From Hydroelectric Power to Bitcoin: Ethiopia’s Rise as a Mining Hub

Ethiopia is quickly emerging as a significant hub in the Bitcoin mining industry, having generated an impressive $55 million over the past ten months. This remarkable growth can be largely attributed to the country’s abundant and affordable energy resources, especially hydropower, which have attracted numerous companies, particularly those relocating from China since. The Ethiopian Electric Power (EEP) has committed 600 megawatts of electricity to support these operations, giving Ethiopia a notable 2.25% share of the global Bitcoin mining market. In February, Ethiopian Investment Holdings revealed a preliminary agreement with Hong Kong’s West Data Group to inject $250 million into boosting the nation’s digital infrastructure. Although the specifics of the deal are still emerging, the government has consistently highlighted these efforts as crucial components of its high-performance computing strategy, which prominently includes Bitcoin mining. In an interview with BBC News Africa, Kal Kassa, Founder and Educator at Bitcoin Birr in Addis Ababa and Advisor at West Data Group, shared insights into Ethiopia’s rise as a key player in the global Bitcoin mining scene. “Ethiopia is becoming a major hub for Bitcoin mining due to our extremely competitive electricity prices,” Kal explained. “At just 3.2 cents per kilowatt-hour, our electricity is much cheaper than many other parts of the world.” Kal highlighted Ethiopia’s reliance on renewable energy, with over 92% of its power coming from sources like hydroelectricity, notably the Grand Ethiopian Renaissance Dam (GERD), a $6 billion project that generates six gigawatts of power from the Nile River. “This combination of low electricity costs and sustainable energy sources is why Bitcoin miners are flocking to Ethiopia,” he said. While Bitcoin mining has traditionally been concentrated in countries like the United States, Russia, and China, rising energy costs in those regions have led many miners to seek out more affordable alternatives. Ethiopia now commands about 5% of the global Bitcoin hash rate, a measure of the computing power used in mining. “Previously, miners were operating in places like Venezuela and Kazakhstan, but Ethiopia now offers a more favorable energy market,” Kal explained. The influx of miners has had a noticeable impact on the Ethiopian economy. “Currently, there are 20 registered mining companies in Ethiopia, with 11 operational,” Kal said. “Around 80% of these companies are from China, with the remainder coming from Russia and the United States.” This surge in mining activity has translated into substantial revenue for Ethiopia’s state-owned utility, Ethiopian Electric Power (EEP), which earned $55 million from Bitcoin miners in the past year. Over the next year, that figure is expected to rise to $123 million. “The revenue generated from Bitcoin mining can be used to further develop Ethiopia’s power grid and provide electricity to the approximately 50% of Ethiopians who currently lack access,” He noted. Despite the ban on cryptocurrency trading, which reflects a cautious stance toward the volatile market, authorities in Ethiopia are actively developing regulations for crypto mining. Over the past two years, there has been a notable increase in crypto-mining companies establishing operations in the country, driven by relaxed regulatory restrictions and a modest boost in electricity generation capacity. Ethiopia’s growing prominence in the Bitcoin mining industry highlights its strategic use of renewable energy and competitive pricing.

