11.08.2025 11:06

Ethiopia has implemented a moratorium on issuing new electricity permits to data mining companies. This effectively halts the growth of cryptocurrency mining operations within the country, primarily due to existing limitations in the national power grid's capacity. The move comes in response to a significant increase in interest from cryptocurrency mining businesses.


Currently, twenty-five bitcoin mining firms are already operational in Ethiopia, while close to twenty others are pending approval. These companies were attracted by Ethiopia's competitively low electricity tariffs and its substantial hydropower resources. The Ethiopian Electric Power (EEP) had previously actively promoted power sales to this burgeoning sector.


This decision to freeze new permits highlights the challenges faced by Ethiopia in balancing economic development opportunities with the need to ensure sufficient and stable electricity supply for its citizens. The country's limited grid capacity, coupled with the high energy consumption of cryptocurrency mining, necessitates this temporary halt to further expansion in the sector. The government is likely evaluating the long-term implications of cryptocurrency mining and its impact on the national power grid before considering future permits. The situation underscores the complex interplay between technological advancements, economic incentives, and infrastructural limitations in developing nations.