Exploring the Controversy: Could Bitcoin Mining Be Depriving the Global Poor of Affordable Power Resources?
In the heart of Africa, Ethiopia is making waves as a potential Bitcoin mining haven. The East African nation, known for its abundant renewable resources and underutilized grids, is exploring digital asset legislation and ways to monetize its infrastructure.
The Ethiopian government sees this deal as an opportunity to monetize surplus electricity and attract foreign investment. In May 2024, Ethiopia signed a deal with Hong Kong-based Data Center Service (HKDC) to grant access to its state-run power grid for Bitcoin mining. This agreement allows HKDC to utilize Ethiopia's vast hydroelectric capacity, particularly from the Grand Ethiopian Renaissance Dam (GERD).
However, the rapid embrace of Bitcoin mining has raised alarms among civil society groups in Ethiopia. Lack of transparency and public consultation in these deals has been a concern. Crypto mining operations, according to a 2023 study by the Global Energy Monitor, tend to prioritize profit over equitable development.
Critics argue that Bitcoin mining could divert power from local communities and industries still struggling with unreliable supply. Over 45% of Ethiopia's population lacks access to electricity, and even in major cities, blackouts are frequent. Ethiopia is home to 57 million people who live without access to electricity, making it the third-largest unserved population in the world.
US-listed Bitcoin mining firm BIT Mining shifted its outdated mining equipment from the United States to Ethiopia in 2025, citing ultra-low electricity costs as a reason for the move. The Ethiopia Electric Power (EEP) has reportedly earned over $200 million from bitcoin miners during the first six months of 2025.
However, since May 2024, there are no publicly available reports or evidence that any companies have been operating Bitcoin mining in Ethiopia or partnering with the Ethiopian government for access to the country's state power grid. Available information instead focuses on gold mining projects by companies like East Africa Metals and Tibet Huayu Mining Co., Ltd., with no mention of Bitcoin mining activities.
As Ethiopia navigates this new frontier, strong governance, transparency, and clear national strategies are needed to harness crypto's economic potential while safeguarding public resources and energy access. An energy policy expert based in Nairobi warns against Africa becoming a dumping ground for global crypto operations seeking cheap energy.
A list of 10 key milestones behind Ethiopia's rise as a Bitcoin mining haven in 2024 is available, marking a significant step in the country's digital transformation. The Ethiopian government has emphasized that crypto mining is only permitted in specific industrial parks and zones where excess energy exists. The government's focus on sustainable and regulated practices is crucial in balancing the economic benefits with social and environmental considerations.
