Ethiopia is a stable, progressive, fast-growing and investment-friendly jurisdiction. Ethiopia has one of the largest populations and highest GDP growth rates in Africa and enjoys major multilateral support as well as being the seat of the African Union. In particular, Ethiopia has established itself as a favourable destination for inbound foreign investment from major countries around the world.
The government of Ethiopia is fully committed to developing its natural resources and mining industry, viewing it as in the national interest to foster and encourage private investment in the country. The government is particularly committed to supporting the country’s emerging potash industry, which could see the development of multiple producers in the Danakil Basin, with Circum being the largest.
Government support to date has included the construction of the major supply access road to the basin from the city of Mekelle and a new road between Ahmed Ela and Afdera which is under construction. The government is also investing significantly in the electrification of the Danakil region. Ethiopia has a surplus of electrical power, exporting to neighbouring countries such as Kenya, Djibouti and Sudan.
The government of Djibouti completed the development of a new bulk terminal port at Tadjoura in June 2017. This facility will provide access to key markets worldwide. The Djibouti Port Authority has made provision for the storage and export of potash from the Danakil Basin.
In July 2018, Ethiopian and Eritrean delegations signed a Joint Declaration of Peace and Friendship. As the relationship between the two countries improves, there is potential to open more direct import/export channels for Circum.