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Rashmi Group signs Ethiopia mining MoU, seeks gold licenses
The proposed investment will focus on gold exploration and mining development
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Amit Deshmukh - Thu, 21, May 2026
- 03:08 EDT
- 15
The MoU exchange took place between Sunil Kumar Patwari, CEO of Rashmi Group, and Zeleke Temesgen in the presence of Ahmed Shide and Brook Taye. / Rashmi Group
India’s leading steel and mining conglomerate, Rashmi Group, has signed a memorandum of understanding for an investment of approximately $300 million in Ethiopia’s rapidly growing mining sector during the “Invest in Ethiopia – High-Level Business Forum 2026” held in Addis Ababa.
The Group has also applied for gold mining licenses in Ethiopia’s mineral-rich Gambela and Benishangul-Gumuz regions, areas known for significant gold deposits associated with quartzite veins and the greenstone belts of the Arabian-Nubian Shield.
The MoU exchange took place between Sunil Kumar Patwari, CEO of Rashmi Group, and Zeleke Temesgen in the presence of Ahmed Shide and Brook Taye.
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The proposed investment will focus on gold exploration and mining development, along with the establishment of aggregate production and mineral processing infrastructure to support Ethiopia’s expanding industrial, infrastructure and construction sectors.
The investment aligns with Ethiopia’s ongoing Home-Grown Economic Reforms 2.0, a major economic liberalization initiative aimed at accelerating private-sector-led growth, improving the investment climate, attracting foreign direct investment and strengthening export-oriented industries. Ethiopia is increasingly positioning itself as a strategic manufacturing and resource-processing hub in Africa.
Mining has emerged as one of the key pillars of Ethiopia’s long-term economic growth strategy, supported by regulatory reforms, growing international investor participation and the country’s vast untapped reserves of gold, potash, rare earth elements and other critical minerals. Ethiopia is also advancing plans to establish a modern gold refining ecosystem that could significantly enhance value addition, transparency and export competitiveness in the precious minerals sector.
It is noteworthy that Africa produces nearly 800 tons of gold annually, accounting for approximately 25% of global gold production, yet gold refining capacity across the continent remains limited outside South Africa.
Commenting on the growing India-Africa economic partnership, Anil Kumar Rai said:
“India’s expertise in mineral prospecting, exploration, mine development, refining and metallurgy has strong potential to expand across Africa, particularly in Ethiopia. Ethiopia’s geostrategic location, talented workforce, economic reforms under the Home-Grown Economic Reform Agenda and strong focus on public-private-led investments make it an increasingly attractive investment destination. According to IMF forecasts for 2026, Ethiopia is expected to grow at 9.2%, making it one of the fastest-growing economies in the world. The elevation of India-Ethiopia relations to a Strategic Partnership provides additional confidence for Indian investors. I am confident that more Indian companies will explore Ethiopia with a long-term vision across sectors including mining and metallurgy.”
Sunil Kumar Patwari, CEO of Rashmi Group, added:
“Africa represents one of the world’s most promising frontiers for responsible mining and industrial growth. Ethiopia’s reform-oriented economic policies, improving investment ecosystem and strategic access to African markets make it an attractive long-term investment destination. Our proposed $300 million investment reflects our confidence in Ethiopia’s future and our commitment to using Ethiopia as a gateway for broader engagement across Africa. Through technology transfer, infrastructure development, mineral processing and local employment generation, we aim to contribute to Ethiopia’s economic transformation while strengthening India-Africa economic cooperation.”
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