In Ethiopia, due to the available hydropower, there has been an increase in the number of bitcoin miners from China, which is the result of the ban on mining cryptocurrencies in China, introduced in 2021 by Beijing. Ethiopia has close economic relations with China, attracting investments from this country in various sectors of its economy. These are mainly investments in green energy, including the construction of hydroelectric power plants such as the Grand Ethiopian Renaissance Dam (GERD), funded by Chinese investors.

Electricity providers in Ethiopia have already signed 21 contracts with miners, mainly from China. For miners, access to inexpensive energy is becoming a key factor, given that electricity accounts for about 80% of the transaction costs in bitcoin mining. Currently, the cost of a kWh for miners in Ethiopia is 3.14 cents, and with the potential increase in energy production thanks to GERD, it may decrease further.

The Ethiopian government is still considering the issue of bitcoin mining, issuing permits based on design work. However, a directive has been adopted regulating cryptocurrencies and mining. Among the companies actively developing mining in Ethiopia, we can single out BitCluster and BWP, which work with data centers with a capacity of approximately 120 MW each.