Ethiopia, a country where nearly half the population still lacks access to electricity, is quietly becoming one of the world’s most important Bitcoin mining destinations. The BBC reports that mining activity is increasing across the East African nation, which legalized the practice in 2022 while maintaining a strict ban on cryptocurrency trading.
How Ethiopia became a mining magnet
The story starts with water. Specifically, the Grand Ethiopian Renaissance Dam, one of the largest hydroelectric projects on the African continent. The dam generates enormous amounts of renewable energy, and Ethiopia has been looking for ways to monetize its surplus power.
The country has allocated up to 600 MW of power capacity specifically for mining operations, with approximately 27 companies now engaged in the sector.
Mining companies, particularly those displaced from China after its 2021 crackdown, have been hunting for exactly this kind of low-cost energy haven. Ethiopia rolled out the welcome mat at precisely the right moment.
