Addis Ababa, March 12, 2025 – Ethiopia is rapidly positioning itself as a global hub for Bitcoin mining, thanks to its low electricity costs, favorable regulations, and growing foreign investment. With over 25 licensed mining companies and energy consumption expected to surpass 1 gigawatt in the coming months, the country is set to become a key player in the crypto mining industry.
Government Backing and Regulatory Framework
The Ethiopian Investment Commission (EIC) and the Ministry of Trade have approved Bitcoin mining as a legitimate business activity. With electricity rates as low as USD 3.2 cents per kWh, Ethiopia offers one of the most competitive mining environments globally.
The Ethiopian Electric Power (EEP) has already generated USD 55 million in revenue from Bitcoin miners in the last 10 months, and projections indicate earnings could reach USD 123 million next year. To support the industry, Ethiopia is expanding its national grid, with South Korea’s Hyosung Corporation leading a $178 million electricity expansion project.
Foreign Investment and Industry Growth
The Ethiopian Bitcoin mining sector is currently dominated by Chinese investors, but there is increasing interest from Russia, the UAE, Germany, Belgium, the United States, Canada, and Paraguay.
• Bitmain (Kilinto) and Canaan (Hawassa) operate two of the largest facilities, consuming 120 MW and 150 MW, respectively.
• Over 200,000 mining devices have been imported into the country, with additional shipments expected in the coming months.
Ethiopia’s Hashrate Contribution and Global Position
Ethiopia now accounts for 2.5% of the global Bitcoin mining hashrate, joining the ranks of top mining nations. The country’s vast hydropower and wind energy resources, estimated at 45 GW and 10 GW, respectively, make it an ideal location for sustainable Bitcoin mining.
Lessons from Global Mining Leaders
Ethiopia is studying global mining models to avoid pitfalls faced by other nations:
• The United States leads in mining, with over 40% of the global hashrate and government-backed initiatives such as a Strategic Bitcoin Reserve.
• El Salvador successfully integrated Bitcoin mining into its national energy strategy, utilizing geothermal energy from volcanoes.
• Kazakhstan, once a mining hotspot, suffered power shortages and government crackdowns, forcing miners out of the country.
Future Prospects and Industry Events
Ethiopia’s growing influence in the Bitcoin mining space will be highlighted at major conferences, including the Africa Bitcoin Mining Summit 2024 and The Bitcoin Summit 2024, both set to take place in Addis Ababa. These events will showcase Ethiopia’s potential as a Bitcoin mining powerhouse and attract even more investors.
With its cheap electricity, strong regulatory support, and booming foreign investment, Ethiopia is on track to become Africa’s leading Bitcoin mining hub—and possibly a global leader in sustainable crypto mining.