Cryptocurrency Update: Ethiopia Stops Issuing Power Grants for Crypto Mining due to Grid Capacity Limit Reach
In the heart of Africa, Ethiopia continues to grapple with one of the world's largest unelectrified populations, as millions of its citizens live without access to electricity. This stark reality has sparked a heated debate among analysts, who question the ethics of allocating scarce energy resources towards digital mining, while so many are left in the dark.
The African Bitcoin space is not without resources for those who wish to stay informed. A plethora of platforms, including websites, WhatsApp channels, Telegram communities, and more, provide updates on the burgeoning Bitcoin scene in Ethiopia.
Recent editorial discussions have focused on whether Bitcoin mining is, in fact, robbing the world's poor of cheap electricity. This debate has taken centre stage as Ethiopia positions itself as a Bitcoin mining haven, with the nearing inauguration of the Grand Ethiopian Renaissance Dam (GERD) set to add over 5,000 MW to the grid.
The Ethiopian Electric Power (EEP) manages generation and transmission through 20 power plants, producing over 7,900 MW. However, the rapid expansion of crypto-mining in the country has raised concerns, with local energy analysts in Addis Ababa stating, "It's hard to explain to people living in the dark why energy is being used to mine Bitcoin."
Despite the controversy, the EEP has reported significant financial gains from Bitcoin mining. The company earned $200 million from Bitcoin mining operations in the first half of 2025, marking a substantial increase from previous years. This revenue jump, which accounted for about 7% of total generated electricity, saw a nearly 141% year-on-year increase.
However, not all is rosy for the Ethiopian government. Critics from civil society and the media have expressed concerns about the unchecked expansion of crypto-mining, fearing it could deepen energy inequities. In response, the Ethiopian government has taken steps to address these concerns, with the EEP suspending the issuance of new electricity supply permits to crypto-mining companies.
Currently, there are 25 crypto-mining companies operating in Ethiopia, with nearly 20 more on the waiting list. Despite the government's stance, the expansion of crypto-mining could potentially benefit foreign stakeholders disproportionately.
The country's energy exports have also seen a significant increase, with Ethiopia currently exporting 200 megawatts to Kenya and having received requests for another 100 MW. However, the balance between lucrative energy exports and the imperative of local energy access remains a topic of ongoing debate.
Amidst this controversy, the Ethiopian government has generated $55 million from Bitcoin mining operations over the past 10 months, according to a recent report. This figure, while significant, pales in comparison to the potential benefits that could be reaped if the energy challenges are adequately addressed.
The rise of Ethiopia as a Bitcoin mining haven in 2024 can be traced back to a list of 10 key milestones. As the debate continues, it is crucial to remember that at the heart of this issue are the millions of Ethiopians still living without electricity. The challenge lies in striking a balance between economic growth and social responsibility.
