Addis Ababa— Ethiopia has launched its first gold refinery, a $50 million joint venture designed to increase domestic value addition and position the East African nation as a regional hub for precious metals processing.
Prime Minister Abiy Ahmed announced the launch over the weekend, describing the facility as an opportunity for Ethiopia and neighbouring countries to refine and certify gold within Africa rather than sending it overseas for processing.
Gold is one of Ethiopia’s leading sources of foreign exchange. Government data shows the country earned $5.6 billion from gold exports last year, highlighting the metal’s importance to its economy and international trade.
The new refinery is expected to process gold sourced from Ethiopia and other countries in the region, potentially expanding the country's role in the precious metals value chain.
In a post on X on Saturday, Abiy said the facility would allow neighbouring countries and regional mining companies to bring their gold to Ethiopia for advanced refining, certification, value addition and sale.
The initiative is intended to reduce the need to export gold outside Africa for processing, creating opportunities for regional mining businesses to access refining services closer to their operations.
The refinery will offer a range of services, including gold melting, testing, refining, casting, bar minting and die-making.
The initial investment stands at $50 million, with state-owned Ethiopian Investment Holdings holding a majority stake in the joint venture, according to Abiy.
The launch represents a step towards expanding Ethiopia’s industrial capacity beyond mineral extraction and into higher-value processing activities.
However, the refinery’s long-term economic impact will depend on its ability to attract sufficient gold supplies from domestic and regional producers, compete with established international refining centres and establish confidence in its certification standards.
The Bigger Picture
Ethiopia's first gold refinery highlights the growing importance of domestic processing in Africa's mineral development strategy. If the facility attracts sufficient domestic and regional business, it could strengthen Ethiopia's position in the precious metals market while creating opportunities to retain more economic value within Africa.
For the continent's mining industry, the wider challenge remains turning mineral wealth into sustainable industrial development, stronger trade links and more diversified sources of economic growth.
Source: Reuters
Reporting: Dawit Endeshaw
Editing: Georg Obulutsa& Kirsten Donovan