Ethiopia’s Economic Reform Gains Momentum: IMF Unlocks $251 Million Boost

The International Monetary Fund (IMF) has reached a significant milestone with Ethiopia, concluding a staff-level agreement on the second review of the four-year Extended Credit Facility (ECF) arrangement. This agreement underscores the progress Ethiopia is making in its homegrown economic reform program, signaling hope for continued growth and stability. A Strategic Partnership for Economic Reform In July 2024, the IMF approved a $3.4 billion ECF arrangement to support Ethiopia’s ambitious economic reform program. Now, with the second review nearing formal approval, Ethiopia is set to access an additional $251 million. These funds are expected to bolster ongoing efforts to stabilize the economy and create a conducive environment for sustainable growth. IMF staff, led by Mr. Álvaro Piris, conducted extensive discussions with Ethiopian officials, including Finance Minister Ahmed Shide and National Bank Governor Mamo Mihretu, during a mission from November 12 to 26, 2024. The delegation also engaged with key stakeholders from the banking and business sectors to assess the progress and priorities of Ethiopia’s economic program. Key Achievements and Progress One of the standout successes of Ethiopia’s reform program is the transition to a market-determined exchange rate. This policy shift has played a pivotal role in easing foreign exchange shortages, a persistent challenge for the Ethiopian economy. The narrowing of spreads between official and parallel exchange rates—now below 10%—highlights the positive impact of these reforms. Other achievements include: Eased FX Surrender Requirements: Businesses are now experiencing more flexibility, leading to improved currency liquidity. Nascent Interbank FX Market: Increased activity in this market is promoting transparency and efficiency in currency exchange. Launch of a Domestic Interbank Money Market: A critical step in modernizing Ethiopia’s financial infrastructure. Promising Economic Outlook With macroeconomic stability supported by prudent policy measures, Ethiopia is poised for growth. The recently approved supplementary budget by the Council of Ministers aims to address tight liquidity conditions while maintaining fiscal discipline. Additionally, Ethiopia is transitioning to interest rate-based monetary policy, ensuring inflation remains under control. The IMF emphasized that tight monetary and financial conditions are crucial during this transition to secure long-term economic stability. Gratitude and Collaboration Mr. Piris expressed the IMF’s gratitude for the Ethiopian authorities’ dedication and proactive measures in implementing the economic program. He also commended the constructive dialogue with Ethiopian officials and stakeholders, which has been instrumental in advancing the reform agenda. The next steps involve the approval of the agreement by the IMF management and Executive Board in the coming weeks. Future reviews of the ECF arrangement will occur every six months, ensuring that Ethiopia’s progress remains on track. As Ethiopia continues its journey of economic transformation, the collaboration with the IMF serves as a testament to the country’s commitment to reform and resilience. With improved foreign exchange conditions, controlled inflation, and a clear focus on sustainable growth, Ethiopia is setting a strong foundation for a more prosperous future.

In Memory of Captain Mohamed Ahmed: The Leader Who Took Ethiopian Airlines to New Heights

