Ethiopia Opens $50m Gold Refinery to Become Regional Processing Hub

Ethiopia has launched its first gold refinery through a $50 million joint venture, aiming to expand domestic mineral processing, retain more value from gold production and establish the country as a regional hub for precious metals.

The facility, announced by Prime Minister Abiy Ahmed on 12 October 2026, is designed to process gold from Ethiopia and neighbouring countries. Its services will include melting, testing, refining, casting, gold bar minting and die-making.

The project forms part of Ethiopia’s efforts to move beyond exporting raw commodities towards higher-value processing activities that can strengthen industrial development and generate additional economic benefits.

According to Abiy, the refinery will enable regional mining companies to process, certify and sell their gold within Africa rather than sending it overseas for refining. The initiative could provide producers across East Africa with an additional option for accessing value-added processing services closer to their operations.

The initial investment amounts to $50 million, with state-owned Ethiopian Investment Holdings holding a majority stake in the joint venture.

Gold remains a major source of foreign exchange for Ethiopia. Figures cited in the report indicate that gold exports generated $5.6 billion in 2025, underlining the mineral’s importance to the country’s external earnings.

The new refinery could help Ethiopia capture a greater share of the gold value chain by providing services that extend beyond extraction and export. Local refining and certification may also create opportunities for supporting businesses involved in logistics, trading and precious metals services.

For neighbouring countries, the facility presents a potential opportunity to access regional processing infrastructure and strengthen cross-border trade in gold. Its success, however, will depend on attracting sufficient volumes from regional producers, meeting international quality requirements and establishing confidence in its refining and certification services.

Details on the refinery’s processing capacity, projected annual output and timeline for reaching full operations were not disclosed in the announcement.

The launch comes amid wider efforts across Africa to increase local mineral beneficiation and reduce dependence on processing facilities outside the continent. By investing in refining infrastructure, resource-producing countries aim to retain more economic value, develop industrial capabilities and strengthen their position in global commodity supply chains.

If the Ethiopian facility attracts sustained regional demand, it could support the development of a more integrated East African gold market and reinforce Ethiopia’s ambitions to become a centre for precious metals processing.