Processing will invest $600 million in coal extraction projects. Hainan Drinda New Energy Technology plans to commit $360 million to solar cell production. CSI Solar, a subsidiary of Canadian Solar, is expected to invest $250 million in photovoltaic panel and component manufacturing.

These investments support Ethiopia’s economic reform program tied to a $3.4 billion financing agreement with the International Monetary Fund (IMF) approved in July 2024. The reforms target exchange rate liberalization, public enterprise governance, debt sustainability, and the business environment.

According to the 2024 World Investment Report by UNCTAD, foreign direct investment (FDI) inflows to Ethiopia reached $3.26 billion in 2023, placing the country among Africa’s top five destinations for FDI. Key sectors include mining, real estate, manufacturing, textiles, and renewable energy. China accounted for around 60% of newly approved FDI projects in Ethiopia in 2023.

Walid Kéfi