Addis Ababa — Ethiopian Investment Holdings (EIH) has signed a Memorandum of Understanding (MoU) with RUSAL, one of the world’s largest producers of low-carbon aluminium, to push forward plans for a major aluminium smelter in Ethiopia.

The proposed plant will have an annual production capacity of 500,000 metric tons, positioning Ethiopia as a competitive player in both regional and global aluminium markets. The project aims to meet rising domestic demand, support industrial expansion, and curb the country’s foreign-currency spending on aluminium imports.

According to EIH, the smelter is expected to be developed over 3 to 4 years, with an operational lifespan of up to 50 years, making it one of the country’s most significant long-term industrial investments. The first phase of the project, valued at around USD 1 billion, is set to receive 70% financing from committed debt providers who have already shown strong interest in backing the initiative.

Following the MoU, EIH and RUSAL have formed a joint technical committee to guide project preparation. Early-stage activities — including site identification and a full feasibility study — are actively underway.

The partnership reflects EIH’s broader strategy to attract top-tier international investors, strengthen Ethiopia’s industrial base, and accelerate large-scale strategic projects that contribute to sustainable economic growth.