Ethiopia to phase out crypto mining by 2025 to prioritize energy security

Generated by AI AgentCoin World
Saturday, Aug 9, 2025 2:13 pm ET1min read
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Aime RobotAime Summary

- Ethiopia plans to phase out crypto mining by 2025, prioritizing energy security over energy-intensive operations.

- State-owned EEP will terminate mining permits and redirect energy toward rural electrification and public infrastructure.

- Crypto mining already consumes 27% of national grid capacity, prompting policy shifts to address sustainability and equity concerns.

- The move aligns with global trends seen in China and Kazakhstan, emphasizing energy governance over high-return crypto activities.

- Ethiopia’s strategy aims to stabilize energy access while influencing regional regulatory approaches across Africa.

Ethiopia has announced a definitive plan to phase out all cryptocurrency mining operations by 2025, as outlined in the Ethiopian Energy Outlook 2025. The state-owned Ethiopian Electric Power (EEP) will progressively terminate existing mining activities and stop issuing new electricity supply agreements for crypto operations. The decision underscores the government’s increasing focus on domestic energy needs over the energy-intensive crypto industry [1].

The phase-out includes

Bitcoin
and
Ethereum
mining, with a particular emphasis on operations that utilize Ethiopia’s energy resources. EEP estimates that mining activities could account for nearly one-third of the country’s total electricity demand by 2025, prompting urgent policy adjustments to redirect energy toward public infrastructure and rural electrification [2]. Public advocacy has supported the decision, noting that crypto mining already consumes approximately 27% of the
national grid
, raising concerns about energy sustainability and equitable distribution [6].

This move aligns with broader energy reforms and follows a prior suspension of new power permits for crypto mining. While the sector contributed significant revenue—estimated at $200 million for the first half of 2025—the government has emphasized that energy security and social equity must take precedence over high-return but high-consumption activities [4]. The freeze on new permits is also seen as a regulatory tightening to address illegal operations and enhance energy governance [8].

Historical comparisons have drawn attention to similar actions in countries like China and Kazakhstan, where restrictions on crypto mining were imposed to prioritize essential sectors [2]. Ethiopia’s approach reflects a growing trend among energy-constrained nations to eliminate energy-intensive industries in favor of broader economic and social development. The phased exit aims to stabilize the energy sector and bridge the energy access gap, particularly in rural areas [10].

The decision is expected to reshape Ethiopia’s digital economy and could influence similar regulatory approaches across the African continent. The government has stressed that the move is crucial to protecting national electrification goals and ensuring sustainable energy utilization [5]. With a clear policy shift, Ethiopia is redefining its energy and economic strategy, balancing short-term revenue with long-term development priorities.

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Source:

[1] Ethiopian Energy Outlook 2025 (https://www.mitrade.com/insights/news/live-news/article-3-1026369-20250809)

[2] Addis Insight (https://www.addisinsight.net/2025/08/08/ethiopia-halts-new-crypto-mining-power-deals-to-prioritize-domestic-energy-needs/)

[4] CNBC Africa (https://www.cnbcafrica.com/media/7754639731309/balancing-bitcoin-mining-revenues-with-ethiopias-energy-access-gap/)

[5] Facebook Group Post (https://www.facebook.com/groups/1062463014126424/posts/2460891624283549/)

[6] X (Twitter) Post (https://x.com/iyoba4u/status/1953802397270049181)

[8] BitKE (https://bitcoinke.io/2025/08/ethiopia-halts-crypto-mining-power-permits/)