Burkina Faso, Ethiopia, Zambia and the Democratic Republic of Congo are investing in gold-refining facilities to retain more value from their mineral resources rather than exporting unprocessed gold for processing abroad. The DRC launched its first pilot refinery, DRC Gold Refinery S.A., in Kalemie on March 11, with a capacity of 500 to 600kg monthly. Burkina Faso inaugurated RAFFINOR-BF in September with an initial annual capacity of 164 tonnes and plans to expand to 515 tonnes. Ethiopia launched a $50 million precious metals refinery in October with the capacity to process more than 600 tonnes of precious metals annually, while Zambia unveiled a new refinery on October 25 developed by Minera Refineries Zambia Limited.
The investments come as international gold prices have climbed substantially. According to the World Gold Council, gold reached a record $5,595 per ounce in January 2026 before retreating to around $3,946.2 on Friday at 1 pm, weighed down by expectations of higher US interest rates and a stronger dollar. Despite the correction, prices remain substantially above their 2023 average of about $1,955 per ounce. The rally has also increased the value of gold held by African central banks. Analysis of World Gold Council data shows that the combined dollar value of reserves held by eight African countries, South Africa, Nigeria, Ghana, Mauritius, Algeria, Egypt, Morocco and Kenya, rose by 113.5 percent to $66.6 billion in the second quarter of 2026 from $31.2 billion in the corresponding period of 2023. Algeria held the largest reserves by value at $22.5 billion, followed by Egypt at $16.8 billion and South Africa at $16.3 billion.
However, establishing refining capacity faces significant hurdles. Sikiru Haruna, mines manager at Segilola Resources Operating Limited, explained that modern refining technologies can produce high-purity gold, Miller chlorination typically produces gold of around 99.5 percent purity, while Wohlwill electrolysis and suitable chemical refining processes achieve 99.99 percent or higher. Yet technical capability and market recognition are separate issues. A refinery producing 99.99 percent gold does not automatically qualify for inclusion on the London Bullion Market Association's Good Delivery List, which is a major benchmark in the international wholesale bullion market with requirements extending beyond purity to technical competence, consistent product quality, financial standing and responsible sourcing. Haruna said newer refineries must invest in reliable laboratories, independent assaying, traceability systems and international partnerships to establish confidence comparable to South Africa's Rand Refinery, established in 1920.
Access to financing poses another critical challenge. A refinery must purchase gold before processing it, creating substantial working-capital requirements. Haruna illustrated this with the cost of purchasing 100kg of gold at an assumed $100,000 per kilogram, which would require $10 million before insurance, transport, security and operating expenses. André Lourens, mining economist at KPMG South Africa, said Africa's principal challenge was commercial rather than technological. Buyers and financiers would need reasons to use new African facilities instead of established centres such as Switzerland. Lourens warned that illegal mining, corruption and exploitative labour practices could undermine international acceptance, making responsible sourcing and predictable regulations essential to attracting long-term investment.
For Uche Chijioke, head of operations and administration systems at Kian Smith, African countries must complement individual refinery investments with a trusted regional gold market, supported by consistent quality, traceability, recognised standards and stronger relationships with international buyers. The opportunity extends beyond producing more gold. If African countries can formalise production, refine locally, expand jewellery and other manufacturing industries, and retain more export earnings, the sector could support industrial jobs, technology transfer, stronger public revenues and more diversified foreign exchange sources. But the transition will depend on whether new facilities can secure legitimate supplies, achieve international recognition and attract sustained commercial demand.