October 15, 2025
Africa Economy

Ethiopia inaugurates Africa’s largest hydroelectric dam amid Nile tensions

Ethiopia has officially launched the Grand Ethiopian Renaissance Dam (GERD), set to produce 5,150 megawatts of electricity, making it the largest hydropower dam in Africa. The inauguration deepens existing tensions with downstream neighbours Egypt and Sudan concerned about water flow.

The dam, costing about $5 billion and largely funded domestically, aims to electrify large parts of Ethiopia and position the country as a regional power exporter. Although Ethiopia claimed the project would not harm downstream countries, Egypt and Sudan have expressed concerns. Ethiopia emphasises benefits in flood control and irrigation, though critics argue for clearer agreements and legally binding treaties around water use.

The dam, costing about $5 billion and largely funded domestically, aims to electrify large parts of Ethiopia and position the country as a regional power exporter. Although Ethiopia claimed the project would not harm downstream countries, Egypt and Sudan have expressed concerns. Ethiopia emphasises benefits in flood control and irrigation, though critics argue for clearer agreements and legally binding treaties around water use.

Source: Reuters / The Guardian

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