Ethiopia has been ranked as the least attractive country for mining investment in the world, according to the “2024 Annual Mining Companies Survey” released on July 29, 2025, by the Canada-based Fraser Institute. The comprehensive report, which evaluated 82 jurisdictions globally, placed Ethiopia at the very bottom in terms of mineral exploration and investment appeal, highlighting critical challenges related to policy stability and transparency.
The Fraser Institute’s ranking is based primarily on the Investment Attractiveness Index, a composite score that combines geological potential with government policy frameworks. While Ethiopia is rich in mineral resources, the survey reveals that its poor policy environment overshadows its natural wealth, deterring investors. Ethiopia ranked below Suriname and Niger, the two countries just above it, while Finland, Nevada, and Alaska ranked as the most attractive destinations for mining investments. Notably, Finland climbed from 17th to first place in 2023, underscoring the impact of improving policies.
The survey also includes a Policy Perception Index (PPI), described as a “report card for governments,” which assesses factors such as taxation, environmental regulations, legal systems, and political stability — all key influences on mining companies’ investment decisions. Ethiopia was among the bottom 10 countries in this category, reflecting low scores for policy clarity and stability. Other countries with poor policy outlooks include Bolivia, Madagascar, Russia, and Mozambique, suggesting that the dominant deterrent for mining companies in Ethiopia is an unfavorable policy climate rather than lack of mineral resources.
Respondents to the survey emphasized that while mineral endowments are fundamental, roughly 40% of their investment decisions hinge on the policy environment. This underscores the importance of transparent regulations, political stability, and fair legal frameworks in attracting exploration investment.
The survey, conducted annually since 1997, gathered data from 350 responses out of 2,289 mining companies worldwide engaged in exploration and related activities. Its findings are widely regarded as influential tools for governments seeking to improve their investment climates.
Despite Ethiopia’s wealth of natural resources, the report warns that without addressing crucial policy gaps, exploration investments will likely be diverted to countries with clearer and more investor-friendly frameworks. The Fraser Institute stresses that mineral riches alone do not guarantee investment unless accompanied by strong governance and regulatory environments.
The report’s insights have particular relevance for African nations. For example, Botswana, Africa’s highest-ranking country in the survey, slipped from 15th to 20th place overall, with a significant drop in its policy perception score. Concerns about regulatory duplication, security issues, and legal uncertainties have dented investor confidence even in this traditionally well-regarded mining jurisdiction. This development serves as a cautionary example that maintaining a positive policy reputation demands continuous effort.
