Bitcoin mining operations in Ethiopia account for approximately 18% of the country's overall electricity sales.
In the heart of Africa, Ethiopia has become a significant player in the global Bitcoin mining landscape. The state-owned Ethiopian Electric Power (EEP) has seen a surge in revenue, generating approximately $55 million in 2024 and an estimated $200 million in the first half of 2025 from Bitcoin mining operations [2][3][5].
The primary source of this increased revenue is the sale of surplus electricity, largely hydroelectric power from the Grand Ethiopian Renaissance Dam (GERD), to Bitcoin mining companies, the majority of which are foreign, including several Chinese firms [2][3][5]. Ethiopia accounts for about 5% of the global Bitcoin hashrate, with 25 active mining companies attracted by low-cost hydroelectric power [2][3][5].
However, this mining boom has put a considerable strain on Ethiopia's electricity supply. By 2025, crypto mining is estimated to consume about 27-33% of the national grid's capacity, threatening energy availability for essential public infrastructure and rural electrification [1][4][5]. EEP has now reached its capacity limit for supplying power to mining operations and has frozen new crypto mining permits since mid-2025 to preserve electricity for wider domestic needs [3].
In response to energy security concerns and public pressure, the Ethiopian government has decided to phase out all cryptocurrency mining by 2025. This includes terminating existing mining permits held by foreign companies, including Chinese enterprises, and redirecting electricity toward more equitable, sustainable uses such as public infrastructure and rural electrification [1][4].
Hiwot Eshetu, EEP's marketing director, stated to The Africa Report that Bitcoin miners have substantial funds for investments, and the funds are needed to develop Ethiopia's energy network. She also emphasised that without miners, the excess electricity would simply go to waste [4]. Bitcoin miner Kal Kassa reports that equipment in Ethiopia accounts for 2.5% of the network's total hash rate, a percentage that is more than Ethiopia's entire export of electricity to neighbouring countries [1].
The surge in mining activity can be attributed to the low tariffs, a result of the partial commissioning of a new hydroelectric power station on the Blue Nile River. However, the dam, funded by China, is not yet fully commissioned as of November 2024 [1][4].
In summary, Bitcoin mining has been a notable source of foreign revenue and helped monetize surplus hydroelectric power in Ethiopia. However, it has become unsustainable for the country's domestic energy needs, prompting a policy reversal and the planned elimination of crypto mining activity in the near term [1][2][3][5].
| Aspect | Details | |-----------------------------|---------------------------------------------------------------------| | Revenue to EEP | $55 million (2024), $200 million (first half of 2025) | | Electricity consumption | 27-33% of Ethiopia’s power grid capacity | | Major operators | Over 25 companies, including Chinese firms, contributing ~5% global Bitcoin hashrate | | EEP response | Halted new permits; reached supply capacity | | Government policy | Phasing out crypto mining by 2025 to prioritize energy security and rural electrification |
The surge in Bitcoin mining revenue, primarily from the sale of surplus hydroelectric power, has attracted over 25 foreign companies, including Chinese firms, to Ethiopia's market. However, the increased consumption of power by these mining operations has put a considerable strain on the nation's energy supply, accounting for nearly a third of the national grid's capacity by 2025.
In response to energy security concerns and to prioritize rural electrification and public infrastructure, the Ethiopian government has announced plans to phase out all cryptocurrency mining by 2025, thereby redirecting excess electricity towards more equitable, sustainable uses.
