Ethiopia has moved closer to becoming a meaningful gold producer after securing about $340 million in financing to develop the long-delayed Tulu Kapi project, the country’s largest modern gold mine.
The funding package paves the way for construction to begin and includes roughly $240 million in long-term debt from African development finance institutions, alongside about $100 million in equity. This provides KEFI Gold and Copper, the project developer, with the capital needed to advance Tulu Kapi into full-scale development.
KEFI Executive Chairman Harry Anagnostaras-Adams confirmed that the debt facility has now been formally signed by all parties, triggering renewed activity at the site as the project enters the construction phase. Finalisation of the remaining equity component is underway with local and specialist investors.
“With gold prices at record levels, the timing is ideal to launch Tulu Kapi,” he said.
Early works, including housing, power connections and road access, are already in progress as preparations accelerate for main construction.
Located around 360 kilometres west of Addis Ababa, the open-pit mine is expected to produce about 164,000 ounces of gold annually during its first seven years, with commercial production targeted for 2027. At that level, Tulu Kapi is set to become one of Ethiopia’s most important gold operations and a significant source of foreign exchange.
The project is being developed in partnership with the Ethiopian government, which holds a carried interest and has committed to an equity stake, reflecting the country’s strategy to position mining as a driver of economic growth and hard-currency generation.
Designed with potential for underground expansion, Tulu Kapi could extend its mine life beyond the initial plan. Government officials see it as a flagship investment capable of attracting further foreign capital into Ethiopia’s largely underdeveloped mineral sector.
As African economies seek to extract greater value from natural resources amid currency pressures and global uncertainty, the successful delivery of Tulu Kapi could mark a turning point for Ethiopia’s mining industry—translating mineral wealth into jobs, infrastructure, and much-needed foreign earnings.
