Ethiopia Announces State-Backed Bitcoin Mining with Renewable Energy

Highlights:

• Ethiopia has invited global partners for its state-run Bitcoin mining venture.
• Over 25 licensed miners already operate in the country.
• Bitcoin mining supports Ethiopia’s Digital Ethiopia 2030 vision.

Ethiopia is preparing to launch a government-led Bitcoin mining facility and now seeks foreign investment partners. This announcement came during the Finance Forward Ethiopia 2026 conference, where Prime Minister Abiy Ahmed outlined a national strategy involving digital assets.

This is aimed at increasing digital revenue while enhancing economic resilience using clean energy-powered mining activities. This initiative will be spearheaded by Ethiopian Investment Holdings (EIH), which is the country’s sovereign wealth fund.

Bitcoin Mining Will be Powered by Clean Energy

The Prime Minister said that Ethiopia will tap into its vast renewable energy reserves to power Bitcoin mining activities. This includes the Grand Ethiopian Renaissance Dam (GERD), which is one of the largest hydropower projects in Africa. These plants provide low-cost and stable power, making the country a favorable destination to conduct operations of digital assets. Because of these reasons, Ethiopia has already turned into the best Bitcoin mining hub in Africa.

JUST IN: 🇪🇹 Prime Minister of Ethiopia says they are looking for an investment partner to mine #Bitcoin

The race is on 🚀

pic.twitter.com/nSyjcZNnsU

— Bitcoin Magazine (@BitcoinMagazine) January 19, 2026

EIH will operate the state-run operations and is currently seeking experienced mining partners to provide capital and technology. Officials stressed that foreign companies that have the necessary expertise will be key to the initiation of this project.

According to government leaders, this strategy will retain more economic value within the country. Moreover, the mining revenues will be directly channeled into national development plans and not just private entities. The current push is a shift away from allowing individual miners towards a strategy where the government plays an active role. This makes Ethiopia one of the few countries to incorporate Bitcoin mining into state development.

Licensed Firms Already Contribute 2.5% of Global Hash Rate

The introduction of mining in Ethiopia is not new. In recent years, it has quietly licensed over 25 mining companies. These miners currently contribute to about 2.5% of Bitcoin’s global hash rate. This represents a sizeable portion of mining operations by a single African nation. The industry has already generated more than $200 million in revenue, which underscores its economic worth.

The country, however, had previously suspended new mining licenses due to the potential burden on its electric grid. Despite this, there is a high level of interest. Phoenix Group, a UAE-based company, has collaborated with the national power utility, Ethiopian Electric Power (EEP), to construct a mining data center. This shows how international players have already considered Ethiopia as a strategic destination.

Phoenix Group (@phoenixgroupuae), in partnership with Ethiopian Electric Power, Ethiopia's state-owned electric power producer, has announced the 30MW hydropower-backed #mining facility at Bole Lemi Industrial Park in Addis Ababa, #Ethiopia.

The activation represents a key… pic.twitter.com/MpmlDRhQJF

— Entrepreneur Middle East (@EntMagazineME) November 6, 2025

Prime Minister Ahmed now seeks to formalize and expand this activity to a state-backed system. Moreover, he aims to make sure that the government is directly benefiting from the industry it used to oversee from the sidelines.

National Goals Aligned with Long-term Digital Strategy

The mining project supports the overall economic vision of Ethiopia, Digital Ethiopia 2030. This vision encourages the use of blockchain, digital payments, and the use of data systems to expand the economy.

The government now hopes to grow its foreign exchange reserves by utilizing surplus electricity to mine Bitcoin. At the same time, it will introduce new technical roles and develop local expertise in blockchain activities. The mining industry is not merely a source of revenue, according to the officials. They consider it to be a link to modern infrastructure and digital independence.

Moreover, Ethiopia is among a growing number of countries, such as Russia, France, the UAE, Japan, and Bhutan, that support state-level mining. According to VanEck, 13 countries are currently involved in government-sponsored Bitcoin mining projects.