2024 was a pivotal year for Ethiopia as it generated around $1 billion in BTC mining profits due to its access to cheap, reliable, and renewable energy sources.
Africa is a region producing fintech unicorns that provide the highly unbanked (and equally highly “smartphonized”) population and merchants with payment solutions. Companies like TymeBank, Moniepoint, and Opay have made hundreds of millions of dollars by creating and maintaining payment mobile apps and ground touchpoints. In conditions where banks are absent—80% of Africans don’t have bank cards—digital money solutions are filling the void, and cryptocurrency is one of the factors shaping the modern-day financial reality of the continent.
Ethiopia entered the global BTC mining top
According to Intellinews, in 2023, only 35% of Ethiopians had bank accounts. However, this did not block the country from becoming one of the world’s leaders in Bitcoin mining. In 2024, Ethiopia became the first African country with a high-scale state-backed crypto mining operation. Its revenue is expected to reach up to $5.4 billion in 2027.
The backbone of Ethiopia’s success in the sector is the Grand Ethiopian Renaissance Dam, a gravity dam constructed on the Blue Nile River by 2024. The GERD is one of the 20 largest hydroelectric power plants in the world and the biggest one in Africa. It provides electricity to the entire country and produces enough for export to other nations.
Bitcoin critics have often emphasized the excessive energy consumption of the network, noting that many mining operations are based in countries with cheap electricity that rely on dirty fossil fuels. Ethiopia, however, mines bitcoins using cheap and clean energy from the GERD. Interestingly, only half of the Ethiopian population has access to electricity. This means a significant portion of the spare energy can be invested in mining.
In 2024, Ethiopia generated $1 billion through Bitcoin mining. The profits made by mining help maintain the GERD infrastructure. According to Happy Coin News, the mining operation accounted for 18% of the country’s annual national income.
In October, Luxor Mining COO Ethan Vera named the key components of Ethiopia’s success in the sector. These include cheap electricity and the use of mid-generation mining devices that consume less power and cost less than newer machines. The main models used in Ethiopia, according to Vera, are Bitmain’s S19J Pro and A1346 by Canaan.
The Ethiopian blueprint
In 2024, Ethiopia contributed 2.25% of the global hash power in Bitcoin mining. According to Luxor Mining, Ethiopia is the next biggest hash power contributor after the USA, Hong Kong, and Asia.
The success of Ethiopia demonstrates that governments can use cryptocurrency to finance infrastructure development and lift local economies. Ethiopia emerged as a Bitcoin mining leader without compromising environmental sustainability. Notably, green mining requires easy access to clean energy while profits are reinvested in the dam’s development, representing a win-win scenario.
While Ethiopia was building its mining powerhouse, other countries took note. The Democratic Republic of Congo, for example, is set to build its own clean mining operation in Virunga National Park. Meanwhile, smaller players in other countries are developing local grids to support grassroots mining operations. Initiatives like Gridless and Trojan Mining are also advancing eco-friendly Bitcoin mining efforts in Africa.
Ethiopia is paving the way for other African countries to capitalize on renewable energy sources to build Bitcoin mining operations. Similar efforts across the continent could inject vitality into local economies, amplify the ongoing fintech revolution, and open new opportunities for African nations.
