Ethiopia has launched its first gold refinery, a $50-million joint venture aimed at turning the East African nation into a regional processing hub for precious metals, Prime Minister Abiy Ahmed said over the weekend.

Gold exports are one of Ethiopia's main sources of foreign exchange, earning the country $5.6-billion last year, according to government data.

Ahmed said the new refinery would process gold from Ethiopia and elsewhere.

"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," Ahmed said in a post on social media platform X on Saturday.

The refinery will 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, Ahmed said.