Ethiopia is set to expand its industrial base after Ethiopian Investment Holdings signed a Memorandum of Understanding with RUSAL, the Russia-based aluminium giant, to develop a large-scale smelter. The facility is expected to produce up to 500,000 metric tons annually, positioning the country as a potential supplier to both regional and global markets.

RUSAL, one of the world’s largest producers of low-carbon aluminium, operates a fully integrated portfolio covering bauxite mining, alumina refining, and aluminium production. Its operations span Russia, Europe, and Africa, with more than ninety percent of electricity consumption sourced from renewable hydropower. The company’s expertise in sustainable aluminium production, including inert anode technology and advanced recycling, is expected to underpin the technical design of Ethiopia’s planned smelter.

The project aims to reduce foreign currency outflows on aluminium imports and support the country’s broader industrialisation agenda. Development is projected to take three to four years, with the plant expected to operate for up to fifty years.

The first phase, valued at approximately 1 billion US dollars, is expected to draw close to seventy percent of financing from lenders already committed to the project. A joint technical committee has been established by EIH and RUSAL to manage preparatory work, including site selection and a comprehensive feasibility study covering energy, infrastructure, and operational requirements.