Ethiopia Secures Over $1.7 Billion in Major Energy and Minerals Investment Deals

Ethiopia has signed investment agreements worth more than $1.7 billion to boost its energy and minerals sectors, with the bulk of the deals involving Chinese companies. This move is part of the country’s ongoing efforts to attract foreign investment and unlock the potential of its rich natural resources.

Among the major agreements is a partnership with China’s Poly-GCL Petroleum Group for the development of natural gas reserves in the Ogaden Basin, a project seen as key to expanding Ethiopia’s energy capacity and reducing fuel imports.

In addition, other Chinese firms are contributing to the country’s hydropower expansion, continuing their involvement in projects like the Genale Dawa III and Gilgel Gibe III dams. These ventures are helping Ethiopia strengthen its renewable energy base.

There are also innovative plans to use flared gas (waste gas usually burned off during oil production) to power artificial intelligence-focused data centers. This initiative is being led by China’s GCL Energy Investment in collaboration with UAE-based Hodler Investments, aligning with Ethiopia’s digital transformation goals.

These strategic deals highlight Ethiopia’s growing role as an investment hub in East Africa and mark a significant step forward in its energy and industrial development agenda.