Is crypto mining legal in Ethiopia?

Ethiopia crypto mining is legal for licensed companies, and the country became a notable mining hub in 2024 thanks to cheap hydropower. As of November 2026, though, the state has turned cautious. New licences are suspended, the power utility has said it will not sign new mining contracts, and electricity prices for miners are climbing in planned steps. How this fits with Ethiopia's ban on crypto payments is explained in is crypto legal in Ethiopia.

Is bitcoin mining legal in Ethiopia?

Yes, for licensed firms. According to an April 2025 review by Ethiopian lawyers published on Afriwise, the government has licensed foreign and local bitcoin miners since 2022. Mining is classed as a data centre and cloud services investment. Foreign miners set up a local subsidiary or branch, get an investment permit from the Ethiopian Investment Commission and need minimum capital of $200,000, or $150,000 with a local partner.

The national cyber agency, INSA, has registered people and companies involved in crypto, including miners, since August 2022, and it controls imports of mining hardware. The review notes the licensing process has changed often. Mining income is taxed under general income tax law, as covered in how crypto is taxed in Ethiopia.

How does Ethiopian Electric Power bitcoin mining work?

Miners sign power purchase agreements with EEP, the state bulk power seller. The Afriwise review says these usually run four years, with the price fixed in the first year and open to revision after that. Miners pay in foreign currency, which is the main reason the government welcomed them.

The industry grew fast. The Reporter said more than 21 firms had signed agreements with EEP, 19 of them foreign-owned, and that mining earned EEP $220 million in foreign exchange in its last fiscal year. EEP's own outlook warned miners could use a third of national power output in 2025, while more than 40% of people lack reliable electricity.

In August 2025 EEP's chief executive said there would be no new data mining contracts and that existing ones were not expected to continue, CoinGeek and The Reporter reported. The Reporter added that new crypto licences had already been suspended.

What is Ethiopia's mining electricity tariff?

Miners long paid a flat 3.14 US cents per kWh. Addis Fortune reported that EEP moved them to time-of-use pricing from December 1, 2025, in three phases:

• December 2025 to July 7, 2026. Average 4.0 cents, from 3.5 cents off-peak to 6.0 cents at peak.
• July 8, 2026 to July 7, 2027. Average 5.0 cents.
• July 2027 to July 2028. Average 6.5 cents.

The rates include 15% VAT and a regulatory fee, and they drop when EEP delivers less power than promised. Shega reported that miners warned the plan could wipe out most operations by 2027. For how power cost drives mining, see how bitcoin mining profitability is calculated, and for a similar squeeze elsewhere, is crypto mining legal in Kazakhstan.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.