Ethiopian Investment Holdings (EIH) has inked a Memorandum of Understanding with Russia’s UC RUSAL to develop a 500,000 metric ton aluminium smelter in Ethiopia. The project, the first major RUSAL investment in Africa, is expected to take four years and cost around one billion dollars for its initial phase. The smelter plans to meet rising domestic demand, cut foreign currency spent on imports, and position Ethiopia as a competitive regional and global aluminium supplier. A joint technical committee has already begun site selection and feasibility studies. UC RUSAL brings expertise in low-carbon aluminium production, with over 90pc of output powered by renewable hydroelectricity. With operations in 19 countries, its integrated production chain spans bauxite mining to high-value aluminium products. The project is projected to sustain industrial value in Ethiopia for up to 50 years, attracting long-term foreign investment and supporting the country’s industrialisation agenda.

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