The Ethiopian aviation industry has lost one of its most iconic pioneers with the passing of Captain Mohamed Ahmed (1932–2024). As a former CEO of Ethiopian Airlines, Captain Mohamed dedicated over a decade of his career to steering the airline through some of the most challenging and transformative periods in its history. His contributions not only elevated Ethiopian Airlines to new heights but also left an indelible mark on the global aviation industry. Born in Harar, Ethiopia, in 1932, Mohamed Ahmed grew up in a family that instilled in him a deep sense of purpose and ambition. After a brief stint in the Ethiopian Air Force, he pursued higher education, earning a Bachelor of Science degree in Aeronautical Engineering from Saint Louis University. He later completed an executive program at Stanford University, equipping him with the technical expertise and leadership acumen to excel in the field of aviation. Captain Mohamed’s journey with Ethiopian Airlines began in the 1960s as the chief aeronautical engineer. His technical knowledge and visionary thinking played a foundational role in shaping the airline’s early development. By 1980, he ascended to the role of CEO, a position he held during one of the most tumultuous eras in Ethiopia’s history. At the time, the airline faced operational challenges exacerbated by the Ethiopian Civil War and political interference from the Derg regime. Captain Mohamed’s leadership was nothing short of transformative. His steadfast commitment to preserving the airline’s independence from political influence ensured its survival and growth. Amid Cold War pressures, he boldly resisted government proposals to replace American aircraft with Soviet models, a move that would have compromised the airline’s global competitiveness. Under his leadership, Ethiopian Airlines entered a period of stability and prosperity by the late 1980s. His decisive actions, including workforce optimizations and strategic partnerships, restored the airline’s reputation for excellence and innovation. Captain Mohamed’s achievements extended beyond Ethiopian Airlines. In 1992, he became the Secretary General of the African Airlines Association, where he championed the interests of African aviation on the global stage. American writer Paul B. Henze, who met Captain Mohamed in 1990, described him as one of the top entrepreneurs in the developing world, a leader deeply committed to his homeland and its progress. Today, the aviation community and the nation mourn the loss of a leader whose vision and determination helped build a cornerstone of Ethiopia’s modern identity. Captain Mohamed Ahmed was laid to rest at the Kolfe Muslim Cemetery in Addis Ababa. His funeral was attended by Ethiopian Airlines Group CEO Mesfin Tasew, senior management, employees, former colleagues, family, and friends—a testament to the profound impact he had on so many lives. Captain Mohamed Ahmed’s life was a testament to resilience, innovation, and an unwavering commitment to excellence. His legacy will continue to inspire not only those within Ethiopian Airlines but also generations of Africans striving to make their mark on the global stage. Ethiopian Airlines stands today as a beacon of African aviation, a living tribute to his leadership and vision. Captain Mohamed Ahmed’s contributions remind us that great leaders not only guide institutions through challenges but also leave behind legacies that endure. His work has etched his name into the annals of Ethiopian history and the hearts of all who had the privilege of knowing him. May he rest in peace. My favorite story about Capt. Mohamed is one told by my father who was the head of the post office at the time Capt. Mohamed was heading Ethiopian Airlines. Captain Mohammed would say to my father, “I make millions in profit, not thousands like you” and my father would reply “you know I sell stamps to make profit, you fly jets”. It is a big loss for Ethiopia. A big condolences for his families and Ethiopian Airlines and Ethiopia, too. I heard this gentleman was the one who fought off Mengistu from meddling into the business of the iconic airline. One ally on the side of this patriot was that Mengistu was too dumb to understand the intricacies of the airline business. May he rest in eternal peace!!! True. He is my uncle, my mom’s older brother. First day as the CEO of E A, he removed all Mengistus and communist leaders pictures out of the airport. Mengistu might be dumb but he was smart enough to let him do it his way or at the least negotiated with him. He also immediately fired about 400 employees that were there just because they were soldiers. My sister once asked him to get her a job there. He said sure, go talk to Mulu at the office. So my sister went and talked to Mulu. Mulu welcomed my sister with big hug and told her that she heard great things about her and was expecting her. She then handed her a form and said, fill this up and go behind the last person in line. Good luck, I know you’ll pass all the tests. That’s how he made Ethiopian Airlines one of the best. He hired the most qualified people. No favoritism. He was a sta d up guy, a man of principle, a model of integrity. RiP Save my name, email, and website in this browser for the next time I comment. Δdocument.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() );

Ethio Telecom Launches Digital ID Printing Service

Addis Ababa, November 10, 2017 (FBC) – Ethio Telecom has introduced a new service enabling the printing of National Digital IDs, making it more convenient for customers to access their identification cards. This innovative service allows customers to submit their ID print requests online through the Telebirr SuperApp or the official website https://teleprint.fayda.et/. Once the request is completed, the printed IDs can be collected at any of the 63 service centers located across Addis Ababa. To use the service, customers must: This streamlined process aims to save time by eliminating the need for multiple visits to service centers. Customers can also track the progress of their requests online, ensuring transparency and reliability. Ethio Telecom has tailored the pricing structure to accommodate varying needs and urgency levels: This new service offers several advantages: Ethio Telecom emphasized that this initiative aligns with its commitment to leveraging digital technology to enhance service delivery and meet the growing demands of its customers. The company also noted that this service is part of a broader effort to modernize identification systems in Ethiopia, supporting the country’s digital transformation agenda. By offering multiple options for delivery speed and locations, Ethio Telecom is ensuring accessibility for all segments of the population.

Ethiopian Airlines Faces Setbacks Due to Boeing Strike but Remains Optimistic About Growth

