Photo @PMEthiopia
Ethiopia has launched its first gold refinery, a facility designed to expand domestic processing, increase export earnings and strengthen the country’s position in Africa’s precious metals industry.
The National Precious Metals Refinery, located at the Bole Lemi Special Economic Zone, was established through a partnership between Ethiopian Investment Holdings (EIH) and international investor Sam Precious Metals. The facility marks a step in Ethiopia’s efforts to move beyond exporting raw minerals towards refining and manufacturing higher-value products locally.
With the capacity to process more than 600 tonnes of precious metals annually at full capacity, the refinery is expected to support the government’s efforts to develop the mining sector and increase the value generated from the country’s natural resources.
Prime Minister Abiy Ahmed announced the launch on Monday, October 12, 2026, as Ethiopia seeks to strengthen its industrial capacity and improve returns from gold production.
The refinery is designed to assay, refine and cast gold into export-ready bullion. It will also produce cast and minted gold and silver bars in different purities, creating opportunities to serve regional and international markets.
In a statement published by the Prime Minister’s Office on X, the government described the launch as a significant milestone in Ethiopia’s industrial development ambitions.
“Mining remains a priority productive sector for Ethiopia’s economy, with gold delivering remarkable results,” the statement said.
The government said the project reflected its commitment to connecting domestic resources with processing capacity and industrial development, under its Medemer development philosophy.
The facility is also expected to improve transparency, quality assurance and confidence in gold valuation, areas that are important for strengthening the formal gold trade and attracting investment.
By refining gold locally, Ethiopia aims to retain a greater share of the value generated along the precious metals supply chain rather than relying primarily on the export of unprocessed material.
The refinery’s annual processing capacity of more than 600 tonnes could also provide a platform for expanding precious metals manufacturing and positioning Ethiopia as a regional refining centre. However, achieving that ambition will depend on the facility’s utilisation, the availability of gold supplies and its ability to compete in international markets.
Photo @PMEthiopia
Gold has become an important source of foreign exchange for Ethiopia, as the government seeks to expand export revenues and strengthen access to hard currency. Increasing the volume of gold processed through formal channels could help improve the traceability and valuation of exports.
The partnership between EIH and Sam Precious Metals brings together a state investment institution and international investment as Ethiopia seeks to expand industrial activity around its mineral resources.
The project also reflects a broader policy objective of linking mining with manufacturing, investment and job creation, rather than treating mineral extraction as an end in itself.
The National Precious Metals Refinery is intended to support that transition by creating domestic capacity for refining, casting and producing precious metals for commercial markets.
Ethiopia’s longer-term challenge will be to translate the new facility’s capacity into sustained production, stronger export performance and wider economic benefits for the mining industry.
The government’s stated ambition is to transform the country’s natural resources into greater domestic value, stronger industrial capabilities and expanded opportunities in regional and international markets.
