Hospitality, Mining Spearhead Investment Renaissance At MIDROC

MIDROC Investment Group is looking to secure financing in the hundreds of millions of dollars to back a series of high-profile projects in the hotel and mining industries as part of the conglomerate’s ambitions to kickstart investment in new lines of business following an extended period of dormancy.

CEO Jemal Ahmed and his team seek USD 116 million in funding for several hotel projects in the capital, and a further USD 200 million to back a commercial-scale gold mining venture in Metekel, Benishangul-Gumuz.

Jemal recently announced plans to build or renovate at least three hotels ahead of COP32, which will be taking place in Addis Ababa next year in what promises to be a major opportunity for the city’s hospitality industry.

Over 80,000 international delegates are expected to visit Addis Ababa for the summit, according to Mayor Adanech Abiebie.

MIDROC aims to capitalize on the opportunity by remodeling the Sheraton Addis hotel, and building an additional, separate hotel on the sizable property in Arat Kilo, according to its executives.

The conglomerate is also seeking to resume work on the Africa Union Westin Hotel Project, which has been delayed by several years.

This week, MIDROC acquired the storied Wabi Shebelle Hotel near the capital’s Mexico Square. Jemal and Beidemariam Makonnen, board secretary of Wabi Shebelle Hotel SC and a grandson of Emperor Haile Selassie, took part in the signing ceremony that finalized the takeover of one of Addis Ababa’s oldest hotels.

“We will work to upgrade the hotel’s services to the latest standards in the industry and make it a comfortable and high-quality place to stay for guests,” Jemal said during the event.

Beidemariam welcomed the agreement, saying MIDROC had committed to preserving the hotel’s historical significance and ensuring its legacy is passed on to future generations.

Solomon Zewdu, who is coordinating the project on behalf of MIDROC, told The Reporter that work on a comprehensive renovation is already underway. Once complete, Wabi Shebelle will be one of more than 350 hotels under Marriott International’s Autograph Collection worldwide.

Solomon confirmed that MIDROC is looking to finalize its AU Westin Hotel project ahead of COP32 as well.

MIDROC executives refrained from disclosing the estimated cost of the hotel projects.

However, the World Bank’s International Finance Corporation (IFC) is considering the provision of a USD 80 million loan to back the refurbishment of the Sheraton Addis and the development of a new Sheraton hotel, according to documents disclosed this week.

MIDROC executives told The Reporter that approval is pending, but said they will be moving ahead with their plans in the meantime.

The IFC board will decide on the loan during a meeting scheduled for February 28, 2026. If approved, the hotel venture will join Derba Cement on the list of IFC-backed MIDROC projects.

Hotels are not the only line of business the conglomerate’s executives are looking to breathe new life into.

Although MIDROC acquired a gold exploration license covering a 2,260 square kilometer site in Metekel two decades ago, the project has stalled despite the discovery of significant deposits in the area. MIDROC has also undertaken exploration works in Menta Wuha in the Amhara region, and Ulaulo Meleka and Kenticha in Oromia.

Documents obtained by The Reporter indicate that MIDROC is seeking upwards of USD 204 million in debt financing to cover costs for its venture in Metekel. If realized, the financing would place the project on par with MIDROC’s Legedembi mine.

The cause for the delay remains unclear, and some have posited that it is related to insecurity in the region. However, Nemera Maru, administrator of Bulen Woreda in Metekel Zone, told The Reporter that security is not an issue.

“There are no armed groups occupying MIDROC’s Metekel site. There are armed groups in nearby woredas, but because the military is in the area, they have no effect on the project,” said Nemera.

Still, he confirmed that progress has been stalled for years and said things are finally changing.

“They’re starting to build roads linking to the site. The company tells us it is also importing machinery,” Nemera told The Reporter

Sources say exploration and development works remain outstanding.

However, Dulla Mekonnen, deputy head of MIDROC’s mining cluster, says otherwise.

“We’ve already started work. There’s activity at the Metekel site,” he told The Reporter.

He disclosed that heavy machinery has been procured and is in transit, while a geotechnical investigation is underway ahead of the construction of a processing plant.

“Financing is almost secured. We plan to finalize the project by the end of 2027,” said Dulla, noting the Metekel site could hold up to 35 tons of gold.

With Jemal at the helm, MIDROC is weighing investment in pharma manufacturing, plastic recycling, healthcare, improved seed supply, and coal mining to add to its portfolio in agriculture, hospitality, real estate, mining, and retail.

MIDROC employs more than 72,000 people across its subsidiaries, which brought in more than USD 800 million in 2023/24.