Dear Ministers and Directors,
We write to you on behalf of Project Mano, an Ethiopian-led Bitcoin-focused nonprofit initiative. We respectfully submit this detailed proposal to underscore why Ethiopia must urgently embrace state-powered Bitcoin mining and establish its own national Bitcoin reserve. We also respectfully submit this thorough proposal to address Ethiopia’s persistent trade deficit, surging inflation, and chronic foreign currency shortages through state-operated Bitcoin mining and the creation of a national Bitcoin reserve.
Over the past few years, Ethiopia’s chronic foreign currency shortages, spiraling trade deficit, and rising inflation have only worsened. Meanwhile, we have witnessed foreign-owned Bitcoin miners quietly benefiting from our cheap, renewable electricity—generating immense private profits, yet leaving Ethiopia with a meager trickle of foreign currency. We have calculations that show Ethiopia itself has an unparalleled opportunity to harness its abundant hydroelectric capacity for mining Bitcoin directly. Such a move can drastically bolster our foreign currency reserves, stabilize the Birr, and mitigate the inflationary pressures that have undermined our purchasing power and contributed to social unrest. Since Project Mano started publicly advocating in 2019, the ETB is sliding from roughly 25 ETB per USD in 2019 to over 139 ETB per USD officially in early 2025. The black market rate, by many estimates, is far higher and accelerating still. Despite Ethiopia’s reported GDP growth rates (often cited at around 7% annually), our purchasing power is outpaced by the 10%–20% annual inflation of global reserve currencies such as the U.S. dollar. In other words: we are not even breaking even.
Below is our concise, data-driven case for why the Ethiopian government should seize the opportunity to mine Bitcoin directly—rather than selling our cheap renewable power to foreign crypto miners—and reinvest a meaningful portion of that mining revenue into a national Bitcoin reserve.
1. The Necessity of Hard Money and the Bitcoin Opportunity
Inflation and Global Currency Pressures
Much like other nations, Ethiopia depends heavily on the FX (such as U.S. dollar, bonds, and treasuries) for international trade, yet these instruments are no longer backed by any finite asset. Historically, repeated and more recent expansions of the U.S. money supply have devalued the dollar’s purchasing power—undermining countries (like ours) that maintain large USD-denominated reserves. The Federal Reserve—and many other central banks—can and do expand the money supply essentially at will, eroding the purchasing power of any country (like Ethiopia) that relies on holding large sums of foreign fiat currency and foreign treasuries. We see the consequences every day.
Ethiopia’s USD-denominated holdings (both currency and bonds) lose real value each year—various reputable studies and estimates place the effective true dollar inflation (not CPI) rate between 7% and 10% annually. For Ethiopia, this puts us in a vulnerable position. Our nation invests significant energy into exporting goods simply to acquire more USD, which is then diluted with sovereign interests. Worse still, we also grapple with our own domestic inflation, spurred by internal conflicts, global pressures, and a fragile local currency that is steadily losing value.
Holding Ethiopian reserves in an asset like Bitcoin—whose supply is strictly capped at 21 million coins—will offset the global inflation erosion and protect the Birr from further depreciation. The USD inflation is just an addition to the ETB inflation that is caused by recent internal conflicts and wars.
Historical Outperformance
Over its lifespan, Bitcoin has gained an average of +120% per year. Even after volatility and cyclical downturns, it continues to outperform gold and most other commodities.
We first urged the government to consider a Bitcoin reserve in 2019 in an Open Letter to Abiy Ahmed, when BTC was USD 17,000. Today, it surpasses USD 106,000—illustrating the magnitude of missed opportunity. With exchange data revealing that the amount of Bitcoin on trading platforms is steadily declining, the window to acquire BTC at more moderate prices is closing as there are truly finite amounts of these coins.
2. Ethiopia’s Unique Advantage: State-Powered Mining
2.1 Abundant Renewable Energy Opportunity
Bitcoin mining is a global process of securing the network and earning BTC rewards. Profitability depends on low-cost electricity and efficient hardware. With hydropower generation costs often well below USD 0.02/kWh, Ethiopia is ideally positioned to become a major mining powerhouse, likely being the most advantaged country with such an advantage.
