Ethiopia has fully replaced imported coal previously used by cement, steel, ceramic and other factories with domestically produced supply, according to the Ministry of Mines.
The announcement was made during the inauguration of the Arjo Coal Processing Factory by Prime Minister Abiy Ahmed on Thursday. Speaking at the event, Minister of Mines Habtamu Tegegn said Ethiopia possesses commercially viable coal resources that can be exploited alongside other mineral deposits found across the country.
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For years, Ethiopia relied on imported washed coal to power energy-intensive industries, placing pressure on scarce foreign exchange reserves. The Ministry disclosed that up to Birr 300 million had been spent on coal imports over the past two years.
Officials attributed the successful import substitution to increased government focus on the mining sector and growing private-sector participation in establishing coal processing plants in coal-producing areas. The improved availability of domestic coal has helped cement factories avoid production disruptions and enhanced supply stability for the construction sector.
The Arjo Coal Processing Factory is reported to have a production capacity of up to 200 tons per hour and is said to meet international quality standards.
The Ministry further indicated that similar import-substitution efforts are underway in the ceramic and steel industries. Large-scale ceramic manufacturing projects are nearing completion, with production expected to commence within three months. Authorities say this will help ensure sustainable supply and more affordable pricing for housing and construction materials.
In addition, work is ongoing to develop domestic iron ore production as part of broader efforts to localize strategic industrial inputs and strengthen Ethiopia’s manufacturing base.
The move aligns with the government’s wider push to reduce foreign exchange dependency, support industrial self-sufficiency, and enhance the resilience of key supply chains.
