A Milestone for Ethiopia, a Point of Contention for the Nile Basin

The Grand Ethiopian Renaissance Dam (GERD), now the largest hydroelectric dam in Africa, officially opened on September 9th. The project, hailed as a significant accomplishment for both Ethiopia and the entire African continent, cost £3.7 billion to construct. Built between 2011 and 2023, the dam is situated on a tributary of the River Nile and is designed to provide electricity to millions of Ethiopians. The dam boasts an installed capacity of 5,150 megawatts.

The project was financed primarily by Ethiopia itself. The central bank contributed 91% of the funds, with the remaining finances coming from Ethiopians through bond sales and donations. Ethiopian Prime Minister Abiy Ahmed has stated that the dam will improve citizens' access to electricity and allow for the export of surplus power to neighboring countries.

However, the GERD has created tension with Egypt, a major nation in Africa. Egypt, which built its own Aswan High Dam on the Nile in the 1960s, is concerned that the GERD could reduce its water supply, especially during droughts, and potentially lead to the construction of other upstream dams. Egypt relies heavily on the Nile for its freshwater needs. An Egyptian foreign ministry spokesperson has stated that Egypt will continue to monitor the Blue Nile and protect its interests.

Egypt has opposed the GERD from the outset, citing concerns about potential threats and violations of historical water treaties. Sudan supports Egypt's calls for legally binding agreements regarding the dam's operation, potentially benefiting from improved flood management and access to affordable energy. Despite international concerns, Ethiopia has maintained that the project is a sovereign right. In 2020, the country began filling the reservoir in stages, asserting that the dam would not harm downstream countries.

Prime Minister Abiy has emphasized that the GERD is a shared opportunity, not a threat, and that it will benefit not only Ethiopia but the entire region. Independent studies suggest that downstream flows have remained largely unaffected in recent years, due in part to favorable rainfall and the careful filling of the reservoir. The dam has flooded a large area, which the Ethiopian government says will provide a stable water supply for hydropower and irrigation downstream, while also reducing the risk of floods and droughts. However, only half of the country's population is currently connected to the national grid, meaning that residents in rural areas will have to wait to benefit from the extra power.