from ADANE BIKILA in Addis Ababa, Ethiopia
Ethiopia Bureau
ADDIS ABABA, (CAJ News) – ETHIOPIA has inaugurated the Grand Ethiopian Renaissance Dam (GERD), a $5 billion mega project that cements its position as a rising energy hub in Africa and a key player in global hydropower development.
Standing on the Blue Nile in the Benishangul-Gumuz region near the Sudanese border, the GERD is the largest hydroelectric power plant in Africa and ranks among the top 20 worldwide, with an installed capacity of 5,150 megawatts.
The project, under construction since 2011, promises to transform Ethiopia’s economy, relieve its domestic energy shortages, and generate critical export revenue by supplying electricity to neighbouring countries.
Prime Minister Abiy Ahmed hailed the dam as a “defining achievement” in Ethiopia’s modern history.
“The Grand Ethiopian Renaissance Dam is more than just an infrastructure project—it is a symbol of our collective will, resilience, and vision for a prosperous Ethiopia,” Abiy declared at the opening ceremony.
“This dam will power our homes, our schools, our hospitals, and our industries, and it will also allow Ethiopia to share clean energy with our neighbours. GERD is a project of peace, cooperation and regional integration.”
The GERD’s inauguration follows a 14-year construction journey that involved multiple design changes, technical hurdles, and political tensions.
Financing proved especially challenging after Egypt opposed the project, arguing it could threaten its share of Nile waters.
International lenders withheld support, forcing Ethiopia to rely on local bond sales, diaspora contributions, and limited external funding, including a $1 billion loan from China’s Exim Bank for turbines and electrical equipment.
Despite the challenges, Ethiopia successfully completed the dam’s reservoir filling in five phases between 2020 and 2024.
In February 2022, GERD began generating electricity, initially adding 375 megawatts to the national grid. By 2024, four major turbines were fully operational.
The project has not been without controversy. Egypt, which relies on the Nile for 90 percent of its water supply, long opposed the GERD, citing fears of reduced downstream flows.
Sudan’s position shifted over time, from concern to cautious support, as the dam also promises benefits such as flood control and regulated water flows. Ethiopia, however, maintains that the dam will not harm downstream nations.
Beyond geopolitics, the GERD is expected to reshape Ethiopia’s economic prospects.
With over 60 percent of Ethiopians lacking reliable electricity, the dam’s output will significantly expand domestic access while enabling exports to Sudan, Djibouti, Kenya and beyond.
Ethiopia estimates the project could generate billions in annual revenue once full exports commence.
The 74-billion-cubic-metre reservoir is also expected to support fisheries, tourism, and water management.
“With GERD, Ethiopia is taking a decisive step toward industrialisation and energy sovereignty,” Abiy added. “This project is for generations to come—it will illuminate our future.”
For Ethiopia, the GERD is more than an engineering marvel; it is the centrepiece of its vision to harness natural resources for sustainable growth, asserting itself as a clean energy leader in Africa.
– CAJ News