The refinery was inaugurated on October 10, 2026, in the Bole Lemi Economic Zone. The project was developed in collaboration between the state-owned Ethiopian Investment Holdings (EIH) and the international investor Sam Precious Metals. According to an official statement from the Ethiopian Prime Minister’s Office, the facility is expected to refine over 600 tons of precious metals annually. The facility will test the purity of incoming material, refine precious metals, and produce gold and silver bars.
New Gold Refinery in Ethiopia
The figure of 600 metric tons refers to the declared precious metals processing capacity, not annual gold production. This is a significant distinction, especially when considering the scale of domestic mining. According to data from the U.S. Geological Survey (USGS), Ethiopia mined only about 3.5 tons of gold in 2024. The new refinery will therefore have to rely largely on raw materials sourced from outside the country’s mines if its capacity is to be utilized on a large scale.
Gold is expected to help Ethiopia earn foreign currency
Ethiopia has been trying for years to increase the economic benefits derived from its mineral resources. The country has identified gold deposits in, among other places, geological belts in the south and west, as well as in the Gambella and Benishangul-Gumuz regions. However, not all of these deposits are ready for commercial mining. There is no basis for treating the entirety of potential resources as confirmed, economically viable reserves.
Foreign exchange market reforms have also become an important element of the government’s strategy. Following changes initiated in July 2024, the National Bank of Ethiopia introduced mechanisms designed to encourage gold suppliers to sell the raw material through legal channels. Gold has become one of Ethiopia’s key sources of foreign currency, and the government expects increased legal trading to support the wider economy.
Addis Ababa Wants to Retain a Larger Share of Gold’s Value
The investment reflects a broader trend across Africa – processing raw materials locally to capture more value before export. Instead of selling gold at an earlier stage in the supply chain, Ethiopia aims to export refined gold while simultaneously developing local industrial capabilities.
Ethiopia is not the only country attempting to transform the sector’s operating model. Ghana is expanding domestic refining, and the state-owned Ghana Gold Board has agreed to supply the Gold Coast refinery with up to one metric ton of gold per week. Details published by the Ghana Gold Board show that this involves not only the processing of raw materials but also the state’s share of profits from subsequent stages of production.
Ethiopia aims to follow a similar model. On-site refining could reduce the costs of certain foreign services, create jobs, and improve control over the quality of the bullion. However, success will depend on access to sufficient quantities of gold, competitive energy and transportation costs, and the ability to earn the trust of international buyers.
Will the investment pay off?
Simply launching the refinery does not guarantee success. If the facility operates below capacity, costs could erode its profitability. However, if Ethiopia succeeds in attracting regional suppliers and ensuring compliance with recognized standards for gold quality and traceability, it could establish itself as a regional hub for precious metals processing.
The new refinery gives Addis Ababa a tool to achieve this goal. Only data on actual processing volumes, the origin of the raw material, and revenue will reveal whether the $50 million investment will change more than just the country’s industrial capabilities.
