ADDIS ABABA — Ethiopia on Tuesday inaugurated the Grand Ethiopian Renaissance Dam, Africa’s largest hydroelectric project, in a move celebrated at home but fiercely opposed in Egypt.
The $5 billion dam, built on the Blue Nile, is seen by Addis Ababa as the centrepiece of its economic ambitions. With a planned capacity of more than 5,000 megawatts, it promises to bring electricity to millions in a country where half the rural population still lives without power.
Prime Minister Abiy Ahmed called it a milestone for the region. “The Renaissance Dam is not a threat, but a shared opportunity,” he told parliament in July. “The energy and development it will generate stand to uplift not just Ethiopia.”
A Regional Rift
For Egypt, the story is very different. Cairo relies on the Nile for about 90 percent of its fresh water and fears the dam could choke supplies in years of drought. Egyptian officials have long argued the project breaks colonial-era treaties that guarantee them the lion’s share of the river’s flow.
On Monday, Foreign Ministry spokesperson Tamim Khallaf said Egypt would “exercise its right to take all the appropriate measures to defend and protect the interests of the Egyptian people.”
Sudan, caught in the middle, has echoed calls for binding agreements on how the dam is filled and operated. Yet Khartoum also sees possible benefits: better flood control and cheaper power.
History of Tension
The dispute has simmered since construction began in 2011. Talks sponsored by the African Union, the United States and others have repeatedly collapsed without a deal.
Former U.S. President Donald Trump once warned the situation was so volatile that Egypt might “blow up that dam.” No such action followed, but his words underlined the depth of concern in Cairo.
Unity at Home
Inside Ethiopia, the project has been a rare rallying point in a nation fractured by years of ethnic conflict. Magnus Taylor of the International Crisis Group noted that most Ethiopians support the dam. “The idea that Ethiopia should be able to build a dam on its own territory… and shouldn’t be pushed around by Egypt is broadly something that most Ethiopians would get behind,” he said.
Financed almost entirely from domestic resources — 91 percent from the central bank and the rest through bonds and gifts from citizens — the project has also become a symbol of national pride.
What Lies Ahead
So far, careful filling of the dam’s vast reservoir has prevented major disruptions downstream. Heavy seasonal rains have helped ease concerns, according to independent studies.
Still, the future is uncertain. Ethiopia says the reservoir, now covering an area larger than Greater London, will secure water for both power and irrigation. But analysts warn the bitter dispute with Egypt could deepen, especially as Addis Ababa looks to expand its influence in the Red Sea region — a move Cairo views with suspicion.
For now, the turbines hum, lighting homes and businesses across Ethiopia. Yet the Nile, lifeline of millions, remains at the heart of one of Africa’s most combustible rivalries.
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