Ethiopia: Council of Ministers Refers External Loan Agreements to Parliament, Authorizes Mining License Deals

Addis Abeba — The Prime Minister's Office said the Council of Ministers has referred three external financing agreements to the House of Peoples' Representatives for approval and authorized the Ministry of Mines to sign gold and iron ore production license agreements, following deliberations during its 53rd regular session held on 2 March, 2026.

In a statement issued after the meeting, the Office said the Council reviewed financial support agreements linked to energy and social protection programs and determined that they are consistent with the country's debt management policy before deciding to submit the draft proclamations to parliament for legislative consideration.

According to the statement, one of the agreements concerns the National Electricity Power Expansion Project, to be financed through a loan of USD 60,223,000 from the Korea Export-Import Bank. The loan is interest free and includes a 0.1% service fee to cover administrative costs. It will be repaid over 40 years, including a 15-year grace period.

The second agreement relates to the Renewable, Integrated, Sustainable Energy and Digitalization Project. The project will be supported by an 80 million euro loan from the French Development Agency. The financing carries a 1.2% interest rate and a 0.5% service fee, with a repayment period of 20 years, including a seven-year grace period.

The third financing agreement covers the Urban Productive Safety Net and Job Creation Program. It involves a loan of 184,100,000 Special Drawing Rights (SDR) from the International Development Association. The loan is interest free and includes a 1.25% service fee on both disbursed and undisbursed amounts. It is to be repaid over 30 years, with a six-year grace period.

The statement said the draft proclamations tied to the three agreements were unanimously referred to the House of Peoples' Representatives for further legislative review.

In the same session, the Council also discussed draft agreements for gold and iron ore production licenses, presented as part of efforts aimed at increasing foreign exchange earnings, creating employment opportunities, and supporting broader economic growth. According to the statement, the proposed mining projects are expected to align with government policy on environmental protection and community benefits.

The Council unanimously authorized the Ministry of Mines to sign the gold and iron ore production license agreements and proceed with the commencement of operations.

Read the original article on Addis Standard.