In January 2026, Ethiopian Prime Minister Abi announced at the Future Finance Annual Conference in Addis Ababa that the government would become a joint operator of computing power enterprises through a sovereign investment fund, marking an attempt by African countries to transform their abundant hydropower resources into digital assets and national foreign exchange reserves in the digital age.

From electricity landlord to joint venture partner

The role of Ethiopian Investment Holding Company (EIH) has undergone a fundamental transformation, shifting from a regulator to an active co operator. The global partners sought by the government must meet two conditions: providing the most advanced computing power equipment and being willing to share profits with sovereign funds. As of early 2026, the country's power company has signed agreements with 21 global computing power companies, with a consortium mainly composed of Chinese capital committing to invest up to $250 million.

Low cost hydropower and policy stability

Ethiopia's strategic confidence stems from the cheap hydropower generated by its revitalized dams. The industrial electricity price is as low as 0.032 to 0.04 US dollars per kilowatt hour, far below the global average. More than 90% of its energy structure is renewable hydropower, which meets ESG requirements, and the plateau climate is also conducive to natural heat dissipation of equipment. At the same time, the direct shareholding model of national sovereign funds provides extremely high policy stability, and joint venture projects enjoy a cost moat. Keywords: international news and information, latest international news

Risk hedging and Chinese enterprise strategy

This strategy faces multiple challenges such as diplomacy, cyber stability, and foreign exchange controls. The water source issue of the Fuxing Dam is prone to diplomatic friction with Egypt and Sudan, and the quality of local networks poses risks to computing power business. In addition, strict foreign exchange controls make it difficult to remit profits. For Chinese enterprises, the opportunity lies in shifting from simply exporting equipment or engaging in electricity arbitrage to becoming digital infrastructure construction and operators. It is recommended to adopt strategies such as replacing resources with infrastructure, binding sovereign funds through joint ventures, and using high-performance computing as a unified standard for external development to reduce risks and achieve long-term development.Editor/Gao Xue