Faith Nyasuguta
Ethiopia is taking a major step toward transforming its mining sector with plans to build the country’s first gold refinery, a move aimed at ending the export of unrefined gold and retaining more value within the national economy. The project is being driven by Ethiopian Investment Holdings (EIH), the country’s sovereign wealth fund, under the guidance of Prime Minister Abiy Ahmed, who has framed the initiative as part of a broader effort to add value to natural resources and strengthen long-term economic resilience.
For decades, Ethiopia has relied on exporting raw gold to foreign processors, a practice that limits earnings and shifts much of the profit abroad. By refining gold locally, the government says Ethiopia will be able to capture higher export revenues domestically, protect national wealth, and reduce dependence on external refining facilities. Officials also see the refinery as a practical step toward greater economic control over strategic resources.
Construction of the refinery is already underway, with completion expected in the coming months, according to government-linked sources. Once operational, the facility will process domestically mined gold that is currently sold in its raw state, allowing Ethiopia to move beyond extraction into higher-value activities. The project aligns with a growing continental push for local beneficiation and value addition as African countries seek to maximise returns from their mineral resources.
Gold remains one of Ethiopia’s most important export commodities, generating billions of dollars in foreign exchange in recent years. However, much of that income reflects volumes rather than full value, as refining and associated services have traditionally taken place outside the country. Authorities believe the new refinery will help retain a larger share of global gold market profits, while also stabilising foreign exchange earnings.
Beyond revenue, the refinery is expected to support job creation across the mining value chain, including skilled technical roles and support services. Government officials have also stressed that the project could play a key role in formalising artisanal and small-scale mining, integrating informal producers into regulated supply chains and improving oversight, safety standards, and tax collection.
The initiative is part of EIH’s wider mandate to develop national assets and diversify Ethiopia’s investment portfolio. In recent years, the sovereign wealth fund has expanded its footprint in mining and other strategic sectors, seeking to position Ethiopia for sustainable growth driven by industrial capacity rather than raw exports. The gold refinery is viewed as a flagship example of this approach.
Regionally, Ethiopia’s move reflects a broader African trend toward reducing reliance on foreign mineral processing and strengthening domestic industrial capabilities. Countries across Sub-Saharan Africa are increasingly investing in refineries and processing plants to ensure more value is retained at home, rather than exported through global supply chains dominated by external players.
If successfully implemented, Ethiopia’s first gold refinery could mark a turning point for the sector, reinforcing national sovereignty over resources, boosting employment, and signalling a clear shift toward value-added industrial development rather than dependence on raw commodity exports.
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