Ethiopia seeks partners to turn state-backed bitcoin mining into revenue

Ethiopia’s Prime Minister has announced that the government is actively seeking investment partners for Bitcoin mining. This move is part of the country’s “Digital Ethiopia 2030” plan, which seeks to develop the country’s financial sector and boost capital markets and digitalization.

At the Finance Forward Ethiopia 2026 conference, Prime Minister Abiy Ahmed said that Ethiopian Investment Holdings, a state-owned company, is seeking experienced partners who can provide capital, technology, and mining expertise. By doing this, Ethiopia aims to earn revenue directly for the country rather than relying only on private companies. 

Ethiopian Electric Power generates $millions from Bitcoin mining

Over the past few years, the country has quietly become Africa’s leading Bitcoin mining hub. Ethiopia has leveraged its massive Grand Ethiopian Renaissance Dam (GERD) and other hydropower projects for Bitcoin and crypto mining. 

The Grand Ethiopian Renaissance Dam generates over 6,000 megawatts, but the grid cannot absorb even half that amount. By mid-2025, the country had approximately 23 mining operations. They were initially led by Asian companies, followed by the Americans, and then locals getting in on the action. All collectively pulled around 600 megawatts at 3.2 cents per kWh.

The country’s government actively promotes and licenses crypto mining. For instance, the UAE-based Phoenix Group announced a partnership with Ethiopian Electric Power (EEP), the nation’s state-owned utility, for a new mining data center. 

EEP currently operates 20 power stations with a combined capacity exceeding 7,900 megawatts. It does power exports to Kenya and Djibouti. It has seen growth as Kenya requested an additional 100 megawatts on top of the 200 megawatts it currently receives.

In 2024, EEP exported nearly 7% of Ethiopia’s generated power, earning $338 million in foreign currency. It generated $55 million in Bitcoin mining revenue over 10 months that year, primarily through agreements with 25 mining companies.

However, the country halted new crypto mining licenses for data mining companies last year, effectively halting the expansion of cryptocurrency mining. As reported by Cryptopolitan, the state claimed that the state-owned Ethiopian Electric Power (EEP) had reached its limit in meeting new demand.

Foreign investors flood Africa to leverage on their power

According to Cambridge, Africa accounts for approximately 3% of global BTC hash rate, nearly all hydro, geothermal, or solar with  2.5% is generated in Ethiopia. Overall, that’s expected to double by 2027, with Rwanda negotiating small modular reactors and Malawi completing new Shire River dams.

In Kenya, Gridless Compute is a leader in Bitcoin mining. Established in 2022, the company has built hydro-electric mini-grids in Murang’a County, in a partnership with HydroBox, an African hydroelectric power company.

These mini-grids use river water to generate electricity, powering Bitcoin mining operations. In Murang’a, Kenya, Gridless operates Bitcoin mining sites, lowering energy rates for 2,000 people in the area. The company says it has helped reduce the village’s electricity costs from $10 per month to $4.

The project has garnered attention from the global crypto community. Block, the digital payments company run by former Twitter (X) CEO Jack Dorsey, and Stillmark, a Bitcoin-focused venture firm, led a $2 million startup investment into Gridless. 

The Democratic Republic of Congo also manages a modest program within Virunga National Park. Also, South African solar developers combine daytime solar panels with evening mining loads to secure bank financing that they would not be able to attain solely with residential consumers. 

Nigeria, on the other hand, conducts operations that recover waste methane from drilling platforms rather than releasing it into the atmosphere through combustion. However, African countries like Angola banned mining outright.

Globally, other countries with government-sponsored Bitcoin mining include Russia, France, Bhutan, El Salvador, and the UAE. Japan became the 11th country to join the list. Japan has witnessed massive crypto adoption, with Metaplanet as the fourth-largest Bitcoin treasury.

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