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While it’s not unusual to see Australian ASX-listed resources companies moving into African jurisdictions, one of the lesser common is Ethiopia. After a general election in June 2026 which re-installed Prime Minister Abiy Ahmed for a second term, the country’s overall government has continued on its mission to attract Foreign Direct Investment (FDI) to the country.
Ethiopia is a jurisdiction worth keeping eyes on: a little-known fact is that Ethiopia is home to Africa’s largest sovereign wealth fund, Ethiopian Investment Holdings (EIH).
EIH is one of the major entities being utilised by the Ahmed government – of the pro-business Prosperity Party, formed in 2019 from a coalition of historical parties – to establish and advance Ethiopia’s strategic monetary focus in welcoming FDI, as well as locking in value from projects based within its own borders.
EIH recently made a US$3 million investment into gold miner Akobo Minerals, which is listed on European markets and operates inside Ethiopia. That move was made just back in December of 2025.
Pro-business party, pro-business policies
That strategy puts it on par with Norway’s wealth fund which is well known for redirecting oil production profits back into strategic investments that ultimately shore up the sovereign security of the country’s overall treasury and wealth.
But it’s not just the investment into Akobo that is worth noting. Over the last few years, and quietly as far as the Western media is concerned, Ethiopia has been re-shaping its resources regulatory landscapes and processes, with emphasis on things like streamlining permits, with a reported uptick in exploration activity in the country defining 2026.
But like most countries, Ethiopia is not solely run by a Federal government – there are state-level and hyperlocal institutions and regulators which also oversee activities within the country. At this time, several large-scale projects are advancing through the Ethiopian regulatory ecosystem, and where large companies go and succeed, smaller companies with a high risk tolerance follow.
That includes some exploration companies on the ASX.
Importance of relationship building
It is likely not a startling revelation to anybody that within the context of Africa, still largely perceived as a basket of developing countries, it is important for any mining company to establish productive relationships with overhead government authorities.
That is especially true for foreign-owned companies coming into the country, delivering the same FDI the recently re-elected pro-business Prosperity Party are seeking.
And the nature of those relationships is multi-tiered. Because Ethiopia’s Ministry of Mines is not the be-all-and-end-all of Ethiopian mining regulators, any company in the region is required to navigate permitting and approvals at the local and state levels.
For a real-world example of an attractively priced ASX-listed exploration company currently doing just that in modern Ethiopia, look no further than Askari Metals (ASX:AS2).
Case study: Askari Metals (ASX:AS2)
Askari Metals (ASX:AS2) currently has two major projects it’s developing in Ethiopia.
Its Nejo project is a copper-gold play – neither copper nor gold need any introduction as obvious beneficiaries of a still-ongoing commodities supercycle – while the company’s separate pureplay gold Adola Greenstone Belt Project remains another asset in the company’s portfolio.
Currently, the company is focusing on acquiring the permits and regulatory approvals needed to move ahead with drilling on both projects.
This is where the importance of relationship building with local authorities comes into play.
Exploring the regulatory landscape
While the Ethiopian Minister for the Ministry of Mines, Habtamu Tegegne, was recently re-installed in that role after the June 2026 general election, the wider Ethiopian government landscape has been subject to a number of high-level personnel changes in the last few months.
That includes at the local levels in the state-level jurisdiction where Askari finds itself, as well as the country’s larger House of Representatives, a key decision making body in the Federal Democratic Republic of Ethiopia.
“As with any project in Ethiopia, community engagement and local stakeholder consultation form an important part of the process,” Askari Metals Founder and Executive Director Gino D’Anna told HotCopper.
“While Hon. Habtamu remains in place as the Federal Minister of Mines, there are also changes occurring at other levels of government-related organisations.
Regulatory reform in Ethiopia
“The first is at the Oromia Regional Government and [Oromia Mineral Development Authority (OMDA)] level,” D’Anna added, referencing the area within which the company’s main activities are currently located. Regional governments – or ‘state-level’ – have been pushing for greater independence from the Federal government when it comes to mining leases in recent times.
D’Anna also spoke of the country’s community governments, which effectively award self-determination for Ethiopia’s vast array of different ethnic groups.
“The second is at the local community level,” D’Anna said.
“Alignment across all three levels of government and related organisations remains important … [Askari’s] key operational and stakeholder engagement frameworks are being established to support future activity across both projects.”
An update on on-site works
With Askari demonstrating a clear desire to engage with local authorities across different levels of government in the region – including a focus on local employment, meetings with community leaders, and dialogue around infrastructure and services needs – works at the Nejo and Adola Greenstone Belt projects respectively continue to advance, D’Anna confirmed to HotCopper.
“The key building blocks are largely in place … access, accommodation, workforce planning, supply chains and field logistics are all being considered as part of that process to minimise delays and support effective execution on the ground.
“From an operational perspective … drilling capacity, contractor availability and logistics are all being coordinated to support future exploration activities.”
In a sign of these auspicious times of mid-2026, likely of ultimate interest to risk-tolerant investors is Askari’s potential exposure to economic deposits of copper at Nejo, moreso than gold.
Copper is up over +45% over the last twelve months, outstripping gold’s 12mth returns, also underscoring why the Big Aussie BHP’s strategic copper pivot has underpinned its recent generational run of fresh all-time-high valuations.
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