South Korea’s HD Hyundai Infracore has reported an unprecedented 470 percent jump in equipment sales in Ethiopia this year, reflecting the country’s accelerating mining boom and rising appetite for industrial machinery. The company, which sells construction and mining equipment under the Develon brand, said it delivered around 1,300 units in 2025—its highest annual volume to date in the East African market.

Mining Boom Fuels Equipment Demand

Ethiopia’s mining sector has emerged as one of Africa’s fastest-growing extractive industries. According to data from the Ministry of Mines, the sector expanded by 162 percent year-on-year in the 2024/25 fiscal period, driven largely by artisanal and mid-scale gold operations. Official exports of gold reached US $3.4 billion, up sharply from the previous year’s US $1.3 billion, as the government intensified efforts to formalize small-scale mining and attract foreign investment.

This rapid expansion has fueled demand for robust and fuel-efficient machinery. The 36-ton Develon DX360 excavator alone accounted for roughly nine out of every ten units sold by HD Hyundai Infracore in the country. The model’s reputation for durability and fuel economy has made it the preferred choice for mining contractors operating in remote and power-limited regions.

Strengthening Local Operations

To consolidate its position, HD Hyundai has significantly strengthened its after-sales infrastructure. Through the Develon Care Program, the company now offers periodic equipment inspections, advanced operator training, and on-site maintenance assistance. Ethiopian customers also benefit from improved spare-parts availability and faster service response times—key factors in heavy-duty mining environments where downtime can cost thousands of dollars per day.

Earlier this year, in March 2025, the company secured a 100-unit bulk order from a consortium of local mining firms—the largest single order HD Hyundai has ever received from Ethiopia. The firm now controls an estimated 57 percent share of the country’s construction and heavy-equipment market, outpacing rivals from China and Europe.

Ethiopia as a Regional Growth Hub

Executives at HD Hyundai view Ethiopia as a strategic hub for the company’s broader African expansion. Sales from the Ethiopian market now represent more than one-third of its total business across the continent, surpassing established markets in Nigeria and South Africa. The company plans to leverage Addis Ababa’s growing role as a logistics and trade center to reach neighboring markets in Kenya, Sudan, and Djibouti.

Ethiopia’s infrastructure pipeline has further reinforced the market outlook. Projects such as the Bishoftu International Airport, the Addis Ababa–Djibouti Corridor expansion, and the Koisha hydropower project are generating sustained demand for heavy-duty equipment across construction and energy sectors.

Government Policy and Industry Outlook

The Ethiopian government’s renewed focus on mining as a foreign-exchange earner is also attracting equipment makers. Policy reforms introduced since 2023 have streamlined mining licenses, expanded geological surveys, and allowed private gold trading through the Ethiopian Commodity Exchange (ECX)—creating a more transparent and profitable ecosystem for operators and suppliers alike.

Analysts expect mining equipment demand to grow by at least 30 percent annually over the next three years if commodity prices remain stable. HD Hyundai aims to maintain its leadership through localized assembly, potential financing partnerships with Ethiopian banks, and digital fleet-management systems to improve operational efficiency for clients.

“Ethiopia has become one of our most promising growth markets in Africa,” a company representative said. “With its expanding mining and infrastructure sectors, we see long-term potential for both economic development and industrial cooperation.”