Ethiopia is halting new electric power permits for data mining companies, effectively freezing the expansion of crypto-mining operations due to limited capacity. The decision follows a surge in interest, with 25 bitcoin mining firms already operating in the country and nearly 20 more awaiting approval, drawn by Ethiopia’s cheap tariffs and abundant hydropower.
During the past several years, the Abiy Ahmed regime had marketed power sales to crypto miners—paid in foreign currency—as a way to bolster foreign exchange earnings and alleviate a chronic foreign exchange shortage. However, experts warn actual consumption by crypto miners may be higher than reported, potentially adversely affecting local access.
Reports indicate that crypto miners contributed to Ethiopia’s $338 million in power export revenue last year, a 141% increase. Despite operating 20 power stations and exporting electricity to neighbors Kenya and Djibouti, only about half of Ethiopians have access to electricity.
Change of Policy?
On August 7, 2025, state-owned Ethiopian Electric Power (EEP) announced intentions to gradually phase-out all cryptocurrency mining operations amid public pressure over the growing energy burden posed by crypto-related data centers.
Crypto mining outfits began flocking to Ethiopia over the past several years, attracted by low energy tariffs and a government eager to accommodate foreign investment. However, concerns over their astronomical energy needs have led EEP to reconsider its engagement, says to the Chief Executive Officer of EEP.
The recently published Ethiopian Energy Outlook 2025 report revealed that crypto currency mining is on track to consume a third of Ethiopia’s total power output this year. It warned this level of consumption could compromise essential sectors, particularly in rural areas still struggling with electric outages.
Ethiopian Policy Institute 