Ethiopia is actively pursuing international investment to establish its own Bitcoin mining infrastructure, as announced by Prime Minister Abiy Ahmed during a recent parliamentary session. This initiative aims to harness the country”s surplus renewable energy resources, transforming them into revenue-generating cryptocurrency operations.
The Ethiopian government is transitioning from a regulatory sandbox to a more structured digital economy, as it seeks to formalize its approach to cryptocurrency. The strategy involves leveraging excess energy that would otherwise go unused to generate foreign currency, boosting local industry through international technology partnerships.
During his address, Prime Minister Ahmed emphasized the economic potential of Bitcoin mining, stating that a commitment of 1,000 megawatts of energy could yield annual revenues ranging between $300 million to $500 million. He cited a previous instance where the allocation of 200 megawatts to a single company resulted in earnings exceeding the energy”s cost by tens of millions of dollars.
Furthermore, he noted that the government is actively seeking investment partners to further this venture, highlighting the importance of collaboration to mitigate past losses associated with haphazard licensing. By engaging companies willing to invest fully in energy and infrastructure, while allowing the government to maintain a stake, Ethiopia aims to stabilize its mining sector.
Ethiopia”s foray into cryptocurrency mining is not entirely new, as the country has been attracting energy-intensive industries for several years. The issuance of licenses to data centers and Bitcoin mining operations, particularly those relocating from regions with stricter regulations and high energy costs, gained traction around 2024.
According to the Q1 2026 Global Hashrate Heatmap by Hashrate Index, Ethiopia now accounts for approximately 2.6% of the global Bitcoin hashrate, reflecting a 38% growth quarter-over-quarter and a remarkable 129% year-over-year increase. This growth comes despite a temporary halt on new power permits in mid-2025, indicating that existing hydro-powered facilities are scaling their output.
The emergence of Ethiopia as a potential Bitcoin mining hub represents a significant shift from 2022 when crypto activities were largely illegal. The development of major hydroelectric projects, such as the Grand Ethiopian Renaissance Dam, has resulted in a surplus of renewable energy generation, prompting the government to explore digital mining as a means of economic advancement.
If successfully implemented, this strategy could position Ethiopia as a leading Bitcoin mining center in Africa and beyond, attracting significant investment and formal regulation. However, it remains to be seen how the government will balance the energy needs of mining operations with the requirements of its citizens, alongside the establishment of appropriate regulatory frameworks.
