This development is more than a procedural milestone, it unlocks a key financing mechanism that will enable the project to proceed toward full launch. 

AFC’s involvement, in partnership with the Eastern and Southern African Trade and Development Bank (TDB), forms the core of the financing syndicate assembled to fund Tulu Kapi’s development. AFC is one of Africa’s leading multilateral development finance institutions, with a mandate to accelerate private sector-led infrastructure and natural resource projects across the continent. Its decision to partner with KEFI is a strong endorsement of the Tulu Kapi project’s strategic importance and viability.

However, before AFC could formally enter the financing agreement, its membership in Ethiopia needed to be ratified by the national parliament, a condition precedent that has now been fulfilled. This ratification allows AFC to legally invest in the country and confirms the Ethiopian government’s support for the institution’s participation in key national projects. The relationship between KEFI and AFC represents a key alignment of commercial ambition and development finance expertise. 

With AFC now cleared to act, KEFI is in a position to finalize the full funding package for the Tulu Kapi Gold Project. The combined financing effort, led by AFC and TDB, will provide the capital needed to transition the project from planning to production. It is estimated that Tulu Kapi will become Ethiopia’s first largescale modern gold mine, producing approximately 140,000oz of gold per year at full capacity. KEFI maintains that a collaborative approach involving government, local stakeholders, and regional financiers is essential for project success in Ethiopia. The involvement of AFC brings both strong funding support and trusted backing to the project. It also de-risks the project from the perspective of other syndicate members and institutional investors, demonstrating that African capital markets are ready to support responsible and scalable mining operations.

Beyond the immediate impact on construction and operations, AFC’s participation supports KEFI’s broader strategy to generate sustainable cash flows. These will be used not only for debt servicing but also for future exploration programmes and potential shareholder dividends. The deal structure allows KEFI to maintain control of the project while distributing financial exposure across a network of development-focused institutions. This ratification also illustrates the Ethiopian government’s broader commitment to supporting foreign investment in the mining sector. By enabling AFC to operate in the country, the government has signaled its willingness to back resource projects that align with national development goals, such as job creation, infrastructure improvement, and foreign exchange earnings.

In sum, the ratification of AFC’s membership and its resulting partnership with KEFI highlights the power of strategic collaboration in driving complex resource projects forward. This alliance not only moves the Tulu Kapi Gold Project closer to financial close and construction but also demonstrates how shared commitment between government, financiers, and developers can unlock long-term value in one of Africa’s most promising gold regions.

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