Ethiopian authorities are using energy generated by Africa's largest hydroelectric power station, GERD, to mine Bitcoin. The government has already struck 25 deals with mining companies, bringing in more than $55 million in revenue to the country's budget over the past 10 months.
Ethiopia’s electricity tariff is only about 3,2 cents per kilowatt-hour. Such low costs make the country attractive to miners, especially those from China. After Beijing banned cryptocurrency mining in 2021, local firms moved to other jurisdictions.
The largest investments in Ethiopia's mining industry were made by BitFuFu and BIT, sponsored by Chinese cryptocurrency mining equipment manufacturer Bitmain. This put Ethiopia among the countries with the highest levels of Bitcoin mining, a list that also includes the Czech Republic, China, and the United States.
Other African countries are actively using renewable energy-based cryptocurrency mining for environmental and social initiatives. For example, in Kenya and Zambia, mining companies provide electricity to rural areas. In the Democratic Republic of Congo, the industry funds programs in the Virunga National Park.
However, not all authorities in the region are positive about cryptocurrency mining. In February 2024, the Angolan government passed a law banning digital asset mining in order to reduce the burden on the country's energy grid.
