Ethiopia moves to become Africa’s next gold powerhouse with $340m mine
Ethiopia has taken a decisive step toward transforming itself from a marginal gold producer into a serious player in Africa’s mining industry after securing $340 million to develop the Tulu Kapi gold project, the country’s largest modern mining venture.
Ethiopia’s long-delayed Tulu Kapi gold project has reached a major turning point after securing about $340 million in development financing, clearing the way for construction of one of the country’s largest modern gold mines.
The funding package includes roughly $240 million in long-term debt from African development lenders and about $100 million in equity, providing KEFI Gold and Copper, the project’s developer, with the financial backing needed to move into full-scale construction.
KEFI Executive Chairman, Harry Anagnostaras-Adams, commented: “We are delighted that the Tulu Kapi debt offering has now been signed by all the relevant parties.”
This has triggered further activity at site as part of the launch of full Project development and is allowing the remaining equity proposals to be finalised amongst the assembled local and specialist investors.”
“With the gold price at a record high, this is the perfect time to be launching Tulu Kapi.”
Early works, including housing, power connections and road access, have already begun as the project prepares for full build-out.
Located around 360 kilometres west of Addis Ababa, the Tulu Kapi mine is expected to produce about 164,000 ounces of gold per year during its first seven years, with commercial production targeted for 2027.
That level of output would make it one of Ethiopia’s most important gold operations and a major source of foreign currency for the country.
Ethiopia bets on mining to boost foreign currency earnings
The project is being developed under a partnership with the Ethiopian government, which holds a carried interest and has committed to an equity stake, reflecting Addis Ababa’s push to make mining a strategic pillar of the economy.
Ethiopia has been working to modernise its mining sector after years of underinvestment, with gold now playing a growing role in export revenues.
Tulu Kapi is designed as an open-pit mine with potential underground expansion, allowing production to be extended beyond its initial life. Officials see it as a flagship for attracting more foreign investment into Ethiopia’s largely untapped mineral resources.
The timing is also significant. Across Africa, governments are increasingly seeking to capture more value from their natural resources, particularly gold, which has become a key hedge against currency shortages and external shocks.
Countries such as Sudan, Ghana and several Sahel states have stepped up state involvement in mining as they try to stabilise public finances.
For Ethiopia, the success of Tulu Kapi would mark a turning point. With financing now largely in place and construction on the horizon, the project offers a rare opportunity to translate mineral wealth into jobs, infrastructure and hard-currency earnings at a time when the economy needs all three.
