Ethiopia : $340M to turn Tulu Kapi into an African gold powerhouse
Ethiopia has taken a decisive step toward becoming a major gold producer in Africa after securing $340 million in financing to develop the Tulu Kapi gold project, one of the country’s largest mining ventures and a potential turning point for its mining sector.
Ethiopia is moving forward rapidly to transform its mining industry. The Tulu Kapi gold project, located in the Wollega zone of the Oromia region, has secured total financing of $340 million. This includes $240 million in project debt provided by African lenders such as the African Finance Corporation and the Eastern and Southern African Trade and Development Bank, while $100 million in equity is currently being finalized with local and specialized investors.
With gold prices at record levels, this is the ideal time to launch Tulu Kapi
KEFI Gold and Copper’s Executive Chairman, Harry Anagnostaras-Adams, welcomed the agreement as a “decisive milestone” that enables the project to move into full-scale construction. “With gold prices at record levels, this is the ideal time to launch Tulu Kapi,” he said, noting that progress on preparatory works—including access roads, housing, and power connections—demonstrates the project’s transition into full development.
Located approximately 360 kilometers west of Addis Ababa, the project is expected to produce around 164,000 ounces of gold per year during its first seven years of operation, with commercial production targeted for 2027. At this level, Tulu Kapi is set to become one of the country’s most significant gold operations, making a substantial contribution to foreign-exchange earnings and economic stabilization.
Diversifying the economy and attracting more FDI
The participation of the Ethiopian state, which holds an equity stake and an economic interest in the mine, is part of a national strategy aimed at making mining a pillar of economic growth. The government seeks to diversify an economy traditionally dominated by agriculture, strengthen exports, and attract increased foreign direct investment into the natural resources sector.
According to analysts, this development illustrates a paradigm shift for Ethiopia, which has long lagged behind other African countries such as South Africa and Ghana in the industrial exploitation of mineral resources. If successful, Tulu Kapi could stimulate similar projects across the continent, particularly in countries seeking to unlock their mineral potential while complying with international environmental and social standards.
As construction is expected to intensify in 2026, the challenge for Addis Ababa will be to maintain political stability, improve local infrastructure, and ensure transparent management of mining revenues so that the benefits translate into jobs, community development, and sustainable growth for the entire region.
