The Ministry of Mines has awarded a potash production licence to Ethiopia Investment Holding, clearing the company to proceed with development plans under a signed production agreement.

The potash project is reported to have followed an application submitted by Ethiopia Investment Holding for a commercial-scale mining licence in July 2025. The company is also understood, based on previously circulated information, to have secured rights to a 365 square kilometre potash reserve in Dalul Woreda in the Afar region.

The development builds on earlier institutional steps. In its fifth regular session held in January, the Council of Ministers reviewed draft agreements related to fertiliser and potash production licences, laying the groundwork for subsequent approvals.

The licence forms part of agreements concluded with two other mining companies, with a combined investment exceeding 4.2 billion US dollars.

Alongside the fund, the approvals cover ZY TB-DAIM Steel Manufacturing PLC and Bero Mining and Trading PLC. ZY TB-DAIM Steel Manufacturing has been awarded an iron ore production licence, while Bero Mining and Trading received a gold production licence.

The potash project is among the mining initiatives the government is supporting as part of efforts to expand industrial output and strengthen the sector’s contribution to the economy. Reports have indicated that the Danakil Depression contains an estimated 11 to 12 billion tonnes of potash-bearing salt beds, making it potentially one of the world’s largest undeveloped potash mineral deposits.

The ministry added that the production licence follows completion of regulatory requirements and formal approval procedures, paving the way for the company to begin the next phase of development.

The state asset manager’s total assets reached 8.2 trillion birr as of early 2026. Portfolio companies under the fund generated over 1.3 trillion birr in revenue in the first six months of the current fiscal year, reflecting a 51 percent year-on-year increase. 

EIH manages over 40 state-owned enterprises, including flagship entities such as Ethiopian Airlines and Ethio Telecom. The portfolio employs around 250,000 people and contributes significantly to national output.