Ethiopia has launched its first gold refinery in a $50 million joint venture aimed at expanding domestic mineral processing and positioning the East African country as a regional hub for precious metals.
Prime Minister Abiy Ahmed announced the launch over the weekend, saying the facility would process gold from Ethiopia and other countries, allowing neighbouring states and regional mining companies to refine, certify and sell their gold within Africa rather than sending it overseas.
The National Precious Metals Refinery is located at the Bole Lemi Special Economic Zone. It was established through a partnership between state-owned Ethiopian Investment Holdings and Sam Precious Metals, with the government holding a majority stake, according to Abiy.
The facility will provide services including melting, testing, refining, casting, gold-bar minting and die-making. Ethiopian authorities said it has the capacity to process more than 600 tonnes of precious metals annually at full capacity, supporting gold and silver production as well as the jewellery industry.
The investment comes as gold has become one of Ethiopia’s most important sources of foreign exchange. Government data cited by Reuters showed that gold exports generated $5.6 billion last year, strengthening the metal’s position as a major contributor to the country’s export earnings.
By processing more of its gold domestically, Ethiopia aims to retain a greater share of the value generated from its mineral resources. Refining, certification and the production of finished bullion can allow producing countries to capture additional economic activity beyond extracting and exporting raw materials.
The government also hopes the facility will attract gold from neighbouring countries, creating a market for refining services and strengthening Ethiopia’s role in regional precious-metals trade. Officials said the project would improve quality assurance and transparency in gold valuation while supporting industrial development and skilled employment.
The refinery forms part of Ethiopia’s broader effort to diversify its economy, expand manufacturing and increase the domestic value of its natural resources. The government has identified mining as a priority sector as it seeks to strengthen export performance and reduce reliance on imported finished products.
However, the refinery’s longer-term contribution will depend on its ability to attract sufficient gold supplies, meet international standards and establish reliable access to regional and global markets.
The launch marks a step in Ethiopia’s attempt to move further up the mineral value chain, transforming its gold resources into higher-value products and potentially generating additional foreign-exchange earnings.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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