Ethiopia attempts economic leap with state-owned Bitcoin mining

2026-01-20 01:57:10

Source: DigitalToday Original Title: Ethiopia Attempts Economic Leap with State-Run Bitcoin Mining Original Link:

Ethiopia is accelerating its digital economic transition by formalizing a government-led Bitcoin(BTC) mining plan.

Prime Minister Abiy Ahmed recently stated at the ‘Finance Forward Ethiopia 2026’ conference that the government is actively seeking investment partners for state-run Bitcoin mining, and Ethiopia Investment Holdings(EIH), a sovereign fund, is looking for experienced partners who can provide capital, technology, and mining expertise.

Over the past few years, Ethiopia has established itself as one of Africa’s top Bitcoin mining hubs. The country has utilized the Grand Ethiopian Renaissance Dam(GERD) and other hydroelectric projects for Bitcoin and cryptocurrency mining. GERD produces over 6,000MW(MW) of power, but only about half is currently being utilized. By mid-2025, Ethiopia had approximately 23 cryptocurrency mining companies, led by Asian firms, with participation from U.S. and local companies.

The Ethiopian government actively supports cryptocurrency mining, with investments such as UAE-based Phoenix Group collaborating with Ethiopia Electric Power(EEP) to establish new mining data centers. EEP has over 7,900MW(MW) of generation capacity and exports electricity to Kenya and Djibouti, earning $338 million in foreign exchange as of 2024. In the same year, an additional $55 million was generated through Bitcoin mining over ten months.

However, recent suspension of new mining license issuance has slowed expansion, citing that EEP has reached its power supply limits. Nonetheless, other African countries are also entering Bitcoin mining. Kenya’s Gridless Compute is utilizing small hydroelectric plants to lower local electricity costs, while Nigeria is attempting eco-friendly mining by harnessing methane from drilling platforms. Meanwhile, Angola has banned mining altogether.

Globally, countries promoting state-run Bitcoin mining include Russia, France, Bhutan, El Salvador, and the UAE, with Japan recently joining this list. It remains to be seen whether Ethiopia’s state-run Bitcoin mining will drive economic growth.

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