Addis Ababa, Ethiopia — Ethiopian Airlines CEO Mesfin Tasew has expressed concerns over the impact of Boeing’s recent seven-week machinist strike on the carrier’s growth ambitions. The production halt of the 737 MAX and 777 aircraft during the strike has delayed deliveries of key aircraft Ethiopian Airlines has on order, further complicating the airline’s fleet expansion plans. “Delivery dates of the airplanes that we have ordered from Boeing are still sleeping,” Tasew told AFP, highlighting the frustration caused by prolonged delays. Though the strike ended, Boeing faces challenges in resuming production, with estimates suggesting several weeks before operations fully normalize. Ethiopian Airlines had already experienced setbacks with earlier deliveries of the 737 MAX and 777F models. To mitigate the impact, the airline has resorted to leasing 737 MAX aircraft, with four set to join the fleet this month to meet immediate capacity needs. Despite these hurdles, Ethiopian has maintained its confidence in Boeing, placing significant orders during the Dubai Air Show in November 2023. These include 20 737 MAX 8s, 11 787-9 Dreamliners, and options for additional aircraft. While Boeing struggles, Airbus has proven a reliable partner for Ethiopian Airlines. The European manufacturer recently delivered the first of four A350-1000s, making Ethiopian the first African airline to operate this advanced aircraft. The remaining A350-1000s are expected to arrive by March 2025, bolstering the airline’s fleet and capacity. Ethiopian Airlines has faced a challenging year with geopolitical conflicts in Israel, the Middle East, and Sudan affecting operations. Despite these difficulties and fleet growth delays, the airline remains on track to meet its end-of-year financial targets. In FY2024, Ethiopian Airlines generated over $7 billion in revenue, marking a 14% year-on-year increase. The carrier also expanded its network, operating over 20 domestic routes and 140 international destinations, maintaining its position as Africa’s only profitable airline. The relationship between Ethiopian Airlines and Boeing has weathered turbulence, including the tragic Flight 302 crash in 2019. While Tasew acknowledges the crash as a “serious scar” in the airline’s history, he reaffirmed trust in Boeing, praising the company as “a great aerospace company.” Since resuming 737 MAX flights in February 2022, Ethiopian has built a fleet of 17 737 MAX 8s and continues to expand its orderbook with Boeing.

Ethiopian Airlines Set to Welcome Second Airbus A350-1000 in December

Ethiopian Airlines’ New Airbus A350-1000 Soars Across Continents: A Landmark in African Aviation On November 5, 2024, Ethiopian Airlines marked a historic milestone by welcoming its first Airbus A350-1000 into its fleet, making it the first African carrier to operate this advanced aircraft. This new addition is not just an achievement for the airline but also a significant step in Ethiopian’s ambitious Vision 2035 strategy, aimed at expanding its fleet, destinations, passenger numbers, and revenue. The A350-1000, named “Ethiopia Land of Origins” and registered as ET-BAW, has already begun making its mark with flights across Africa, Europe, and the Middle East. The inaugural flight for ET-BAW took place on November 7, 2024, from Addis Ababa to Lagos, Nigeria. After receiving a grand water cannon salute upon arrival at Lagos’ Murtala Mohammed International Airport, the aircraft’s onboard experience received high praise from passengers. Following its return to Addis Ababa, ET-BAW continued its travels, heading to Dubai, Accra, and Paris, demonstrating its versatility across key routes. On November 10, it added Tanzania’s Kilimanjaro and Zanzibar to its destinations, marking Dubai as its first intercontinental stop. Ethiopian Airlines has big plans for its new A350-1000 fleet. According to CEO Ato Mesfin Tasew, ET-BAW is currently dedicated to promotional flights, with plans to deploy it on long-haul routes once the second A350-1000 arrives in December. High-profile routes, such as Washington-Dulles, are next in line to benefit from this new fleet, signaling the airline’s commitment to enhancing passenger comfort and expanding intercontinental connections. Ethiopian Airlines has consistently set the pace for African aviation. As Africa’s largest airline by fleet size and destinations, Ethiopian has pioneered significant achievements, including being the first African airline to operate the Boeing 787 and now the A350-1000. In July 2022, the airline ordered four A350-1000s, with the remaining three expected to arrive by early 2025. Tasew emphasized the airline’s pride in adopting the A350-1000, highlighting its state-of-the-art technology, superior fuel efficiency, and minimal environmental impact. “We are thrilled to welcome the Airbus A350-1000 to our fleet, solidifying our position as leaders in aviation technology. This aircraft embodies cutting-edge advancements, offering superior passenger comfort, enhanced fuel efficiency, and reduced environmental impact. Together, we are pioneering a sustainable future for aviation in Africa,” said Tasew. The A350-1000 is designed with passenger experience at its core. Equipped with 46 business class seats with direct aisle access and 349 economy seats, the aircraft provides comfort across all classes. Its Rolls-Royce Trent XWB-97 engines enhance fuel efficiency, and passengers can enjoy the Thales AVANT Up inflight entertainment system, ensuring a premium journey experience. Since receiving its first A350-900 in 2016, Ethiopian Airlines has steadily grown its A350 fleet, which now includes 21 aircraft with 14 more on the way. The smaller A350-900 variant, seating 30 business and 313 economy passengers, serves a range of destinations, from London and Frankfurt to Johannesburg and Toronto, underscoring the airline’s extensive international reach. With its A350-1000 fleet, Ethiopian Airlines is well-positioned to lead Africa into a new era of aviation. As the airline connects more cities across continents, it continues to elevate the continent’s global presence in aviation. The arrival of the A350-1000 is more than a fleet expansion; it’s a testament to Ethiopian Airlines’ dedication to innovation, sustainability, and exceptional service.

