Ethiopia has confirmed plans to attract international investors to develop state-backed Bitcoin mining operations. This initiative is a key component of the country’s Digital Ethiopia 2030 roadmap, which outlines goals for modernizing financial markets, expanding digital infrastructure, and generating new sources of foreign revenue.
During the Finance Forward Ethiopia 2026 conference, Prime Minister Abiy Ahmed announced that Ethiopian Investment Holdings, a state-owned entity, is actively seeking experienced partners. These partners are expected to provide essential capital, mining hardware, and operational expertise for the planned ventures.
Hydropower Surplus Fuels Mining Growth
Ethiopia has steadily emerged as Africa’s leading Bitcoin mining hub, capitalizing on its significant large-scale hydropower assets. The country benefits from facilities like the Grand Ethiopian Renaissance Dam, which alone generates over 6,000 megawatts of electricity. A substantial portion of this energy output cannot be absorbed by the national grid, making Bitcoin mining a practical and effective solution for monetizing this surplus energy.
By the middle of 2025, Ethiopia was hosting approximately 23 mining operations. These operations collectively consumed nearly 600 megawatts of power, benefiting from an average electricity cost of $0.032 per kilowatt-hour. The state utility, Ethiopian Electric Power (EEP), plays an active role by licensing mining operations and establishing partnerships with foreign firms. In 2024, EEP reported generating around $55 million in Bitcoin mining revenue over a ten-month period.
Licensing Pause and Strategic Shift
Despite the sector's rapid growth, Ethiopia temporarily paused new crypto mining licenses in 2025. This decision was attributed to infrastructure constraints, with officials stating that EEP had reached its capacity to meet additional electricity demand from new mining operations. The government has since adopted a new strategy that emphasizes joint ventures.
This joint venture model allows the government to participate directly in mining operations, thereby reducing its reliance on private companies and enhancing state revenue capture. According to available research data, Africa currently accounts for about 3% of the global Bitcoin hashrate, with Ethiopia contributing the largest share. Analysts project this figure could double by 2027 as new hydro and energy projects become operational.
Consequently, Ethiopia is strategically positioning Bitcoin mining as an integral part of its national digital infrastructure. This approach aligns with similar strategies implemented by countries such as Bhutan, the UAE, and El Salvador.