Addis Ababa — Ethiopia has taken a new step toward developing its mineral resources after Ethiopian Investment Holdings (EIH) signed a potash mining agreement with the Ministry of Mines (Ethiopia), a move officials say could help transform the country into a significant player in the global fertilizer supply chain.

The agreement was signed by Brook Taye, Chief Executive Officer of EIH, and Habtamu Tegene, Ethiopia’s Minister of Mines.

The deal signals renewed government efforts to accelerate the development of strategic mineral resources while strengthening Ethiopia’s industrial and agricultural value chains.

Unlocking Ethiopia’s Potash Potential

Potash — a key ingredient used in fertilizer production — is one of Ethiopia’s most promising yet largely untapped mineral resources. Significant deposits have been identified in the Danakil Depression in northern Ethiopia, a geologically unique region believed to contain some of the world’s largest undeveloped potash reserves.

Global demand for potash has been steadily increasing as countries seek to boost agricultural productivity and ensure food security. Fertilizer supply disruptions in recent years, partly triggered by geopolitical tensions involving major producers such as Russia and Belarus, have further heightened the strategic importance of new potash sources.

Ethiopia’s government sees the development of domestic potash production as both an export opportunity and a way to support the country’s agricultural sector.

Speaking at the signing ceremony, EIH CEO Brook Taye emphasized the broader economic potential of the project.

“Ethiopia has significant untapped potash resources, and this agreement is an important step toward realizing that potential,” Brook said.
“Developing our potash resources opens new opportunities for Ethiopia’s mining sector, strengthens industrial capacity, and supports agricultural value chains while positioning the country to benefit from growing global demand for fertilizers and critical minerals.”

Brook added that the project aligns with Ethiopia’s evolving mining strategy, which aims to prioritize companies capable of actively developing mineral resources rather than holding exploration licenses without progress.

“As Ethiopia moves toward a strategy of issuing mining licenses to companies that effectively utilize the opportunity rather than hoard the resources, EIH is honored to be entrusted with actualizing this long-aspired vision,” he said.

A Strategic Role for Ethiopia’s Sovereign Wealth Fund

The involvement of Ethiopian Investment Holdings — Africa’s largest sovereign wealth fund — highlights the government’s strategy of using state investment vehicles to catalyze large-scale projects in strategic sectors.

EIH manages dozens of state-owned enterprises across sectors including energy, logistics, telecom, and finance, and has increasingly taken a role in attracting investment and structuring major projects.

Officials say the potash project could help diversify Ethiopia’s export base, which has historically relied heavily on agricultural commodities such as coffee.

Minister of Mines Habtamu Tegene welcomed the agreement and reaffirmed the government’s support for the initiative.

“I would like to congratulate everyone involved in reaching this milestone,” he said.
“Working together with the largest sovereign wealth fund in Africa creates a strong opportunity to help utilize Ethiopia’s mineral potential.”

He added that the Ministry will work closely with EIH to ensure the project progresses successfully.

“The Ministry stands ready to support the project in any way possible.”

Part of Ethiopia’s Broader Mining Strategy

The agreement comes as Ethiopia seeks to expand its mining sector as part of broader economic reforms aimed at boosting exports, attracting investment, and strengthening foreign currency earnings.

While the country is known for gold production and emerging lithium exploration, large-scale potash development has long been viewed as one of Ethiopia’s biggest untapped opportunities.

Previous attempts to develop the sector have faced delays due to infrastructure challenges, financing constraints, and political instability in the northern region where major deposits are located.

However, officials believe renewed investment and stronger institutional support could help move projects forward.

Fertilizer Security and Economic Impact

Beyond exports, domestic potash production could also reduce Ethiopia’s reliance on imported fertilizers.

Ethiopia imports large quantities of fertilizer annually to support its agricultural sector, a key pillar of the economy that employs a majority of the population.

Developing local potash production could help stabilize fertilizer supply, support agricultural productivity, and improve the country’s trade balance.

Government officials say the project also has the potential to create jobs, stimulate related industries, and contribute to Ethiopia’s long-term industrialization goals.

Toward Responsible Resource Development

Authorities say the initiative will prioritize responsible mining practices and sustainable resource development, aligning with Ethiopia’s broader economic ambitions.

The agreement reflects ongoing collaboration between the Ethiopian government and Ethiopian Investment Holdings to harness natural resources while ensuring long-term economic value.

If successfully implemented, the project could mark a turning point for Ethiopia’s mining sector and position the country as a new entrant in the global potash market.