African-based companies involved in Bitcoin mining have come together to create the Green Africa Mining Alliance (GAMA). GAMA’s explicit goal is to contribute to the development of the mining industry in Africa while respecting the Sustainable Development Goals.
Recently, GAMA launched an aid and support program for individuals or businesses who wish to enter this industry. The alliance will help new miners by providing them with necessary equipment, resources and general support.
The challenges facing bitcoin miners in Africa
Currently, Bitcoin mining in Africa remains a minor activity. However, in recent years, operators have established themselves on the continent to deploy their operations. This is particularly true of members of the GAMA alliance , which includes companies such as Gridless based in Kenya , Trojan Mining in Nigeria, and BigBlock Data Center based in Congo.
In North Africa, there are also individual and clandestine miners, particularly in Egypt, who take advantage of a relatively low electricity price compared to the rest of the world.
However, mining in Africa is generally a very small minority, accounting for only 1% of the global hash rate . This is because it is an extremely complex activity with numerous challenges to overcome. The lack of expertise among operators, the difficulty in obtaining the necessary equipment, and a lack of legal regulations are the main obstacles faced by miners based in Africa.
The objectives of the GAMA alliance
In order to help resolve the problems faced by minors in Africa, the GAMA alliance has set itself several objectives:
- Increase the geographic distribution of mining around the world, giving a place to Africa, in order to increasingly decentralize the Bitcoin network.
- Help and assist new miners to find renewable energy sources.
- Catalyze electrification in Africa through the installation of new operators in strategic locations.
- Providing a body of knowledge and research to help policymakers better understand the Bitcoin mining industry.
Overall, the GAMA alliance seeks to drive and participate in the development of Bitcoin mining in Africa, powered by renewable energies.
Lately, GAMA has also launched a startup program to help new miners get started.
What does the GAMA bootstrap program contain?
In the interest of democratization, the program is open to everyone, without any restrictions. Any organization or individual interested in the program can apply directly via the online form on the website.
If the candidates are selected, they will receive five refurbished ASIC mining devices to begin their operations. These devices will be available at a reduced price, including a discount on shipping and any applicable customs fees.
During the first 3 months of activity, the teams responsible for the GAMA assistance program will support the new miners. Once they are familiar with the equipment, they will then be able to obtain 10 other ASICs with the same conditions.
The idea of the program is to make bitcoin mining accessible to people who want to get started but who do not have the knowledge or finances necessary to do so.
The rise of interest in Bitcoin mining in Africa
Clearly, Bitcoin mining in Africa is gaining popularity among both mining companies and local entrepreneurs. At the second Africa Bitcoin Conference held in Ghana, members of the GAMA alliance organized an interactive workshop on Bitcoin mining, aiming to spark interest among a wider audience.
More and more initiatives are being organized in this direction, such as the "Africa Bitcoin Mining Summit", which is more of an event organized by miners for miners located in Africa.
Many people in Africa see Bitcoin mining on the continent as a way to contribute to sustainable development goals while opening up the local economy to a potentially lucrative new sector. Furthermore, Bitcoin mining could also contribute to the electrification of remote areas. This is certainly the reason why many Bitcoin communities are considering mining as a driver of economic development on the continent, as evidenced by the Mano project in Ethiopia.
It is worth noting that, according to the International Energy Agency (IEA) , 600 million people, or approximately 43% of the African population, do not have full access to electricity. Most of them live in sub-Saharan Africa.
Mining as an economic and ecological opportunity
Finally, the mining sector in Africa is growing and experiencing rapid developments. This opens new perspectives for certain economies while respecting sustainable development objectives.
Thus, while Bitcoin mining still faces strong criticism regarding its electricity consumption, it's important to remember that more than half of the energy comes from renewable sources , and this environmentally friendly aspect of mining is growing stronger every year. It also presents an opportunity for African regions to benefit from cheaper and therefore more accessible energy.
Initiatives like those proposed by the GAMA alliance are striking examples of this awareness.
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