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Ethiopia launches massive Nile dam despite bitter Egyptian opposition

By TheSun in September 9, 2025 – Reading time 2 minute
Ethiopia launches massive Nile dam despite bitter Egyptian opposition


NAIROBI: Ethiopia officially inaugurated Africa’s largest hydroelectric dam on Tuesday amid ongoing tensions with downstream neighbour Egypt over water rights. The Grand Ethiopian Renaissance Dam represents a $5 billion project central to Ethiopia’s economic development ambitions for its 120 million population.

Construction began in 2011 with power generation capacity eventually reaching 5,150 megawatts from the current 750 megawatts produced by two active turbines.

Prime Minister Abiy Ahmed stated Ethiopia would use the energy to improve domestic electricity access while exporting surplus power regionally. Egypt fears the dam could restrict its water supply during droughts and potentially lead to other upstream dam constructions. The North African nation depends on the Nile for approximately 90% of its fresh water supply for its 108 million citizens.

Egyptian Foreign Ministry spokesperson Tamim Khallaf confirmed Egypt would continue monitoring Blue Nile developments and exercise its right to protect Egyptian interests. Sudan has joined Egypt’s calls for legally binding agreements on dam operations while potentially benefiting from improved flood management and cheaper energy. Former US President Donald previously supported Egypt’s position during his first term, suggesting Cairo might end up “blowing up that dam” without a resolution.

Ethiopia maintains the dam represents sovereign development rather than a threat to downstream nations. Prime Minister Abiy told parliament in July that the Renaissance Dam offers shared opportunities for energy and development upliftment across the region. Independent research indicates no major downstream flow disruptions have occurred so far, attributed to favourable rainfall and cautious reservoir filling during wet seasons over five years.

The project has served as a source of national unity within Ethiopia despite internal ethnic conflicts according to International Crisis Group analyst Magnus Taylor.

Ethiopia’s central bank provided 91% of project funding while citizens contributed 9% through bond sales and gifts without foreign assistance. The dam’s reservoir has flooded an area larger than Greater London, promising steady water supply for hydropower and irrigation while limiting floods and drought impacts.

Rural Ethiopians may wait longer for benefits as only half currently connect to the national grid according to reports. Relations with Egypt have deteriorated over the past year and could worsen further according to Sahan Research analyst Matt Bryden.

Ethiopia’s plans for sea access through Eritrea or Somalia have prompted Egypt to strengthen ties with both nations, creating additional regional tensions beyond the Nile dispute. – Reuters



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