Ethio Telecom and MwareTV Launch IGADO+: A New Affordable, Localized Streaming Service in Ethiopia

MwareTV, a Dutch provider of cloud-based TV platforms, has introduced IGADO+, a new video streaming service specifically developed for the Ethiopian market. In collaboration with Ethio Telecom, the country’s primary telecommunications provider, IGADO+ aims to make diverse streaming options widely accessible. The service, available over both broadband and mobile networks, provides Ethiopian audiences with a range of content tailored to local interests and languages. IGADO+ launched with an extensive selection of 125 live channels and thousands of hours of video-on-demand (VoD). The platform includes a wide variety of programming, such as entertainment, children’s shows, educational content, religious broadcasts, and sports coverage, including international match days featuring teams like Arsenal and Real Madrid, as well as local sports channels. In line with its aim to cater to the Ethiopian population, much of the content on IGADO+ is dubbed in Amharic and Afaan Oromoo, Ethiopia’s most widely spoken languages. The service offers subscription rates starting at 199 Birr per month (approximately USD $1.65), aiming to meet local expectations for affordable access. Ethio Telecom has partnered with IGADO+ to offer the service across portable devices, with plans to expand availability to smart TVs in the near future. The collaboration enables users to access IGADO+ through Ethio Telecom’s mobile and broadband networks and allows customers to subscribe conveniently via Ethio Telecom’s USSD portal. Ethio Telecom is actively promoting IGADO+ as a value-added service for its subscribers. IGADO+ operates on MwareTV’s TV Management System (TVMS), a cloud-based platform that automates streaming operations. The system includes tools for scheduling and managing content with a drag-and-drop interface, making it easier for operators to manage the service. The TVMS is also integrated with Ethio Telecom’s subscription management system, streamlining the process for subscribers. To enhance the user experience, MwareTV has developed a set of customizable, white-label user interfaces that can be branded for different devices without the need for additional coding. This allows IGADO+ to provide a consistent and intuitive experience across smartphones and tablets, with support for common devices and accessibility features for Ethiopian audiences. In a statement, Ibrahim Gado, General Manager of IGADO+, highlighted the service’s goals of accessibility and affordability. “Our goal is to make information and entertainment accessible to everyone in Ethiopia,” Gado said. He noted that the infrastructure provided by MwareTV allows IGADO+ to deliver a high-quality streaming service at a price point aligned with the local market. Sander Kerstens, CEO of MwareTV, described the advantages of the cloud-based approach, which reduces technical challenges and allows operators like IGADO+ to focus on content delivery. “What makes the MwareTV proposition so compelling is that it takes away all the technical concerns, hosting them in the cloud, so the operator can focus on delivering a great service,” Kerstens said. He added that the platform’s integration with Ethio Telecom’s systems supports an efficient subscription process and aims to build audience loyalty through accessible and localized content. With IGADO+ now available in Ethiopia, the platform aims to meet local demand for accessible and affordable streaming options. Its emphasis on Ethiopian languages, diverse programming, and competitive pricing positions it as a new entrant in the country’s digital media landscape. The collaboration between MwareTV and Ethio Telecom highlights the role of cloud technology in delivering localized content, and IGADO+ is expected to expand its reach further as additional devices are supported.

