Ethiopian sovereign wealth fund backs gold miner
Akobo Minerals, a Scandinavian-based gold producer operating in Ethiopia, has secured an investment from Ethiopian Investment Holdings.
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Akobo Minerals, a Scandinavian-based gold producer operating in Ethiopia, has secured an investment from Ethiopian Investment Holdings (EIH), the country’s sovereign wealth fund.
EIH will take a 7.4% stake through the private placement of 15 million new shares at $0.20 each, raising $3 million. It is the first time Ethiopia’s sovereign fund has invested in an international company. The proceeds will finance construction of a new vertical shaft, aimed at lifting monthly output from 5–10kg to 50–80kg.
Dr. Brook Taye, CEO of EIH, commented: “Our investment in Akobo Minerals represents a historic and strategic breakthrough for Ethiopia’s economic expansion. As our first international mining stake, it reflects our 3D strategy – we diversify our investment portfolio, drive long-term innovation, and deliver benefits for the nation. Akobo’s sustainable approach and expertise make it the perfect partner for this milestone.”
Jørgen Evjen, CEO of Akobo Minerals, stated: “We are honored to be the first international company selected for investment by Ethiopian Investment Holdings. This milestone validates the strength of our Segele project and the confidence in our long-term vision. As the initiator of this investment opportunity, we are also proud to be paving the way for all Ethiopian investors to participate in supporting their own industry. By investing in Akobo Minerals in the same way as EIH, Ethiopian stakeholders can take part in the growth and success of one of the country’s most promising sectors. This has been a long process maturing over an extended period, and it now fits together with Ethiopia’s broader economic reforms, creating a unique window of opportunity.”
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