Ethiopia is seeking to establish itself as a regional precious metals processing centre following the opening of a new refinery, while Kenya pursues international investment to develop its niobium and rare earth deposits. Together, the initiatives highlight efforts by African governments to expand domestic processing capacity and retain more economic value from mineral resources.
Ethiopia inaugurated its National Precious Metals Refinery at the Bole Lemi Special Economic Zone on 10 October. The facility, developed through a partnership between state-owned Ethiopian Investment Holdings and Dubai-based Sam Precious Metals, represents an investment of approximately $50 million, according to Ethiopian authorities. It is designed to process more than 600 tonnes of precious metals annually at full capacity.
Prime Minister Abiy Ahmed said the refinery would allow mining companies from neighbouring countries to access refining, certification and value-addition services within Africa, potentially reducing their reliance on processing facilities outside the continent.
Keith Nare, a director at the Africa Gold Council, identified Kenya, Uganda and Sudan as potential sources of regional business, according to Forbes Africa. However, the refinery’s announced capacity should not be confused with confirmed throughput. Its ability to attract substantial volumes of foreign gold will depend on commercial terms, supply arrangements, certification standards and access to international markets.
For Ethiopia, the investment forms part of a broader effort to move beyond mineral extraction towards processing and manufacturing. Developing these capabilities could strengthen export earnings and support industrial employment, although the economic benefits will depend on sustained supply, efficient operations and the refinery’s competitiveness.
Kenya is pursuing a related but distinct opportunity at Mrima Hill in Kwale County, where deposits of niobium and rare earth elements have attracted interest from international mining companies and governments seeking to diversify critical mineral supply chains.
In September, Kenya’s Mining Cabinet Secretary, Hassan Ali Joho, said discussions with the United States on a potential critical minerals partnership were at an advanced stage. The proposed cooperation could support the development of processing plants and refineries in Kenya, reflecting Nairobi’s interest in capturing more value domestically rather than relying exclusively on raw mineral exports.
An Australian-led consortium involving RareX and Iluka Resources has also advanced through the Mrima Hill tender process. Its proposed model envisages mining and initial processing in Kenya, with rare earth concentrate subsequently transported to Iluka’s Eneabba refinery in Western Australia for further processing. The consortium’s progress through the tender process does not, in itself, constitute a final award or guarantee that the project will proceed as proposed.
The competing proposals illustrate the choices facing resource-rich African countries as they negotiate investment, technology transfer, local employment and access to international markets. Processing minerals domestically can support industrial development, but building commercially viable facilities also requires reliable infrastructure, technical expertise, adequate energy supplies and buyers for the finished products.
The Ethiopian and Kenyan initiatives should not be treated as interchangeable. Ethiopia’s refinery focuses on precious metals, particularly gold and silver, whereas Mrima Hill is associated with niobium and rare earth elements used in advanced manufacturing. Ethiopia’s effort to attract regional gold therefore does not depend directly on the outcome of Kenya’s critical minerals tender.
Whether Kenyan gold producers will use the Ethiopian refinery remains unclear. Any arrangement would depend on refining costs, transport, regulatory requirements, traceability and the standards required by buyers.
The wider question is how African economies can develop complementary industrial capabilities while retaining the freedom to choose commercially and strategically beneficial partnerships. Regional refining could strengthen intra-African trade, but its success will depend on whether infrastructure and investment translate into competitive services and measurable economic benefits for producing countries.
For Ethiopia and Kenya, the challenge is not simply to attract foreign capital. It is to ensure that mineral development supports broader industrial capacity, skills, employment and durable domestic value creation.
