Ethiopia Energy Intensive Tech opportunities
Ethiopia is fast becoming a global hub for data-intensive technologies like bitcoin mining, data mining, and data centers.
Ethiopia is particularly attractive to miners of bitcoin and other cryptocurrencies. The country’s power grid is almost entirely sourced from clean, renewable energy, and its electricity rates are among the lowest in the world. Moreover, Ethiopia plans to more than double its power generation capacity in the next decade.
The Government of Ethiopia (GOE) has been welcoming to foreign bitcoin mining companies. More than 20 firms have been granted operating licenses to date, and several dozen more are working through the registration process. There are three main GOE bodies that U.S. companies interested in cryptocurrency mining must work alongside. These are the Information Network Security Administration (INSA), an agency responsible for protecting the national interest of the country through controlling anything in the information technology area; Ethiopian Electric Power (EEP), an agency responsible for all generation, transmission, and bulk power sales; and the Ethiopian Investment Commission (EIC), which provides licenses for investment activities.
Prior to starting operations, cryptocurrency mining companies must get permission from INSA for the importation of specialized computer hardware, sign a power purchase agreement with EEP, and acquire an investment license from EIC.
Beyond cryptocurrency and data mining, Ethiopia is also an attractive market for data centers. Ethiopia’s recently enacted Personal Data Protection Proclamation includes a data localization component that requires all data created in Ethiopia to be stored within the country’s borders. This law will generate significant demand for data center services in the years ahead. Several data centers have recently come online, mostly clustered in Addis
Ababa’s ICT industrial park, which provides centralized government services for tenants. With the country’s commitment to adopting e-government services and promoting e-commerce and digital payments as part of its Digital Transformation Strategy, the demand for data storage services will continue to grow in the years ahead.
Ethiopia’s low-cost, clean electricity, planned digital transformation, and mandated data localization create opportunities for energy-intensive data mining and storage operations.
U.S. companies, including energy sector and information technology firms, have a strong worldwide reputation for their innovative technologies, quality products and services, and after-sale service, making them competitive in the Ethiopian market.
U.S. companies interested in learning more should contact: Yemesrach Kassu, Commercial Specialist, Email: Yemesrach.Kassu@trade.gov