Ethiopia is making a bold move to deepen its role in the global Bitcoin mining industry, with the government now actively seeking international investment partners to scale mining operations under state oversight.
Digital Ethiopia 2030 Puts Bitcoin on the Map
Speaking at the Finance Forward Ethiopia 2026 conference, Prime Minister Abiy Ahmed confirmed that the country is searching for experienced Bitcoin mining partners capable of providing capital, technology, and operational expertise. The effort is part of Ethiopia’s long-term Digital Ethiopia 2030 strategy, which aims to modernize the financial sector, strengthen capital markets, and accelerate digital transformation.
The initiative will be led through Ethiopian Investment Holdings, a state-owned entity tasked with ensuring that Bitcoin mining revenues flow directly to the government, rather than remaining solely in private hands.
Hydropower Turns Ethiopia Into a Mining Hub
Although largely under the radar, Ethiopia has quietly emerged as Africa’s leading Bitcoin mining destination. The country has leveraged its vast hydropower resources-most notably the Grand Ethiopian Renaissance Dam (GERD)-to power large-scale mining operations.
GERD alone produces over 6,000 megawatts, far more than the national grid can currently absorb. By mid-2025, Ethiopia hosted around 23 mining operations, collectively drawing about 600 megawatts at an estimated 3.2 cents per kWh. Early entrants were primarily Asian firms, followed by U.S. miners and local operators.
Ethiopian Electric Power Cashes In
The government has actively supported and licensed mining through Ethiopian Electric Power (EEP), which operates 20 power stations with a combined capacity exceeding 7,900 megawatts. EEP also exports electricity to Kenya and Djibouti, with Kenya recently requesting an additional 100 megawatts on top of existing supply.
In 2024, EEP exported nearly 7% of Ethiopia’s generated power, earning $338 million in foreign currency. At the same time, Bitcoin mining generated $55 million in revenue over just 10 months, largely through agreements with 25 mining companies. One notable partnership involved UAE-based Phoenix Group, which worked with EEP to develop a new mining data center.
License Freeze Signals Strategic Shift
Despite this success, Ethiopia halted new crypto mining licenses last year, effectively pausing expansion. Authorities cited capacity limits at EEP, signaling a pivot toward a more centralized, state-led mining model rather than unchecked private growth. The current search for partners reflects that recalibration-fewer players, but larger, more strategic operations.
Africa’s Growing Role in Global Hash Rate
According to data from University of Cambridge, Africa accounts for roughly 3% of global Bitcoin hash rate, with about 2.5% generated in Ethiopia alone, primarily using hydro, geothermal, and solar energy. That share is expected to double by 2027.
Across the continent, countries are racing to monetize surplus energy. In Kenya, Gridless Compute operates hydro-powered mini-grids in Murang’a County, reducing electricity costs for local communities. The project attracted backing from Block and Stillmark, which jointly led a $2 million investment round.
Elsewhere, the Democratic Republic of Congo runs mining operations inside Virunga National Park, while South African solar developers pair daytime solar generation with nighttime mining loads to secure financing. Nigeria has taken a different approach, using mining to capture waste methane from drilling sites-though countries like Angola have banned mining outright.
Ethiopia Joins a Global Club
Globally, Ethiopia now sits alongside countries such as Russia, France, Bhutan, El Salvador, the UAE, and Japan in pursuing state-supported Bitcoin mining strategies. With surplus renewable energy and rising global demand for hash power, Ethiopia’s next phase could determine whether it becomes Africa’s dominant state-backed mining hub.
As the government courts partners, the message is clear:
