Gold Becomes Ethiopia’s Key Export as Revenues Reach $3.5 Billion

Ethiopia’s mining sector is emerging as a key driver of economic growth with gold exports estimated at around $3.5 billion and increasingly reshaping the country’s export structure, overtaking coffee as Ethiopia’s leading export earner, signaling a structural transformation in the country’s trade composition.

During the “Invest in Ethiopia 2026” forum held in Addis Ababa, the state-owned Ethiopian Investment Holdings (EIH) outlined its strategy to position itself as a sovereign platform designed to attract long-term global capital. According to EIH Chief Executive Officer Brook Taye, the institution aims to reduce risks associated with large-scale investments while enabling partnerships with international investors by integrating strategic national assets with private capital.

Recent data from National Bank of Ethiopia highlights a sharp rise in both gold production and prices, gold output being increased from 3.9 tons in the 2023/24 fiscal year to nearly 38.9 tons in 2024/25, with revenues reported at about $3.5 billion, while domestic gold prices surged more than fourfold between early 2024 and late 2025, reflecting global market trends and domestic economic pressures.

The mining sector is also transitioning from predominantly small-scale operations to industrial-level production. Key developments include the progress of KEFI Gold and Copper’s Tulu Kapi project in Oromia, which has secured $340 million in financing and begun early construction, with production expected by mid-2026. In Gambella, Akobo Minerals has commenced production at its Segele mine, marking one of the country’s newest industrial gold operations. In addition, Chinese mining firm Zijin Mining acquired Allied Gold in a deal valued at approximately $4 billion, which includes the Kurmuk gold project, one of Ethiopia’s major undeveloped assets.

Government reforms have played a central role in attracting investment, including the liberalization of investment conditions and artisanal mining activities, foreign exchange market and improving incentives to ease constraints on profit repatriation and equipment imports. Ethiopia’s position within the mineral-rich Arabian-Nubian Shield further enhances its long-term potential, particularly for gold and copper resources. Infrastructure developments, including hydropower from the Grand Ethiopian Renaissance Dam, are also expected to support mining operations by reducing energy costs.

Beyond mining, agricultural reforms continue to contribute to economic stability. Ethiopia has achieved wheat self-sufficiency, saving an estimated $1 billion annually in import costs, while programs consolidating millions of farmers have improved productivity and strengthened rural incomes.

As gold exports continue to expand, Ethiopia’s mining sector is increasingly viewed as a second pillar of the economy after agriculture. Analysts suggest the ongoing shift from potential to production, supported by rising investment and structural reforms, could play a pivotal role in the country’s long-term economic transformation.