Ethiopia has inaugurated its first national precious metals refinery, a $50 million joint venture aimed at increasing domestic value addition, boosting export earnings and positioning the country as a regional hub for gold processing.
Prime Minister Abiy Ahmed announced the launch of the facility at the Bole Lemi Special Economic Zone, saying it would allow Ethiopia and neighbouring countries to refine, certify and process gold within the region rather than send it overseas.
The refinery was established through a partnership between state owned Ethiopian Investment Holdings and international investor Sam Precious Metals. The government holds a majority stake in the project, according to Abiy.
The facility has the capacity to process more than 600 tonnes of precious metals annually at full operation. Its services include melting, testing, refining, casting, gold bar minting and die making, according to the Ethiopian government.
Gold is one of Ethiopia’s major sources of foreign exchange. Government data cited by Reuters shows the country earned $5.6 billion from gold exports last year.
Abiy said the refinery would enable neighbouring countries and regional mining companies to access refining, certification and value addition services in Ethiopia, potentially reducing the need to send gold outside Africa for processing.
The project is also intended to strengthen the domestic mining industry, support jewellery manufacturing, create skilled jobs and improve transparency in gold valuation and trading.
The refinery forms part of Ethiopia’s broader effort to expand industrial capacity and capture more economic value from its natural resources. Rather than relying primarily on mineral extraction and exports, the government wants to develop processing and manufacturing activities that can generate additional revenue and employment.
Its regional ambitions will depend on attracting sufficient gold supplies from domestic producers and neighbouring countries, meeting international quality standards and building confidence among buyers and investors.
The refinery’s launch marks a step towards expanding Ethiopia’s role in Africa’s precious metals industry. Its longer term contribution will depend on operating capacity, access to markets and the ability to turn increased processing into sustainable export earnings and domestic economic benefits.
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