Ethiopia Announces National Bitcoin Mining Initiative
Ethiopia has announced plans to expand its Bitcoin mining operations through a state-backed initiative, positioning itself as Africa’s leading Bitcoin mining hub. Prime Minister Abiy Ahmed revealed at the Finance Forward Ethiopia 2026 conference that Ethiopian Investment Holdings (EIH), Africa’s largest sovereign wealth fund, is actively seeking experienced partners to provide capital, mining hardware, and operational expertise.
This marks a significant evolution in Ethiopia’s Bitcoin mining strategy. While the country has quietly hosted Bitcoin mining operations since 2021, this announcement represents the first official government-led initiative to directly participate in Bitcoin mining for national revenue generation.
The initiative emphasizes leveraging Ethiopia’s abundant hydroelectric power resources, particularly from the Grand Ethiopian Renaissance Dam (GERD), which generates over 6,000 megawatts of electricity. However, Ethiopia’s national grid cannot absorb even half of this output, making Bitcoin mining a practical solution for monetizing surplus renewable energy.
By mid-2025, Ethiopia had approximately 23 mining operations consuming nearly 600 megawatts of electricity at an average cost of $0.032 per kilowatt-hour—among the lowest electricity rates globally. These operations were initially led by Asian companies, followed by American firms, and increasingly by local Ethiopian entrepreneurs.
Ethiopian Electric Power (EEP), the state utility, has actively licensed mining operations and generated $55 million in less than a year from power-purchase agreements with Bitcoin miners. This revenue is being reinvested to develop and expand the national electricity grid.
The state-backed initiative is expected to create employment opportunities in technology and engineering sectors, particularly in rural areas near hydropower sources. By partnering with experienced international mining firms, Ethiopia aims to accelerate deployment while ensuring operational efficiency.
This development is part of a broader continental trend, with multiple African nations exploring Bitcoin mining as a way to monetize stranded renewable energy assets. Ethiopia’s approach—combining state backing with private sector expertise—offers a potential model for other African countries with similar hydropower resources but limited domestic electricity demand.