Ethiopia Opens Precious Metals Refinery to Boost Export Earnings

Ethiopia has inaugurated a precious metals refinery with an annual processing capacity exceeding 600 tonnes, as the government seeks to increase export earnings by processing more of its mineral resources domestically.

Prime Minister Abiy Ahmed (PhD) said the facility would help reduce the country's reliance on exporting raw materials and importing finished products, a longstanding trade imbalance the government aims to address through its Medemer development strategy.

Speaking at the inauguration ceremony, Abiy said Ethiopia had historically lost potential export revenue by selling unprocessed commodities at relatively low prices, while overseas markets captured the additional value generated through refining, packaging and marketing.

He cited coffee as an example, saying a product sold for eight US dollars in Addis Ababa could fetch more than 30 US dollars after processing and international marketing. He said a similar gap existed in the gold trade, where domestic refining could allow Ethiopia to retain a greater share of the value generated from its mineral resources.

Ethiopia exported gold worth 5.6 billion US dollars last year, according to the prime minister's remarks. Abiy said the absence of adequate refining capacity had limited the country's ability to maximise returns from gold exports. He added that raw gold could contain other commercially valuable minerals, including silver, which could be lost during processing when appropriate technology was unavailable.

The new facility is expected to improve the quality of gold exports, recover valuable by-products and increase the share of mineral revenue retained within the domestic economy.

Abiy said the refinery could also serve markets beyond Ethiopia by attracting gold supplies from other countries, potentially creating additional commercial opportunities and strengthening the country's position in regional precious metals trading.

He put the facility's potential annual export value at up to 80 billion US dollars, conditional on collecting and processing sufficient quantities of gold. The figure was presented as a potential capacity rather than confirmed export revenue.

The refinery is structured as a partnership in which the Ethiopian side holds a 51 percent stake and an international partner owns the remaining 49 percent, according to Abiy. He said domestic participation in the investment was intended to strengthen Ethiopia's role in the international precious metals market.

The project forms part of the government's efforts to expand domestic processing across the economy, including the mining and infrastructure sectors, while developing the technical expertise required to operate major industrial facilities.

Abiy also pointed to the growing involvement of Ethiopian professionals in managing industrial operations, presenting local skills development as an important component of the country's industrial ambitions.

Ethiopia has exported gold for decades, but the establishment of domestic refining capacity is intended to improve its ability to meet international market standards and capture more value from its mineral resources.

Source: FSX Business News