Ethiopia launches gold refinery

Ethiopia has opened its first gold refinery, aiming to challenge neighboring East African nations like Rwanda and Uganda in the gold processing industry. The facility, inaugurated on October 10, is a $50 million project mainly owned by Ethiopian Investment Holdings, a state-linked firm.

Regional gold trade dynamics

Uganda exported $5.8 billion worth of gold in 2025, much of which relied on gold imported from the Democratic Republic of Congo and South Sudan for processing and marketing. Rwanda, which already has a gold refinery, exported about $519 million in gold in 2025, while Tanzania has six refineries and Kenya is preparing a new one in Kakamega.

Ethiopia’s growing gold exports

Ethiopia’s gold exports have grown significantly, rising from just over 4 tonnes in 2023-2024 to nearly 39 tonnes in 2024-2025, according to the International Monetary Fund. This growth is attributed to increased official gold sales, stock releases, and new mining operations like Kurmuk. A Canadian company, Allied Gold, plans to produce up to 8.4 tonnes of gold annually by 2027.

Taxation and competition

Having a refinery is not enough to attract gold; states must also offer competitive conditions for producers and traders, especially in taxation. Rwanda reduced taxes on locally processed minerals in 2024 to boost its appeal as a regional processing hub. Ethiopia introduced tax and customs benefits for export-oriented refineries in February 2026, but details about conditions for foreign gold suppliers are unclear.

Challenges in refining

An analysis by Chatham House in September 2024 noted that illicit gold shipments from Ethiopian airports to Uganda, followed by re-export to the United Arab Emirates, were common. Tanzania’s experience shows the difficulty in attracting enough gold, as its Mwanza refinery processes only 50 to 100 kilograms per day, far below its 480-kilogram capacity.

Low-margin refining challenges

A 2026 report by the Global Initiative against Transnational Organized Crime noted that gold refining is a low-margin industry requiring large volumes. The report warned that the search for supplies might lead to neglecting their origins. The success of Ethiopia’s refinery will depend on its ability to secure and process significant volumes of gold, competing with established regional networks.