The Energy Transition in Ethiopia

Ethiopia is emerging as a leader in Africa’s clean energy landscape, driven by its abundant renewable energy resources and a growing focus on sustainability. The country’s energy mix is heavily reliant on hydropower and geothermal energy, both of which offer significant potential for future development. Ethiopia is also increasingly investing in wind power, which, alongside its extensive hydropower and geothermal resources, positions the country to meet rising energy demands while reducing carbon emissions. As part of its commitment to the energy transition, Ethiopia is prioritising ESG reforms, which support sustainable development and ensure responsible resource management. With a focus on clean energy, Ethiopia is also turning to its emerging critical mineral resources, such as lithium and tantalum, to fuel its growing role in the global green energy transition. Ethiopia is rich in critical minerals that are essential for the global energy transition, including tantalum, lithium, gold, niobium, and platinum. These minerals are key for the production of renewable energy technologies, such as batteries for electric vehicles, solar panels, and energy storage systems. Ethiopia’s lithium and tantalum deposits, in particular, are drawing increasing interest as the world’s demand for these materials grows. In addition to its significant mineral resources, Ethiopia is a key player in the production of essential minerals such as silver, gypsum, and limestone, which support the country’s industrial and infrastructure sectors. As Ethiopia develops its critical minerals sector, it is poised to play an increasingly important role in the global mineral supply chain, supporting both regional economic growth and the global clean energy transition.