TL;DR
- The Ethiopian government is seeking a partner to launch a state-backed Bitcoin mining project, requiring capital, technology, and mining expertise.
- The country hosts 25 licensed mining companies that control 2.5% of Bitcoin’s hash rate and have generated over $200 million in revenue.
- The state strategy aims to retain and generate value within the country, utilize energy surpluses, develop local technical skills, and double mining capacity by 2027.
The Ethiopian government is looking to partner with international investors to launch a state-backed Bitcoin mining project, according to Prime Minister Abiy Ahmed at the Finance Forward Ethiopia 2026 conference. The initiative will be managed through Ethiopian Investment Holdings, a state-owned company seeking partners with capital, technology, and mining expertise.
The goal is to generate revenue directly for the state rather than rely solely on private companies. In recent years, the country has established itself as a leading Bitcoin mining hub in Africa, thanks to the low cost and stability of electricity generation from the Grand Ethiopian Renaissance Dam (GERD) and other hydroelectric projects.
Africa at the Forefront of Crypto Mining
Currently, the country hosts 25 licensed mining companies, controlling around 2.5% of the global Bitcoin hash rate. These private operations have generated over $200 million in revenue, highlighting the economic significance of mining activity in the country.
The state strategy is aligned with the “Digital Ethiopia 2030” plan, which seeks to leverage technology to drive economic growth. Beyond Bitcoin mining, the plan includes blockchain applications, digital payments, and modern data systems. The government aims to retain more value domestically, use surplus energy efficiently, and build local technical expertise.
Ethiopian Electric Power (EEP) currently operates 20 power plants with a combined capacity exceeding 7,900 megawatts and exports electricity to Kenya and Djibouti. In 2024, EEP exported about 7% of generated power, earning $338 million in foreign currency and $55 million in Bitcoin mining revenue over 10 months, mainly through agreements with 25 mining companies.
Ethiopia Aims to Double Mining Capacity by 2027
State-backed mining in Ethiopia is one of several projects across Africa, where countries such as Kenya, South Africa, and Nigeria use hydro, solar, or methane energy to operate Bitcoin mining rigs. Foreign investor participation has increased, including $2 million contributions from Block and Stillmark to Gridless Compute in Kenya.
If realized, Ethiopia’s state mining project could double the country’s mining capacity by 2027 and serve as a model for other nations seeking to turn energy resources into economic growth through the digital economy
