Ethiopia opens first gold refinery to process gold at home

Overview

Updated Oct 21

Ethiopia opened its first precious metals refinery on October 10, ending a long practice of shipping raw gold abroad for processing. The $50 million plant at Bole Lemi Special Economic Zone in Addis Ababa is built to handle more than 600 tonnes of gold and silver a year. That is more than 13 times the 44 tonnes of gold Ethiopia produced in the fiscal year that ended in July.

The state holds 51% through Ethiopian Investment Holdings; Dubai-based Sam Precious Metals owns the rest. Prime Minister Abiy Ahmed says the plant can serve miners across East Africa, and the government expects a central, traceable supply chain to curb smuggling. Ethiopia's own gold supply may grow: on October 19 the mines minister visited the $620 million Kurmuk project near Sudan, designed to produce nine tonnes a year.

Why it matters

Ethiopia exports about $5.6 billion of gold a year; refining locally could roughly double the value its gold fetches abroad.

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Key Indicators

$50M

Initial investment

Joint venture between Ethiopian Investment Holdings and Sam Precious Metals.

600+ tonnes

Annual refining capacity

Installed design capacity, far above Ethiopia's 44-tonne annual gold output.

51%

State ownership stake

Ethiopian Investment Holdings owns 51%; Sam Precious Metals holds 49%.

$5.6B

Gold export earnings, last fiscal year

Roughly half of Ethiopia's $11 billion in merchandise exports.

44.07 tonnes

Gold produced in 2025/26

Traditional miners produced 40.86 tonnes; licensed companies 3.2 tonnes.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Abiy Ahmed Ali

Prime Minister of Ethiopia

Presided over the refinery's October 10 inauguration

Eyob Tekalign

Governor, National Bank of Ethiopia

Says all Ethiopia-produced gold will be refined at home before export

Fekadu Degafe

Vice Governor, National Bank of Ethiopia

Advocated local refining to cut costs and hold gold reserves at home

Organizations Involved

Ethiopian Investment Holdings (EIH)

State-owned investment holding company

Majority owner of the refinery joint venture (51%)

The state's investment arm and majority partner in the new refinery.

Sam Precious Metals

Gold refiner

Minority partner in the refinery (49%)

Dubai-based refiner with a branch in Cairo; the foreign partner in Ethiopia's refinery venture.

National Precious Metals Refinery

Precious metals refinery

Operational since October 10, 2026

The $50 million, 600-tonne-capacity plant at Bole Lemi Special Economic Zone.

Bole Lemi Special Economic Zone

Special economic zone

Site of the new refinery

Industrial zone on the southern edge of Addis Ababa where the refinery operates.

Timeline

2 events Latest: October 19th, 2026 · 3 weeks ago

October 2026
Mines minister visits $620m Kurmuk gold project
Latest Mining

The project in Benishangul-Gumuz near the Sudanese border is designed to produce nine tonnes of gold a year. Commissioning work at its crushing plant had already begun, according to Ethiopian Business View.
October 19th, 2026
Ethiopia inaugurates National Precious Metals Refinery
Infrastructure

The $50 million, 600-tonne-capacity plant opens at Bole Lemi, with the state holding 51% and Sam Precious Metals 49%.
October 10th, 2026

Scenarios

Ethiopia's refinery becomes East Africa's processing hub

Possible Resolves by Oct 10, 2027

Discussed by: Ethiopian government statements; Prime Minister Abiy Ahmed

The 600-tonne capacity is built around attracting gold from neighboring countries and regional mining companies, who bring ore for refining, certification and sale. For that to happen, the refinery must match Dubai's costs and turnaround times, establish trust in its certificates, and persuade miners the premiums justify the switch. Abiy has said the plant could support up to $80 billion of exports a year if enough gold flows in.

Refinery runs far below capacity as smuggling and Dubai competition persist

Possible Resolves by Oct 10, 2027

Discussed by: AFNIS Insights; Ukumbi Afrika analysis

The facility's economics depend on actual volumes, not installed capacity. AFNIS notes that competing with established refiners on cost, turnaround time and certification is hard, and that weak traceability could cut access to high-standard markets. If most gold keeps flowing through informal channels or to Dubai, the plant processes little more than the 44 tonnes Ethiopia produces itself.

International accreditation unlocks premium markets

Uncertain Resolves by Oct 10, 2028

Discussed by: AFNIS Insights

Reliable traceability and recognized certification are the gateways to high-standard international buyers. If the refinery earns a place on an accepted international accreditation list, its bars become directly saleable to bullion banks and its certificates are trusted, broadening the buyer base. Weak controls would do the opposite and limit where the gold can be sold.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

January 2020

Indonesia's nickel ore export ban (2020)

Indonesia stopped exporting unprocessed nickel ore to force smelting investment at home. Chinese companies poured billions into processing plants on Sulawesi and neighboring islands.

Then

Smelting capacity surged and nickel export values rose; the European Union filed a World Trade Organization complaint over the ban.

Now

Indonesia extended export curbs to bauxite and copper concentrate, and its nickel processing complex became central to global battery supply chains.

Why this matters now

A live test of the same bet Ethiopia is making: restrict or redirect raw exports to capture downstream processing value at home.

2000s

Dubai's rise as a gold-refining hub (2000s)

Dubai built refining capacity near its Jebel Ali free zone and the Dubai Multi Commodities Centre, becoming a global center for melting and re-exporting gold, much of it shipped raw from African mines.

Then

Refiners including Kaloti and Emirates Gold grew into major buyers of African bullion.

Now

Dubai came to dominate gold refining across the region — the exact destination Ethiopia has relied on and now seeks to replace.

Why this matters now

Dubai is the established competitor, and its scale and certification standards set the bar Ethiopia must match.

2013

Botswana's diamond beneficiation (2013)

Under a new sales agreement, De Beers moved global sorting and valuing of rough diamonds to Gaborone. Botswana already co-owned the Debswana mines with De Beers.

Then

Hundreds of specialized jobs and a trading floor shifted to Gaborone, keeping more diamond revenue in Botswana.

Now

It became a reference case for African resource beneficiation, though Botswana never captured full polishing or jewelry manufacturing.

Why this matters now

Shows an African country extracting more value from its minerals by hosting processing within its borders — and the limits of that approach.