Ethiopia has signed a new investment deal worth $1.7 billion to boost its mineral and energy sector. The deal, signed with Chinese firms, includes a $500 million investment by Hua Ye Mining Processing Company. It is targeted at minerals exploration, processing, and the development of a special economic zone.
Also, the deal includes another $600 million to be provided by Sequoia Mining & Processing Plc. The fund will be used to develop coal mining projects across the country.
Additionally, Hainan Drinda New Energy Technology will provide $360 million to build solar manufacturing plants. Also, another $250 million will come from CSI Solar, also for solar energy development.
The deals were signed by representatives of Chinese firms attending a two-day investment conference in Addis Ababa.
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This comes as Ethiopia, which struck a four-year, $3.4 billion program deal with the International Monetary Fund last July, is in the midst of a far-reaching reform drive, including the flotation of its birr currency and a push to complete an $8.4 billion debt restructuring with its official creditors.
With the $1.7 billion investment, Ethiopia is targeting a major development of critical sectors like mining, energy and power. This indicates the desire to create more jobs, increase revenue and deal with the looming debt crisis.
