EIH-Backed Akobo Minerals Eyes Expansion in Ethiopia Amid Record Gold Prices

Akobo Minerals, a boutique Scandinavian gold producer, looks to expand its operations in Ethiopia after acquiring an additional exploration license in Abobo Woreda, Gambela Regional State.

The company, which is currently engaged in gold production in Dima Woreda of the Segele Shama Gold District, covering a 16-square-kilometer mining area, has now been granted a new license for exploration at a site around 160 kilometers away, according to Tamiru Hailu, General Manager at Etno Mining, Akobo’s Ethiopian subsidiary.

“We will begin exploration this year,” Tamiru told Shega on the sidelines of the High-Level Ethiopia–Sweden Business Forum held at the Sheraton Hotel on Wednesday evening.

Akobo has operated in Ethiopia for the past 15 years and reached a successful production in 2024 . The company, named after the Akobo River that flows from Mizan Teferi to the Pibor River bordering South Sudan, sold a 7.4% stake to Ethiopia’s sovereign wealth fund in August for around $3 million . Ethiopian Investment Holdings (EIH) subscribed to 15 million new shares through a private placement as part of its strategy to diversify investments and deliver long-term returns.

Tamiru said the EIH investment will be used to expand Akobo’s operational capacity over the coming year and increase production a few times over.

“It was a timely investment,” he said.

A joint statement by Akobo and EIH back during the share deal indicated plans to increase gold production capacity from 5–10kg of gold per month to 50–80kg, aided by the Fund’s capital injection

According to Akobo’s company presentation in May its current production levels are limited due to constrained underground access set to be remedied via new vertical shaft is to provide consistent access to high-grade zones.

Gold prices reached unprecedented levels between August 2024 and July 2025, surging past $4,000 per ounce as global investors sought safe-haven assets amid inflation, geopolitical strife, and a weakening dollar.  For Ethiopia, this price boom translated into a sharp increase in export earnings: during the same period, the country exported tens of tonnes of gold, helping to make the mining sector, and gold in particular, the single largest contributor to export revenue.