In Ethiopia, 40% of the population still doesn’t have access to electricity, contributing to high unemployment, particularly among young adults. Without proper technological skills and access to electricity, people are less likely to find jobs. Nearly 4% of the country’s population is unemployed across both rural and urban areas. Ethiopia’s new initiative, Project Mano, aims to address these challenges by utilizing Bitcoin. The project focuses on Bitcoin mining facilities and substations to strengthen the country’s economy.

Project Mano

Project Mano aims to integrate intensive bitcoin mining into Ethiopia’s economy, powered by the country’s renewable energy resources, including the Grand Ethiopian Renaissance Dam (GERD), the largest dam in Africa. Led by the Russian bitcoin mining company Bitcluster, the project will support Ethiopia’s environmental goals of clean energy while also boosting technological infrastructure and growing the nation’s economy. If GERD is repurposed for bitcoin mining, it could generate billions of dollars annually for Ethiopia. At full capacity, the dam could power 200,000 similar machines, potentially yielding more than $2 billion per year.

Project Mano will establish a mining facility in Addis Ababa, strategically located near the GERD. Ethiopia’s climate is also a significant advantage for the facility’s construction. With temperatures ranging from 9°C to 24°C throughout the year, the country provides ideal conditions for bitcoin mining, as facilities are less likely to overheat or freeze. Additionally, Addis Ababa’s Bole International Airport, the largest on the continent, offers direct flights to most global capitals, making it a key transport hub and helping reduce the cost of importing equipment and materials.

The Benefits

Project Mano will offer significant benefits to Ethiopia’s population in the fight against poverty. Inflation remains high and the crises in Ukraine and Gaza have increased pressure on import prices. With 55% of the population unbanked, money circulation is limited, forcing the government to print more money and worsening inflation. One of Project Mano’s initiatives is to adopt Bitcoin as legal tender, allowing it to be used for purchases, employee salaries and taxes. Since bitcoin maintains its value, this could help reduce poverty by stabilizing Ethiopia’s economy and promoting fiscal security.

Furthermore, using the GERD for bitcoin mining will provide 24/7 electricity access, helping Ethiopia combat poverty. The “electrification” of rural areas will lead to the establishment of bitcoin mining substations, allowing remote communities to gain access to electricity while creating new tech-related job opportunities. This increase in employment will boost Ethiopia’s economy and significantly reduce the number of people struggling with food poverty.

Summary

Project Mano proposes bitcoin mining as a solution for securing a stable economy. It plans to establish a facility in Addis Ababa powered by Africa’s largest hydroelectric project and other renewable energy sources. The project aligns with Ethiopia’s renewable energy goals while having the potential to generate billions of dollars for the economy. By expanding technological infrastructure, bitcoin mining will create more employment opportunities, address the high unemployment rate among young adults and help alleviate food poverty. Additionally, the Bitcoin facilities present significant opportunities for foreign investment and access to foreign currency, improving the quality of life for average Ethiopians and stabilizing the economy on a larger scale.

– Chelsey Saya McLeod

Chelsey is based in Southampton, Hampshire, UK and focuses on Good News, Technology and Solutions for The Borgen Project.

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