Ethiopia has announced on July 3, the completion of the Grand Ethiopian Renaissance Dam (GERD), a $4 billion hydropower project on the Blue Nile that has long been a point of contention with Egypt.
Prime Minister Abiy Ahmed, addressing lawmakers on Thursday, confirmed the dam is ready for official inauguration in September and reaffirmed Ethiopia’s commitment to shared regional prosperity. The GERD, Africa’s largest dam, is expected to generate over 6,000 megawatts of electricity—doubling Ethiopia’s current output and positioning the country as a potential energy exporter.
While Ethiopia insists the dam is essential for lifting millions out of poverty, Egypt continues to express concern that the project threatens its critical share of Nile waters. Despite years of negotiations, no binding agreement has been reached on water release protocols during droughts. Egypt, which relies almost entirely on the Nile for agriculture and domestic use, views the dam as an existential threat. Meanwhile, Ethiopia has gained support from upstream countries and the Nile Basin Initiative, which Egypt and Sudan have yet to ratify, further complicating regional water diplomacy.