A conservative projection shows that a 33 MW facility (e.g., ~10,000 ASIC miners) can yield around 2,100 BTC per year, worth hundreds of millions of dollars at today’s prices. Scaling to 600 MW (currently sold cheaply to foreign companies) could theoretically generate tens of thousands of BTC annually, translating into USD 2–3+ billion. This figure dwarfs the USD 50–55 million we currently earn by selling that power to foreign miners. The capital outlay for the hardware itself is far less than the billions often quoted for constructing new export-focused transmission infrastructure. Moreover, the hardware can be incrementally deployed—starting small and scaling up as profits reinvest.
2.2 Replacing Foreign Miners with a State Monopoly or PPP
Currently a handful of foreign mining operators are exploiting our world-class low electricity costs. They pay minimal tariffs, then export nearly all the mined Bitcoin’s value out of Ethiopia. Some have even lobbied policymakers to prohibit local Ethiopians from mining, securing an unfair monopoly and leaving our country with meager revenues.
Project Mano proposes a state-monopolized or public-private partnership approach:
- The government (possibly via Ethiopian Electric Power (EEP) or another state entity) directly acquires mining hardware by selling bonds to the public or local entities.
- Publicly regulated local corporations or PPPs then manage day-to-day operations.
- Foreign partners are welcome only under strict, Ethiopia-centric terms that ensure the majority of profits remain in the country.
We must not continue giving away our “oil”—in this case, cheap hydroelectric energy—to foreign firms for pennies on the dollar.
2.3 Concrete Mining Model
Example: 10,000 Antminer S20 ASIC machines (each ~3.55 kW) would consume about 33.5 MW—less than 5% of GERD’s full capacity. At current global Bitcoin mining difficulty, such a facility could yield ~2,100 BTC per year. Scaling this to utilize 600 MW (the same amount now sold to foreign miners) could generate tens of thousands of BTC annually—worth billions of dollars in foreign currency, far surpassing the revenue from exporting electricity.
2.4 Bridging Our Trade Deficit
The additional foreign currency inflows from state-run Bitcoin mining would help Ethiopia close its trade deficit, alleviate reliance on the black market for USD, and reduce the urgent need for tight capital controls.
3. Establishing a National Bitcoin Reserve
Beyond mining, we have advocated in our proposal on bitcoin.com.et and projectmano.com/plan for systematic accumulation and custody of Bitcoin at the national level—akin to how countries hold gold. A multi-pronged strategy can include:
Retaining a Percentage of Mined BTC
Divert a significant share (e.g., 40–60%) of newly mined coins into a national reserve wallet under the supervision of the National Bank of Ethiopia.
Borrowing Against Collateral
When the government needs rapid liquidity in USD or other fiat, it can temporarily borrow against the Bitcoin—rather than selling it outright—through established crypto custody solution platforms. Meaning loan repayment secures the collateral bitcoin.
Periodically Selling for Forex Needs
A smaller fraction of monthly mining output can be sold on international markets to address near-term government budget or trade requirements.
By gradually growing a Bitcoin reserve, Ethiopia hedges the ongoing devaluation of the USD. If the Federal Reserve or other major central banks further inflate their currencies, our holdings—pegged to a digitally scarce asset—will offer long-term resilience that no fiat-based asset can rival. The details of how this can be done can be shared in private with any interested parties and a high level highlight of how this should be done can be found on Project Mano’s website, bitcoin.com.et
4. Addressing Risks and Counterarguments
4.1 Volatility Concerns
Yes, Bitcoin’s price can fluctuate significantly. However, when one is mining, you acquire BTC well below prevailing market prices (due to leveraging low electricity costs), thereby mitigating the risk. Moreover, historical data indicates that Bitcoin’s long-term trajectory remains upward, correlating with its fixed supply and growing global adoption.
4.2 Regulatory Hurdles
Some worry about potential restrictions by international lenders or legacy institutions. Yet we have witnessed countries like El Salvador declare Bitcoin legal tender, and certain U.S. states are pushing for pro-Bitcoin legislation. Africa also stands at the forefront of fintech innovation, and Ethiopia can lead the charge rather than wait for permission from institutions whose monetary policies have historically not served us well.
4.3 Technological Barriers
Bitcoin mining hardware (ASICs) is widely available, and the know-how to install large-scale mining farms is no longer niche. Countries with far fewer resources than Ethiopia have established successful mining operations. Ethiopia already has a strong track record of large infrastructure projects (GERD being the most prominent). Rolling out a modern mining facility, powered by hydropower, is straightforward by comparison—especially if we engage credible local and international specialists.
