Africa’s largest dam becomes a strategic hub for Bitcoin mining, attracting international investments and opening new economic prospects for the continent.
Ethiopia is converting surplus energy from the Grand Ethiopian Renaissance Dam (GERD) into a source of wealth through Bitcoin mining. According to data reported by The Africa Report, this activity is generating 18% of national revenue.
Hiwot Eshetu, Marketing and Business Development Director at Ethiopian Electric Power (EEP), stated:
“Bitcoin miners have a lot of money to invest, and we need lots of money to develop our grid, so it’s a win-win.”
Over the past year, mining investments exceeding $1 billion have surpassed profits from energy exports to neighboring countries.
Ethiopia has already signed agreements with 25 mining companies, generating over $55 million in revenue in the last ten months. This success is also attributable to the country’s extremely competitive electricity rates, at around 3.2 cents per kilowatt-hour, among the lowest worldwide.
A new global mining hub
Ethiopia’s mining landscape underwent a significant transformation after China’s 2021 ban. Companies like BitFuFu and BIT Mining found fertile ground for their operations in the African country. An example is BIT Mining’s acquisition of a 51 MW facility with 17,869 machines for mining, representing a $14.3 million investment.
Currently, mining operations in Ethiopia consume approximately 600 MW of energy, with growth prospects that could lead the country to control up to 7% of global hash rate.