Ethiopia Aims for Cashless Economy with Interoperable QR Code Payment System

Ethiopia’s New Interoperable QR Code Standard Sets the Stage for a Digital Payment Revolution Ethiopia is taking a significant step in digital finance with the rollout of an interoperable QR code payment standard, promising to unify the country’s fragmented payment ecosystem and deliver seamless, accessible, and secure transactions. Spearheaded by EthSwitch, Ethiopia’s national payment switch, the initiative aligns with the EMVCo standard, a global framework for secure payment transactions, enabling both domestic and international payment schemes to work within one streamlined system. This could not only redefine digital transactions in Ethiopia but also set a precedent for other emerging markets looking to bridge the gap between cash-based and digital economies. The interoperable QR code standard aims to revolutionize how Ethiopians pay for everything—from groceries and utility bills to e-commerce purchases—by simplifying the payment process and eliminating the need for multiple, non-compatible QR systems. With a focus on peer-to-merchant (P2M) payments, the standard’s core objectives are clear: increase digital payment adoption, reduce transaction costs, and create a unified experience across different payment providers and merchant types. Currently, Ethiopia’s QR code payment ecosystem suffers from a lack of interoperability, limiting merchants and consumers to specific, closed-loop systems like TeleBirr’s QR code, which can only be used within its own app. This limitation not only stifles consumer convenience but also hinders market growth and keeps merchants tied to singular platforms. The new interoperable standard promises to break down these barriers, paving the way for a more inclusive and scalable digital economy. The document outlines a user-friendly transaction flow: consumers scan the QR code, enter the payment amount (for static QR codes), and send a transaction request through their bank’s mobile app. The network verifies the merchant’s information and facilitates a secure transfer of funds. For dynamic QR codes, the process is even more streamlined, with all transaction details pre-filled at the point of sale. One of the standout features of the standard is its multi-scheme template, allowing QR codes to support multiple payment schemes simultaneously. This development means that a merchant can accept payments from any compatible domestic or international payment network—creating a more open and expansive market. Merchants who may have previously displayed multiple QR codes from different providers can now rely on a single code that does it all, reducing clutter and simplifying the consumer experience. Acquirers, responsible for onboarding merchants, will be required to replace existing QR codes with these interoperable ones, and issuers will update their mobile apps to scan and process the new format. EthSwitch, as the scheme’s operator, will enforce compliance and provide technical guidance to ensure smooth transitions. In Ethiopia’s current landscape, closed-loop systems like TeleBirr’s QR codes present significant challenges, from limited acceptance to interoperability issues. With the new interoperable standard, QR codes in Ethiopia are set to become open-loop, enabling transactions across various platforms and financial institutions. This shift not only expands merchant access to a broader customer base but also alleviates consumers from needing multiple payment apps for different services. By adopting an open-loop standard, the Ethiopian digital payment market can foster healthier competition and make digital transactions universally accessible. EthSwitch will play a critical role in regulating and monitoring this QR code standard. By assigning unique Merchant Account Information (MAI) identifiers, EthSwitch will ensure each merchant and payment provider operates securely within the interoperable framework. Additionally, the organization will provide ongoing support and resources for compliance, fraud prevention, and dispute resolution. Ethiopia’s National Bank will also support this initiative by issuing Bank Identification Codes (BICs) for institutions adopting the standard. This coordinated regulatory approach will ensure that both domestic and international transactions are secure, transparent, and resilient to fraud. With digital payment adoption on the rise, this interoperable QR code standard is a decisive move toward a cashless Ethiopian economy. By bringing smaller businesses into the digital payments fold, the initiative supports financial inclusion and aligns with Ethiopia’s broader goals for economic modernization. As QR code payment systems gain traction globally, Ethiopia’s model could serve as a blueprint for other developing economies. The interoperable QR standard represents not just a technological upgrade, but a vision for an interconnected, cashless society—one where all Ethiopians can benefit from the convenience, security, and inclusivity of digital finance.

