In 2024, Ethiopia emerged as a significant player in the global Bitcoin mining industry, generating approximately $1 billion in profits. The country’s success in cryptocurrency mining stems from its access to affordable, reliable, and renewable energy sources, particularly from the Grand Ethiopian Renaissance Dam (GERD). This hydroelectric plant, among the top 20 globally and the largest in Africa, powered Ethiopia’s state-backed crypto mining initiative, allowing the country to produce about 2.25% of the global hash power in Bitcoin mining.
Despite only 35% of Ethiopians having bank accounts in 2023, the fintech landscape across Africa is evolving rapidly with innovative solutions targeting the largely unbanked population. Companies like TymeBank, Moniepoint, and Opay have crafted digital and physical banking touchpoints, capitalizing on Africa’s widespread smartphone usage.
The GERD not only supports the national power grid but also exports electricity to other nations, positioning Ethiopia as a model for environmentally sustainable Bitcoin mining. The nation’s reliance on cheap, clean energy counters critiques of Bitcoin mining’s environmental impact. The mining ventures, which accounted for 18% of Ethiopia’s national income in 2024, bolster the dam’s infrastructure, demonstrating a synergy between economic growth and ecological responsibility.
Ethiopia’s template of leveraging green energy for cryptocurrency mining is being noted by other nations. The Democratic Republic of Congo intends to launch a clean mining operation in Virunga National Park, while initiatives like Gridless and Trojan Mining are fostering grassroots, eco-friendly Bitcoin mining activities across the continent. These efforts promise to invigorate local economies, further the fintech revolution, and provide new opportunities for economic development across Africa.
