Bitcoin and the Business of Electricity

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To many, Bitcoin is a notorious transactional engagement that can result in a deficit of one’s assets or pay remarkably high rewards to its investors. On the other hand, some operators of this cryptocurrency industry are encouraging economic activity and growth in rural parts of Southern and Eastern Africa. Gridless is a Kenyan-founded Bitcoin organization that operates its mining at hydroelectric power plants in Kenya, Zambia, and Malawi, investing in those sources of energy whilst helping to provide electricity to locals nearby. In this article, I will underline how Gridless supports local economic activity and contributes to the mission of electrifying Africa.

Over 600 million people in rural parts of Africa lack access to electricity due to distribution failure by public sector energy companies. Fortunately, private-sector businesses are taking the initiative to mitigate this issue. Among these businesses is Zengamina Power, a hydroelectric power plant in Ikelenge, North Western Zambia. After producing over 50% of wasted energy and struggling to meet running costs due to a slow uptake from the community, the company reported to the BBC that it partnered with Gridless to generate more cost-effective and accessible energy. Gridless connects their makeshift computer lab to the hydroelectric system and gives a revenue cut to the power company. This model provides Gridless with cheap electricity to facilitate its operations and helps Zengamina maintain economic stability. Furthermore, Zengamina can offer more affordable electricity to locals, encouraging business and commercial activity and improving the lifestyles of those residing in the area.

Having electricity enriches the lives of locals who struggle to undertake day-to-day activities efficiently without it. In a Bitcoin Magazine interview, Gridless co-founder Janet Maingi highlights how rural areas experience resource scarcity and a weakened quality of life due to lack of electrification; “there are certain vaccinations recommended by the WHO that your kid needs to get — measles, polio, etc — but the nearest [powered] health center that has them sometimes isn’t close.” However, she describes progress as her company makes strides to mitigate these issues, such as in the Bondo area of Malawi: “Health centers are getting powered on, so more vaccines are available in more local health centers.” Improvements like these ensure more people have access to essential resources needed to flourish in all facets of life.

Nonetheless, some institutions have criticized the conduct of Gridless, mistrusting its ability to benefit the local population and accusing it of exploiting the electrical reserves of the Sub-Saharan region. In a BBC article, the company’s practices are set against the 2020-2021 Kazakhstan mining boom. According to the rest of the World, mass Bitcoin mining in northern Kazakhstan resulted in civil upheaval as power outages swept the

country. However, the company has stated that its primary priority is to provide for the highest number of buyers, who are the local people. Gridless does this through software it created, which measures the energy demand response of local areas to prevent the overuse of electricity.

Ultimately, Gridless is a unique example of how a Bitcoin business model can contribute to the wider community and foster economic activity and trade. The business’s unconventional method of executing commerce displays the good that derives from innovation. Its prospects include establishing its own hydroelectric power source in Congo for a more sustainable and profitable business strategy.

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References:

Alex. (2018, October 4). Access to electricity by country (% of population). Vivid Maps. https://vividmaps.com/access-electricity-country-population/

Bisenov, N., & Tobin, M. (2022, March 13). “It’s a mess”: How crypto mining went from boom to bust in Kazakhstan. Rest of World. https://restofworld.org/2022/crypto-miners-fleeing-kazakhstan/

Corva, F. (2024, December 17). Gridless is mining Bitcoin while fostering human flourishing in Africa. Bitcoin Magazine. https://bitcoinmagazine.com/business/gridless-is-mining-bitcoin-while-fostering-human-flourishing-in-africa

Tidy, J. (2025, March 25). Bitcoin in the bush – crypto mining brings power to rural areas. BBC. https://www.bbc.com/news/articles/cly4xe373p4o