Akobo, Oromia partner to develop services in support of Ethiopia’s mining industry

21st February 2022 By: Tasneem Bulbulia - Senior Contributing Editor Online

Scandinavia-based Ethiopian gold exploration and mining company Akobo Minerals has signed a memorandum of understanding (MoU) with Ethiopian commercial bank Oromia Bank.

Under the terms of the MoU, Akobo and Oromia will cooperate to develop domestic services related to financing new exploration and mining projects, in accordance with international standards.

Together, these services are expected to support the advancement of Ethiopia’s domestic mining industry.

Through their collaboration, Akobo and Oromia hope to become the leading industry mining partner offering operational and financial services, respectively, for new ventures and projects in Ethiopia.

This partnership aims to go beyond general corporate funding facilities, and will also encompass community funding opportunities and the rollout of services to rural areas that do not currently have access to modern financial technologies and services.

In the coming months, Akobo and Oromia will work together to put in place the aspects necessary to build a range of Ethiopian mining services, as set out in the MoU.

However, the commitment of the parties to fulfil the roles and responsibilities of the MoU does not constitute a legally binding agreement.

Separate to the domestic mining services MoU, Akobo is also in negotiations with Oromia to agree a corporate funding package.

This will be used to underpin a range of future activities including local community-based environment, social and governance initiatives, as well as capital requirements to support Akobo’s mining operations before the end of the year.