Ethiopia: New Era for Mining Sector with Inauguration of Segele Gold Mine

A historic turning point in Ethiopian gold mining

After three decades without new mines in production, Ethiopia takes a decisive step forward with the inauguration of the Segele gold mine, chaired by Prime Minister Abiy Ahmed on November 20, 2024. This project marks the first industrial gold mining operation since 1994, a symbol of the revival of the mining sector in the country.

Led by the Norwegian company Akobo Minerals , the Segele mine has mineral resources estimated at 68,000 ounces of gold, with encouraging prospects for new discoveries.

“This new investment marks a decisive step towards efficient and high-quality gold extraction, while addressing the challenges posed by illegal mining,” said the Ethiopian Prime Minister.

An ambitious reform strategy

Since 2019, Ethiopia has implemented major reforms to attract investors and modernize the mining sector. Among these measures, reducing the mining corporate tax rate from 35% to 25% has made the country more competitive in the global natural resources market.

These reforms are beginning to bear fruit, as evidenced by the ambitious projects launched by international companies:

• KEFI plans to invest $240 million to build the Tulu Kapi gold mine, which is expected to begin production in 2026 with an annual capacity of 135,000 ounces.
• Allied Gold is investing $500 million to develop the Kurmuk gold mine, with annual production estimated at 240,000 ounces by 2026.

A significant economic impact

Revenues from the gold sector are expected to grow significantly. Gold already accounted for 5.3% of Ethiopia’s export revenues in 2022-23, according to the Central Bank. With Segele coming on stream and upcoming projects at Tulu Kapi and Kurmuk, Ethiopia aims to strengthen its position as a major player in the international gold trade.

Conclusion: A lever for economic growth

The inauguration of the Segele mine marks a historic milestone for the Ethiopian mining sector. Thanks to strategic reforms and the interest of international investors, Ethiopia is opening a new page in its economic development. These initiatives are expected not only to generate substantial revenues, but also to transform the mining sector into a central pillar of the national economy.