Ethiopian authorities halt cryptocurrency mining in the country
State-owned Ethiopian Electric Power (EEP) has announced plans to cease all cryptocurrency mining operations in Ethiopia.
Among the main reasons for the company’s closure is growing public discontent with the increase in energy consumption in the country after the start of data centers. It even caused unrest among Ethiopians. And although the government is also interested in attracting foreign investment in the mining sector, concerns about the growing demand for electricity forced the leadership of the Ethiopian People’s Revolutionary Party to reconsider its position.
The recently published Ethiopian Energy Outlook 2025 report stated that this year mining cryptocurrency will consume about a third of all electricity generated in Ethiopia. The report stresses that such consumption levels could negatively impact critical industries, especially in regions that still suffer from power outages and dependence on diesel fuel.
Despite the fact that mining cryptocurrency seen as a way to earn foreign currency, the report noted that Ethiopia lacks an efficient electricity supply system.
With the supply and demand imbalanced, the question remains whether electricity can be used for export, universal electrification or other productive purposes such as pumping water in the water and agricultural sectors, where diesel generators are widely used, the report says.
This is why the authorities have decided to suspend all mining operations in the country.
Domestic consumers and strategic industries will always be our priority, he said. CEO of EEP Ashebera Balchi.
