The Ethiopian government, led by Prime Minister Abiy Ahmed, has announced a major strategic shift by planning to launch a state-backed Bitcoin mining venture. The announcement was made during the Finance Forward Ethiopia 2026 conference, where officials confirmed the country is actively seeking a global investment partner to provide capital, technology, and mining expertise.
The initiative will be coordinated through Ethiopian Investment Holdings, the nation's sovereign wealth fund, signaling a long-term strategic intent. Prime Minister Abiy Ahmed stated the goal is to earn revenue directly for the country, moving beyond reliance on private mining companies. This positions Bitcoin mining not as a private-sector activity but as a national economic opportunity.
Ethiopia's pivot is driven by its abundant and cheap renewable energy, primarily from the Grand Ethiopian Renaissance Dam, which has already made it Africa's leading Bitcoin mining hub. The country currently hosts 25 licensed Bitcoin mining firms, which collectively control approximately 2.5% of the global Bitcoin hash rate and have generated over $200 million in revenue.
The state mining plan is a core component of Ethiopia's "Digital Ethiopia 2030" strategy, which aims to use technology for long-term economic growth. The strategy includes wider blockchain adoption, digital payments, and modern data systems. The government views Bitcoin mining as a way to monetize excess power, build local technical skills, and strengthen the nation's digital future.
This move represents a significant policy evolution. After an initial wave of foreign miners strained the power grid last year, leading to a pause on new licenses, the government has shifted from cautious regulation to strategic adoption. The new model aims for direct government participation to capture more value and manage infrastructure risks.
Ethiopia now joins a growing global trend of sovereign involvement in Bitcoin mining, following nations like Bhutan, El Salvador, and the United Arab Emirates. The initiative is framed not as a short-term profit scheme but as a mechanism to link renewable energy, digital infrastructure, and financial inclusion into a single national development framework.
