Benefit of Crypto Mining: The Case of Ethiopia

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Date

2025-09

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Publisher

Addis Ababa University

Abstract

This study examines the potential benefits of cryptocurrency mining in the context of Ethiopia. Using an exploratory research design and a qualitative approach, the study focused on the experiences and economic contributions of all foreign companies officially registered for crypto mining in the country. Both primary and secondary data were collected through semi-structured interviews and document analysis. The research was conducted throughout 2024, following the official launch of crypto mining operations in Ethiopia. Data were analyzed using content narrative methods to capture the emerging themes and lived experiences of company representatives. The findings revealed that crypto mining has begun to play a significant role in the Ethiopian economy by attracting foreign direct investment, creating job opportunities, and stimulating infrastructure development, particularly in the energy and digital sectors. Several companies reported efficient use of surplus hydroelectric power, while others highlighted challenges such as policy uncertainty, internet connectivity issues, and logistical constraints. Overall, the study concluded that while crypto mining in Ethiopia is still in its early stages, it holds considerable potential to contribute to national development goals if supported by clear regulations, public private collaboration, and sustainable energy practices.

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Keywords

Bitcoin, Cryptocurrency, Crypto mining

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