Chinese Firms Commit $1.75bn for Ethiopian Solar and Mining Projects

• Five Chinese companies will invest $1 .75 billion in Ethiopia, funding solar-cell factories, energy-storage lines, and large-scale mineral ventures, according to Finance Minister Ahmed Shide.

Ethiopia is poised to receive a $1.75 billion injection from five Chinese companies that plan to build solar-cell factories and explore the country’s vast mineral reserves. Finance Minister Ahmed Shide confirmed the commitments this week, calling them “a turning point for Ethiopia’s industrial ambition.”

The flagship investment comes from CSI Solar Co.—a Shanghai-listed firm majority-owned by Canadian Solar Inc. CSI will pour $250 million into a plant that will assemble photovoltaic modules as well as containerized energy-storage systems. The factory, slated to break ground later this year, will target both domestic electrification projects and regional export markets.

Mining interests dominate the rest of the package. Sequoia Mining & Processing Plc has earmarked $600 million for coal exploration and processing, betting on Ethiopia’s little-tapped lignite and bituminous reserves. Meanwhile, Hua Ye Mining Processing Co. plans to spend $500 million to survey critical minerals—chiefly lithium, copper, and rare earths—while laying the groundwork for a dedicated special economic zone to host downstream processing plants.

Ethiopia is also drawing smaller, but still significant, solar-manufacturing bets. Hainan Drinda New Energy Technology Co. and Toyo Solar Manufacturing One Member Plc have each filed proposals to assemble high-efficiency n-type cells and panels, though financial details have not been disclosed.

According to Zeleke Temesgen, commissioner at the Ethiopia Investment Commission, all five companies are navigating local licensing approvals, including environmental reviews and incentives under Ethiopia’s revised investment code. Officials expect the paperwork to finish by early 2026.

Beyond capital, the projects promise a jolt to Ethiopia’s job market. Government estimates suggest the combined ventures could create over 10,000 direct positions and several times that number in supply-chain and support roles. Analysts say the investments align neatly with Addis Ababa’s push to diversify away from agriculture, boost export earnings, and curb the country’s chronic trade deficit.

If the deals close as planned, Ethiopia will leapfrog several regional peers in both solar-panel output and mineral-processing capacity—key sectors as Africa positions itself within global clean-energy supply chains. Finance Minister Shide called the commitments “evidence that Ethiopia’s reform agenda is winning serious industrial partners,” adding that the government aims to fast-track infrastructure links so factories can ship product swiftly to ports in Djibouti and Kenya.