Angola Bans Crypto Mining Over Energy Crisis: What Happened and Why

When Angola shut down all cryptocurrency mining in April 2024, it wasn’t because of fear of digital currency. It was because the lights were going out in hospitals, schools, and homes-and mining rigs were stealing the power.

Why Angola Stopped Crypto Mining

Angola’s national grid can only produce about 5,500 megawatts of electricity for nearly 40 million people. That’s not enough. Six out of ten urban households face daily blackouts. Meanwhile, illegal crypto mining operations were sucking up 15% of the country’s total power during peak hours. That’s like turning off every light, fridge, and fan in a city the size of Luanda just to keep Bitcoin machines running.

The math was brutal. One Bitcoin mined in Angola used 1,440 kilowatt-hours of electricity. That’s 40 times more than a typical bank transaction. And these weren’t small setups. Operators used ASIC miners drawing 3,200 watts each-thousands of them. Some mining farms consumed as much power as 300,000 homes. When the dry season hit and hydropower from the Cambambe Dam dropped to 38% capacity, the government had to choose: keep the lights on for people, or let miners keep mining.

They chose people.

The Ban and the Penalties

The Angolan government didn’t just discourage mining-they made it a crime. Operating crypto mining equipment became illegal. Possessing the hardware? Illegal. Using a modified power line to steal electricity? Also illegal.

Penalties? One to five years in prison. Plus, all equipment gets seized. No exceptions. Not even if you were using solar panels. The ban applies to everyone, regardless of energy source. The government’s message was clear: no energy diversion, period.

This wasn’t just a policy. It was enforced with teeth. In August 2025, as part of Interpol’s Operation Serengeti 2.0, Angolan police raided 25 underground mining centers. They arrested 60 Chinese nationals-the only people caught in the crackdown. They seized 8,300 ASIC miners, 15,000 graphics cards, and 45 illegal power stations that had been siphoning electricity directly from the grid. The total value? Over $37 million.

How They Caught Miners

Angola didn’t rely on luck. They built a system.

The National Electricity Agency (INE) started scanning smart meter data for abnormal 24/7 power usage. If a building was using more than 100 kilowatts constantly, it got flagged. Police got training from Interpol to spot mining gear using thermal cameras-ASICs run hot, often above 45°C. They could even detect electromagnetic signatures from mining rigs from a distance.

But the real game-changer? A whistleblower program. People could report suspicious operations and get 5% of the seized equipment’s value-up to $50,000. Over 70% of the raids in August 2025 came from tips. Neighbors turned in neighbors. Business owners reported rival shops. A Reddit post from April 2024, where a user said, “I saw our local clinic running on generators while mining farms used industrial transformers,” got over 1,200 upvotes. That sentiment was widespread.

Who Got Hurt-and Who Benefited

The miners? They lost everything. Many had moved to Angola because electricity cost just $0.03 per kWh-half the global average. But the grid was unreliable. Equipment failed 40% of the time due to power surges and outages. Some paid $500 a month in bribes just to keep running. When the ban hit, they had no safety net.

But ordinary Angolans? They started seeing results. Hospitals reported fewer generator failures. Schools got more consistent power. In Benfica, Luanda, electricity tariffs dropped 12% within six months of the ban. The government stopped blaming “corruption” for blackouts and started blaming mining farms.

The crackdown also had regional ripple effects. Namibia saw a 200% spike in mining operations as Angolan operators fled across the border. But Namibia’s electricity cost $0.12/kWh-four times more. Profit margins collapsed. Some miners returned home. Others gave up.

What Happens to the Seized Equipment?

The government didn’t just destroy the machines. They repurposed them.

All seized ASIC miners and GPUs were inventoried using blockchain tracking systems provided by Interpol. Machines worth over $10,000 are auctioned off after 90 days. But the majority-65%-are going to universities. The rest are going to municipal e-government offices to run public service apps, digital ID systems, and online tax platforms.

It’s not perfect. Forty percent of the raided sites had fake permits. Legal battles over ownership are still ongoing. But the goal is clear: turn the tools of speculation into tools of public service.

Will Angola Ever Allow Mining Again?

Right now? No.

The government has ruled out any exemptions-even for renewable energy. Solar potential in Angola is high: 2,200 kWh/m² annually. But officials say they won’t allow mining unless it’s 100% off-grid and never touches the national system. Even then, it’s not guaranteed.

President João Lourenço met with solar company Solax Power in September 2025 to explore pilot projects. But Energy Minister João Baptista Borges made it clear: “With 15 million citizens without reliable electricity, we can’t permit energy diversion for speculative digital assets.”

Analysts agree. Standard Bank’s Naledi Molefe says Angola won’t reconsider mining until grid reliability hits 90%. Right now, it’s below 50%. The Cambambe III hydropower expansion, due in 2028, will add 1,150 megawatts. That’s a start. But the country needs $12 billion in infrastructure upgrades by 2030 to reach 85% electrification. That’s a tall order.

How Angola Compares to Other African Nations

Angola isn’t alone in cracking down. Seven of 15 countries in the Southern African Development Community (SADC) have restricted mining since 2022. But Angola’s ban is the strictest.

Nigeria and Kenya let mining happen but regulate exchanges. South Africa taxes mining at 15% of energy use-and uses the money to fix the grid. It’s raised $120 million since 2023.

Angola chose a different path: total shutdown. It’s harsh. But for a country where a child dies every hour from preventable causes linked to power outages, the calculus isn’t about crypto. It’s about survival.

What This Means for the Global Crypto Industry

Angola’s hash rate-its total computing power for mining-plummeted from 0.8% to 0.02% of the global total after the ban. That’s 1.2 exahashes lost. The industry moved on. Miners went to Kazakhstan, Paraguay, the U.S., and Canada.

But Angola’s story is a warning. As energy prices rise and climate pressures grow, more countries may follow. Crypto mining isn’t just a tech issue. It’s an energy issue. And when the grid is on the brink, governments won’t choose algorithms over ambulances.

The lesson? If you want to mine crypto in a developing country, don’t just look for cheap power. Look for stable power. And if the power isn’t stable? Don’t risk it. Because when the lights go out, the first thing to get cut isn’t the TV. It’s the mining rig.