Ethiopia is moving closer to its ambition of becoming one of Africa's leading gold producers after securing a $340m financing package for a major new mining project. The deal for the Tulu Kapi gold mine, located in the west of the country, is being hailed by officials as a turning point for an economy hungry for foreign investment.

The funding for the site, which is managed by KEFI Gold and Copper, has been assembled through a combination of long-term debt from African development banks and equity from specialized investors. This final sign-off has triggered the start of full-scale construction, bringing an end to years of planning and administrative delays.

Situated roughly 360km from the capital, Addis Ababa, the mine is expected to begin commercial production by 2027. Once fully operational, experts predict the site will yield more than 160,000 ounces of gold annually. While the project will initially begin as an open-pit operation, there are already discussions regarding an underground expansion to further increase its lifespan. Authorities view Tulu Kapi as a "flagship"project that could encourage further international interest in Ethiopia's untapped mineral wealth.

According to Business Insider Africa,this push into large-scale mining reflects a broader trend across the continent, where nations are increasingly looking to mineral exports to insulate themselves against global economic volatility. If the project meets its production targets, it is expected to become a significant source of employment and infrastructure development in a region that has historically relied on small-scale, artisanal mining.