Bitcoin in the Bush: The Crypto Mine Transforming Remote Zambia
By Joe Tidy, BBC World Service Cyber Correspondent
Zambia – In the far north-western tip of Zambia, near the border with the Democratic Republic of Congo (DRC), the hum of technology resonates against the backdrop of the Zambezi River’s powerful roar. Hidden within this picturesque wilderness is an unusual sight: a bitcoin mine ingeniously set up in a shipping container, bustling with 120 computers. This mine is more than just an unconventional investment; it’s a lifeline for the local community.
A Sound Investment
Philip Walton, an engineer from Kenya-based Gridless, stands proudly before the container filled with computers that are engaged in complex calculations to verify bitcoin transactions. In return, the mine is rewarded with bitcoin from the network, creating a unique intersection of technology and local resources. “It’s the sound of money!” Philip enthusiastically remarks, aware of the economic potential that this remote operation harbors.
This particular mine is distinct from others due to its strategic location. Positioned right next to the Zambezi, it taps into the hydro-electric power generated by a nearby plant, drawing from the river’s potent energy. The advantage of this setup? Cheap and sustainable electricity, an essential aspect of maintaining profitability in the notoriously volatile cryptocurrency market.
Harnessing Hydropower
The Zengamina hydro-power plant, which began operation in 2007, generates energy not just for the bitcoin mine, but for approximately 15,000 local residents. Built with charitable donations totaling $3 million, the plant initially aimed to support the local hospital but struggled to become financially viable due to limited demand.
Daniel Rea, who runs the plant, explains, “Every day we were wasting over half of the energy we could generate… We needed a major user of power, and that’s where the game-changing partnership with Gridless came in.” This partnership has allowed the plant to earn revenue from excess electricity, which has significant benefits for both the mining operation and the local community.
Local Impact
The impact of this partnership transcends mere economics, bridging the gap between technology and local needs. The community of Zengamina has experienced palpable changes since gaining access to reliable electricity. For businesses like Damian’s barbershop, which was powered up only a year and a half ago, the transformation is profound. “Getting power has changed my life,” he shares, illustrating the newfound freedom and opportunities that electricity brings to his customers and himself.
Residents like sisters Tumba and Lucy Machayi echo this sentiment. “Electricity completely changed the lives of people here,” they reflect, recalling the days when their community relied solely on solar panels, lacking basic utilities such as refrigeration and connectivity. With the arrival of hydro-powered electricity, they have unlocked new possibilities for communication and business.
A Sustainable Future?
As Gridless continues to thrive in this remote area, plans are underway to expand Zengamina Hydro to more villages, eventually linking to the national grid. However, once this expansion occurs, the viability of bitcoin mining in the area may dwindle, as the excess energy that powered the mining operations will then be directed to the grid.
Despite this, Philip and his team remain optimistic. They view their time in Zengamina as productive, having supported the local economy while also making a profit in bitcoin. Gridless has eyeing further opportunities across Africa, with six other locations already set up in various countries harnessing similar “stranded” energy resources.
Gridless co-founder Janet Maingi outlines ambitious future ambitions to establish their own hydro-plants, focusing on sustainable run-of-river models. “A consumer-driven, adaptive energy model is essential for scalable, affordable, and sustainable energy access that meets the needs of African communities,” she explains, emphasizing the interdependence of mining and community development.
Facing Challenges
While the potential for expansion exists, the company faces resistance from some local authorities and businesses hesitant about the perceived energy-greedy nature of bitcoin mining. Nonetheless, Gridless argues that its operations ultimately benefit local communities by ensuring that excess energy is utilized, fostering an environment where electricity is available to those in need.
The experience in Zengamina highlights a broader trend of bitcoin mining operations that are increasingly weaving themselves into local economies while navigating challenges surrounding sustainability and community impact. As discussions about the environmental effects of bitcoin mining continue, setups like this offer a glimpse into a future where technology can bring tangible benefits far beyond just digital currency.
As Zengamina Hydro prepares for further expansion, both the local community and Gridless look forward to a sustainable and prosperous energy-driven future, balancing profit and public service in the heart of Zambia.
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