Ethiopia has launched its first gold refinery, a $50 million joint venture designed to strengthen domestic mineral processing, increase export earnings and position the East African country as a regional hub for precious metals. Prime Minister Abiy Ahmed announced the facility’s inauguration on October 10, 2026, at the Bole Lemi Special Economic Zone in Addis Ababa. According to Ethiopia’s state-owned Ethiopian News Agency and CNBC Africa, the National Precious Metals Refinery was established through a partnership between Ethiopian Investment Holdings and international investor Sam Precious Metals. The government says the facility can process more than 600 tonnes of precious metals annually at full capacity, marking a significant addition to the country’s industrial infrastructure.
The refinery is expected to handle gold from Ethiopia and neighbouring countries, providing services including testing, refining, casting, certification and the production of gold and silver bars. Reuters reported on October 12 that the initial investment stands at $50 million, with state-owned Ethiopian Investment Holdings holding a majority stake in the venture. Abiy said the facility would allow regional mining companies to refine and certify their gold within Africa rather than sending it overseas for processing. The investment addresses a longstanding gap in Ethiopia’s mineral value chain, where raw materials have historically been exported without capturing the full commercial value associated with refining and manufacturing. According to government figures cited by Reuters, Ethiopia earned approximately $5.6 billion from gold exports last year, making the commodity a significant source of foreign exchange.
The launch forms part of Ethiopia’s wider economic strategy to expand domestic manufacturing, diversify exports and retain more value from its natural resources. Beyond potentially improving bullion quality and export competitiveness, the refinery could create skilled employment, support jewellery production and attract gold supplies from across the region. The Ethiopian News Agency reported that the government sees the facility as a step towards reducing dependence on exporting raw materials while importing higher-value finished products. However, the refinery’s longer-term contribution will depend on securing consistent gold supplies, meeting international quality standards and attracting regional customers. If successfully operated at scale, the facility could strengthen Ethiopia’s position in the precious metals trade while supporting a broader shift towards mineral processing and value addition within Africa.
