Ethiopia’s Sovereign Fund Makes First International Bet on Boutique Scandinavian Gold Miner

Ethiopian Investment Holdings (EIH), the government’s sovereign wealth fund, has made its first international investment, subscribing for 15m new shares in Akobo Minerals AB, a Scandinavian gold producer operating in Ethiopia. The deal, worth $3m at $0.20 per share, gives EIH a 7.4% stake in the company.

EIH was established in 2022 to manage and optimize the country’s portfolio of state-owned commercial assets, which includes Ethiopian Airlines, the Commercial Bank of Ethiopia, Ethio Telecom and Ethiopian Shipping and Logistics. The fund’s mandate includes taking strategic stakes in domestic and foreign companies.

Brook Taye (PhD), EIH’s chief executive, described the Akobo investment as “historic” and aligned with the fund’s strategy to diversify its holdings and deliver long-term returns. Akobo’s operations, he said, offered a combination of proven reserves and a track record in environmental and social governance.

Akobo Minerals, which has been active in Ethiopia for over 14 years, holds an exploration license covering 166 sq km and a mining license for 14 sq km in the Gambella region. Its flagship Segele deposit has an indicated resource of 68,000 ounces at a grade of 22.7g per tone. The firm, listed in Oslo, Frankfurt and on the OTC Pink Market, aims to raise production from 5–10kg of gold per month to 50–80kg, supported by EIH’s capital injection.

Jørgen Evjen, Akobo’s chief executive, said the investment marked a milestone for the company and for Ethiopia’s engagement in international capital markets. He expressed hope that the deal could encourage more Ethiopian investors to participate in the mining sector.