Ethiopia's Crypto Mining Boom Worsens Power Problems
Date: 2025-06-30 Author: Gabriel Deangelo Categories: IN WORLD
In recent years, Ethiopia has seen a sharp increase in energy consumption due to the rapid growth of mining farms. According to a forecast prepared by the country's Petroleum and Energy Authority, miners will consume more than eight terawatt-hours of electricity in 2025 alone. To put this into perspective, this is about a third of the country's total consumption. Such a burden raises questions about how justified such a large-scale use of resources is in a country where access to a stable power supply is still an issue.
The mining industry has rapidly developed since 2022, when the National Bank of Ethiopia imposed a ban on cryptocurrency trading. Despite this, the authorities saw the mining of digital assets as a source of foreign exchange inflow and an opportunity to stimulate the digitalization of the economy. However, the rapid growth of mining centers has led to a severe shortage of electricity, which has led to debate about the feasibility of such projects.
Ethiopia has been declaring ambitious plans to develop infrastructure and improve energy supply in recent years. However, real progress remains modest: almost half of the country's population still lacks access to reliable electricity. Only about 22% of households use electricity legally through installed meters. About 15 million families are still waiting to be connected to the power grid.
Against this background, the huge amounts of energy consumed by crypto miners are becoming the subject of sharp criticism from experts and the public. In their opinion, the authorities should reconsider priorities and direct resources to expanding access to basic services for citizens, rather than supporting energy-intensive industries that do not directly improve the standard of living.
At the same time, proponents of mining insist that cryptocurrency mining can help Ethiopia increase foreign exchange reserves and modernize infrastructure due to the influx of investment. The only question is how compatible this strategy is with the real needs of the millions of people who still remain without power. In the coming years, the authorities will have to find a balance between the interests of business and the need to provide for the basic needs of the population.
