Ethiopian Investment Holdings (EIH), the nation’s sovereign wealth fund acting as the strategic investment arm of the federal government and incorporating 40 key state-owned enterprises, has signed another large investment deal.
It has formally signed a potash mining agreement with the Ministry of Mines of Ethiopia today. It should be recalled that EIH previously signed an investment deal with the Nigerian conglomerate Dangote to develop a fertilizer project.
The agreement was signed by Brook Taye (PhD), CEO of EIH, and Habtamu Tegene(Eng.), Minister of Mines. The new deal reportedly grants EIH a commercial-scale production license for a 365-square-kilometer site in the Danakil Depression, specifically within the Dallol Woreda of the Afar Regional State.
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Ethiopia’s Danakil Depression is geologically recognized for its massive evaporite deposits. Available data show the region holds between 11 and 12 billion tonnes of potash-bearing salt beds. Potash is a critical ingredient for potassium-based fertilizers. The sector has seen various international interest over the decades; notable past actors include Allana Potash and Yara International. However, many projects faced delays or exits due to infrastructure challenges, tax disputes, or fluctuating global commodity prices.
