Brook Taye (PhD), chief executive of EIH, and Habtamu Tegene @EIH
Ethiopia has taken a new step toward developing its vast mineral resources after Ethiopian Investment Holdings (EIH) signed a potash mining agreement with the Ministry of Mines of Ethiopia, a move officials say could strengthen the country’s fertilizer supply chain and open a new export sector.
The agreement was signed in Addis Ababa by Brook Taye, chief executive of EIH, and Habtamu Tegene, Ethiopia’s minister of mines. The project targets the development of Ethiopia’s largely untapped potash reserves, a key input in global fertilizer production.
Speaking at the signing ceremony, Brook said the deal represents an important milestone in transforming Ethiopia’s natural resource base into industrial and economic value.
“Ethiopia has significant untapped potash resources, and this agreement is an important step toward realizing that potential,” he said. “Developing our potash resources opens new opportunities for the mining sector while supporting agricultural value chains and positioning the country to benefit from growing global demand for fertilizers and critical minerals.”
Potash is considered a strategic mineral because of its role in boosting crop yields and global food security. Ethiopia’s reserves are believed to be concentrated in the Afar Depression, one of the largest undeveloped potash basins in the world.
Habtamu said the agreement reflects a broader government strategy aimed at accelerating responsible mining development and ensuring that licensed projects translate into real production.
“We look forward to the successful implementation of the project,” he said. “Working together with the largest sovereign wealth fund in Africa creates a strong opportunity to help utilize Ethiopia’s mineral potential.”
EIH, which manages major state assets across sectors including telecom, logistics and manufacturing, has increasingly been tasked with spearheading strategic investments aligned with Ethiopia’s industrial policy.
The potash deal comes as the government seeks to diversify exports and reduce the country’s heavy reliance on agricultural commodities such as coffee. Ethiopia also imports large volumes of fertilizer each year, making domestic production a strategic priority.
If successfully developed, the project could alter Ethiopia’s fertilizer supply dynamics and reduce foreign currency spending on imports. It may also attract international mining partners and infrastructure investment in the Afar region.
Industry analysts say the agreement signals renewed momentum in Ethiopia’s mining sector after years of slow project development, potentially positioning the country as a future supplier in the global potash market, where demand is expected to grow alongside food production needs.