Oromia launches corruption investigation into Kenticha Mining execs

Lithium rush ends behind bars for Alfoz Plaza proprietor Investigators and prosecutors under the Oromia Attorney General’s Bureau have launched a major corruption probe into the managers of Kenticha Mining Plc and African Mining and Energy Plc (AME) over suspicions of embezzlement and fraud involving a large-scale mining venture in Guji Zone. Ali Hussein, general manager of Kenticha Mining (KMP) and a major AME shareholder, was taken into police custody on October 19, 2024. He is being held at a detention center in Burayu, according to The Reporter’s sources. Sammy Million, KMP deputy general manager, has also been detained, according to these sources. Ali is the proprietor of Alfoz Plaza, a large commercial property in Addis Ababa’s Gerji neighborhood, and is a major shareholder in Oromia Bank and the Bank of Abyssinia. He is reportedly also involved in international trade, including the coffee export business. Prosecutors at the Oromia Attorney General’s Bureau are looking into possible fraud in Kenticha Mining’s licensing process amid allegations the company acquired concessions for lithium and tantalum extraction without fulfilling qualification requirements or undergoing the necessary due diligence. The investigation also includes a probe into allegations of embezzlement involving USD 38 million the managers received from foreign investors, according to a source close to the matter. KMP, a joint venture between the Oromia Mining Share Company (OMSC) and Abyssinian Metals Limited (AML), first gained a concession to mine in southern Oromia in December 2021. AML is itself a subsidiary of AME, which has more than 185 shareholders from the US, UK, and Australia, among others. Sources told The Reporter the funds received from these shareholders and investors were never injected into the mining venture. KMP’s managers also failed to settle the terms of their contract with Oromia Mining SC, which is owned by the Oromia regional administration through the Tumsa Development Group. The latter owns 49 percent of the Kenticha Mining joint venture, while AME owns the remaining 51 percent, according to an agreement signed in June 2021. “Taking into consideration the possession rights for mining resources in Oromia by Oromia Mining SC on behalf of the regional government of Oromia, and the goodwill of Oromia Mining SC in Oromia, from the USD 38.1 million to be availed by AME, 49 percent will be registered as the capital of Oromia Mining SC,” reads the agreement. Nonetheless, sources say AME failed to transfer the funds to Oromia Mining’s accounts. Instead, AME’s managers allegedly misused the funds they raised from foreign investors as well as resources they mobilized from other sources in the name of Kenticha Mining. This includes investors in Addis Ababa, who were allegedly promised returns when KMP began exporting lithium, according to sources close to the case. October’s arrests are the culmination of a three-year saga of controversy that has involved the Ministry of Mines and the Oromia regional government. KMP has been mired with hiccups from its inception. The underlying issues emanate from the lack of experience, technical capacity and financial resources to take on such a large venture. In December 2022, Shimelis Abdissa, Oromia regional president and chairperson of Oromia Mining SC, laid out three objectives for the managers of AME, according to a letter. These included depositing USD 30 million into an account at Siinqee Bank, commencing mining activities, and opening an office near the Kenticha mining site in Shakiso, Guji Zone, according to a letter. However, AME was unable to fulfill these terms. The issues led the Oromia regional administration and OMSC to move to terminate the partnership with AME in October 2023, claiming the latter had failed to fulfill financial obligations and meet project progress expectations. In May this year, the Ministry of Mines wrote a ‘Notice of License Surrender’ to KMP, instructing the firm it had five days to surrender its lithium and tantalum mining project. However, in a bizarre turn of events, that notice was accompanied by another (also from the Ministry) on the same day, granting KMP permission to enter into exploration activities for the same minerals in the same place. The foreign investors holding stakes in AME and Abyssinia Metals have also initiated a lawsuit against KMP and its managers in a bid to get their money back. In the midst of all these developments, the managers of KMP accused officials at the Ministry of Mines and in the Oromia regional administration of ‘illegally’ revoking the company’s license. In turn, the Ministry and administration launched the legal probe into the beleaguered mining venture.