Ethiopia is moving to capture more value from its gold industry with a new precious metals refinery capable of processing more than 600 tons annually, as the government seeks to reduce its reliance on overseas facilities and strengthen domestic control over a major source of foreign currency.

The refinery, inaugurated on October 10 at the Bole Lemi Special Economic Zone, comes as gold accounted for a reported $5.5 billion of Ethiopia’s $11 billion in total export earnings during the 2025/26 fiscal year. That puts the metal at roughly half of the country’s reported export revenue, making the ability to process and certify it locally an important economic consideration.

Prime Minister Abiy Ahmed announced the facility’s opening, presenting it as a potential refining hub for Ethiopia and other African mining markets. The project could help shift more of the value generated by precious metals from foreign processing centres to facilities closer to where the resources are mined, although its commercial impact will depend on how much gold it attracts and processes.

State takes majority stake

The refinery was established through a partnership between state-owned Ethiopian Investment Holdings (EIH), which owns 51%, and Sam Precious Metals, which holds the remaining 49%.

Its operations will include testing, refining and casting gold into export-ready bullion, alongside the production of gold and silver bars. These services could allow more stages of the precious metals supply chain to take place inside Ethiopia rather than sending raw material abroad for processing.

The announced annual capacity of more than 600 tons is substantial relative to Ethiopia’s projected gold exports. The International Monetary Fund estimated that the country would export approximately 30 tons of gold in 2025/26, down from 39 tons in the previous fiscal year.

However, the figures measure different things. The refinery’s capacity covers precious metals processing and could include material sourced from other countries, while the IMF figures relate specifically to Ethiopia’s gold exports.

Dubai link faces a potential shift

Ethiopia has relied on overseas facilities to refine its gold before it reaches international markets. In its fifth review of the country’s financing programme, published in July 2026, the IMF said chartered flights had been used to transport raw Ethiopian gold to Dubai, which it identified at the time as the sole refining destination and importer of Ethiopian gold.

A domestic refinery creates an alternative, potentially allowing Ethiopia to retain more processing activity and develop greater control over the preparation of bullion for export. The extent of any shift will depend on the facility’s operating performance and its ability to attract sufficient volumes.

The IMF also attributed part of the projected decline in gold export volumes to the depletion of inventories accumulated during the Tigray conflict. Higher international gold prices were expected to support export values despite the lower volumes.

Regional ambitions extend beyond Ethiopia

Abiy said the refinery could serve neighbouring countries and mining companies across Africa, positioning the facility as a potential regional centre for refining, testing and certification. That ambition would give the project a broader commercial opportunity than domestic production alone.

If it attracts third-party business, Ethiopia could generate additional activity from processing minerals mined elsewhere, although no regional processing volumes were specified in the announcement.

The National Bank of Ethiopia remains the country’s sole authorised gold exporter, according to the central bank. Its role in purchasing and exporting the metal connects the industry directly to the country’s management of foreign exchange.

With gold already generating billions of dollars in export earnings, the refinery’s significance will ultimately rest on whether Ethiopia can turn its processing capacity into greater domestic value creation, stronger export infrastructure and a viable regional precious metals business.