Ethiopia officially inaugurated the Grand Ethiopian Renaissance Dam (GERD), now the largest hydroelectric facility in Africa. Built over 14 years at a cost of $4.8 billion, the dam is designed to generate up to 5,150 MW of power, marking a pivotal investment in Ethiopia’s energy future. The project, largely financed through contributions from the Ethiopian diaspora, aims to transform energy access for homes and industries across East Africa.

Despite its promise, the dam has fuelled diplomatic tensions. Egypt and Sudan, both downstream countries, have long warned that the GERD could threaten their water security amid recurring droughts. They argue Ethiopia’s unilateral approach, including reservoir filling without a binding agreement, violates colonial-era treaties, sparking alarm in Cairo. Ethiopia, however, maintains it isn’t bound by outdated accords and frames the dam as a sovereign leap toward development.

GERD is more than a power plant; it’s a unifying emblem of national pride. With only about half of Ethiopia’s population currently connected to the grid, the dam promises to extend electricity to rural areas and drive industrial growth. Surplus power is poised to be exported to neighbouring countries, positioning Ethiopia as an energy hub in the region. Yet without regional coordination, especially with Egypt and Sudan, the potential for escalation remains.

Key Takeaways:

• Ethiopia opens GERD, Africa’s largest dam, boosting national and regional energy capacity.
• Diplomatic strains persist, with Egypt and Sudan opposing unilateral operations.
• GERD symbolizes growth, but unlocking its full benefits requires regional cooperation.