Ethiopia PM announces launch of country’s first gold refinery

Ethiopia Prime Minister Abiy Ahmed has announced the launch of his country’s first gold refinery, ​a $50 million joint venture aimed ‌at turning the East African nation into a regional processing hub for precious metals.

The big news hit the rest of Africa and the world on Monday, and this refinery comes a fortnight after Captain Ibrahim Traore of Burkina Faso announced his nation’s first gold export refinery before Kenya followed suit days later.

According to government data, gold exports are one ⁠of Ethiopia’s main sources of ​foreign exchange, earning the country $5.6 billion last ​year.

Abiy Abiy revealed that the new refinery would process gold from Ethiopia ​and elsewhere, and it is one that all of Africa is keeping close tabs on to see how much earnings and impact it can make.

“It enables neighbouring countries and ​regional mining companies to bring their gold to ‌Ethiopia ⁠for advanced refining, certification, value addition, and sale, eliminating the need to export it outside the continent,” wrote Abiy ​Ahmed ​in ⁠a social media post Saturday.

Also, this new refinery in Ethiopia is expected to provide services including melting, ​testing, ⁠refining, casting, bar minting and die-making.

The initial investment in the refinery is $50 million, ⁠with ​state-owned Ethiopian Investment Holdings ​taking a majority stake, Abiy stated.

About 10 days ago, Nigerian billionaire Aliko Dangote and President of Kenya William Ruto broke ground on a $16bn (£12bn) oil refinery on Kenya’s northern coast in Lamu.

Kenya’s refinery will process 700,000 barrels of crude oil a day once it gets completed, and it is sure to become the biggest industrial project in East Africa by capacity.

Like Kenya and Burkina Faso, Ethiopia has made a huge call on control over its natural resources, but the success of these projects are heavily dependent on factors such as refinery technology and operational efficiency as well as market conditions and profitability. 

African nations are investing in refineries to reduce fuel imports, strengthen energy security, create jobs, and boost economic growth. 

Ethiopia, Burkina Faso, Kenya, Nigeria, Ghana, Uganda, and Angola are pursuing refining initiatives at different stages, and the aim of these developments is to increase local fuel production, stabilize supplies, and capture greater value from Africa’s oil resources.

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