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As governments are increasingly seeking to capture more value from their natural resources, particularly gold, Ethiopia has secured $340 million in development financing for its long-delayed Tulu Kapi gold project.
The development comes as the government is actively reforming the sector, reducing taxes and simplifying licensing, to capture more foreign currency, while using mining to support broader industrialization
Despite the current official gold exports government estimates that even larger amounts are smuggled out of the country, annually due to incentives in the informal market.
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.
“We are delighted that the Tulu Kapi debt offering has now been signed by all the relevant parties,” said KEFI Executive Chairman, Harry Anagnostaras-Adams.
“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.
Commercial production at Tulu Kapi is expected to start in 2027, boosting Ethiopia’s foreign currency revenue.
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.
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.
