Ethiopian Investment Holdings (EIH), Africa’s largest sovereign wealth fund, has acquired a 7.4% stake in Scandinavian gold explorer Akobo Minerals — its first international equity investment — in a move seen as both symbolic and strategic for the country’s return to global capital markets after more than a century.
According to Akobo’s disclosure on Monday, the stake was secured through a private placement of 15 million shares at $0.20 each, raising $3 million in gross proceeds. The funds will finance the construction of a vertical shaft aimed at boosting Akobo’s monthly gold output from 5–10 kg to 50–80 kg — a projected increase of 700–900%.
The investment aligns with EIH’s “3D” mandate — diversify, drive, and deliver long-term value through global market integration and active state asset management.
Brook Taye, EIH’s CEO, hailed the deal as “a historic and strategic breakthrough for Ethiopia’s economic expansion,” citing Akobo’s sustainable practices and technical expertise as major draws. Jørgen Evjen, Akobo CEO, called it “an honor” to be the fund’s first international investment, adding that the move could encourage Ethiopian investors to participate more directly in the country’s mining sector.
Gold output surge fuels optimism, debt risks linger
Gold remains one of Ethiopia’s largest foreign exchange earners, generating $1.88 billion in the 2024/25 fiscal year. Analysts project exports could hit 33 tonnes by year-end, potentially ranking Ethiopia among Africa’s top gold exporters.
In Q1 2025, Akobo posted revenue of SEK 4.5 million ($466,395), buoyed by record gold prices as investors sought safe-haven assets amid global uncertainty.
However, profitability remained under pressure: EBITDA dropped to SEK 10 million ($1.04 million), cash flow slid to SEK 21.2 million ($2.20 million) before recovering to SEK 7.8 million ($807,671) by year-end, aided by a NOK 11.4 million ($1.11 million) convertible bond issue.
Shareholders’ equity stayed negative at SEK 157.8 million ($1.64 million), with long-term debt at SEK 314.4 million ($3.26 million).
Gambela’s strategic edge
Akobo’s operations are anchored in Ethiopia’s Gambela Region, which boasts rich natural resources, strategic transport links, and a mix of skilled and unskilled labor. The area hosts long-standing alluvial gold mining sites in Dimma along the Akobo, Baro, and Gilo rivers, as well as large-scale farms such as Karuturi Global that employ significant portions of the local population.
With Gambela Airport providing key logistical support, Akobo expects to reduce both operational and export costs, with minimal reliance on imported labor.
Figures, initially reported in Swedish and Norwegian kroner, were converted to US dollars using average exchange rates for the first half of 2025 — SEK 1 at $0.099 and NOK 1 at $0.095.