5. The Consequences of Delay: Inflation, Unrest, and Lost Generations
Project Mano has insisted since 2019 that we risk permanent economic stagnation if we do not act decisively. The Birr’s freefall is no longer a vague fear or conspiracy on Project Mano website but an everyday reality; Ethiopia’s real foreign exchange position is precarious, necessitating relentless import restrictions. Meanwhile, foreign miners exploit our stranded energy for their sole profit, and other countries—some possibly with far less renewable capacity—are positioning themselves to adopt Bitcoin at scale.
The human cost is also staggering. Widening economic gaps and resource scarcity fuel ethnic conflicts, as communities jostle for diminishing purchasing power. The sale of scarce electricity to foreign interests—earning a scant few million dollars in return—while the potential to earn billions is neglected, exacerbates poverty and sows social discord. We see it in daily life: a used car that might cost USD 5,000 elsewhere can cost an Ethiopian nearly USD 17,000 worth of their currency, owing to inaccurate exchange rates and inflated import tariffs. We are all paying for a failing monetary policy.
6. A Comprehensive Approach and Immediate Action
State-Monopolized Mining
Stop granting exclusive rights to foreign miners. Instead, form public-public or public-private partnerships where Ethiopian authorities own and operate the ASIC hardware, ensuring profits return to the Ethiopian treasury. We have lost a significant amount of revenue by importing foreign miners instead of performing at State level and locals-only Bitcoin mining infrastructure.
To finally lift Ethiopia out of this cycle of devaluation, restricted imports, and missed opportunities, we propose the following immediate steps:
Formation of a National Task Force
Create an inter-ministerial body (including the Ministry of Finance, the National Bank, Ethiopian Electric Power, and credible tech experts) to lay out the roadmap for state-dominated Bitcoin mining and national reserve accumulation.
Regulatory and Legal Foundation
Pass legislation or directives that:
- Explicitly permit local Bitcoin mining and ownership.
- Restrict or heavily regulate foreign-run mining to ensure most revenues remain in Ethiopia.
- Provide a legal basis for the National Bank of Ethiopia to purchase, hold, and liquidate Bitcoin in official reserves.
Pilot Mining Project
Start with a pilot near a major hydro site (such as a small portion of GERD capacity, e.g., 50–100 MW). Document profitability, refine operational guidelines, and quickly ramp up capacity once the pilot proves successful.
Reserve Management
Establish secure custody solutions (e.g., multi-signature wallets) overseen by the National Bank. Decide on a strategic ratio: a portion of mined BTC for immediate sale, a portion for long-term holding, and an optional portion to be used as loan collateral.
Public Transparency and Outreach
Communicate the plan to the Ethiopian people and the global investment community, highlighting how state-driven Bitcoin mining will reduce dependence on volatile fiat, strengthen the Birr, and create new funding streams for electrification, education, and infrastructure.
7. Conclusion: A Historic Opportunity for Ethiopia
While we have lost ample time since first proposing this plan in 2019, it is not too late. But every month that passes sees more Bitcoin mined, bought, and locked away by private funds and progressive governments—rendering it increasingly scarce and expensive for newcomers. Meanwhile, the Birr’s slide against the USD accelerates, fueling the black market, limiting imports, and threatening further social instability.
We must act now. By harnessing just a fraction of our immense hydropower, Ethiopia can directly generate billions of dollars annually, stabilize its currency via a robust, cryptographically guaranteed reserve asset, and reclaim its sovereign financial trajectory. In doing so, we will also electrify more of our country, foster tech-savvy job creation, and attract global innovation.
In the words often shared in Bitcoin circles: “Fix the money, fix the world.” For Ethiopia, this is more than a slogan—it is a clarion call to seize a golden (and limited) opportunity to transcend a century of monetary constraints. Let us mine Bitcoin ourselves, keep the profits in Ethiopia, and ensure our children inherit a nation with real monetary strength and dignity on the world stage.
We, at Project Mano, stand fully prepared to support the Government and the National Bank with technical guidance, global partnerships, and in-depth implementation strategies. We humbly ask that you give this proposal the urgent consideration it deserves.
Sincerely,
Project Mano
