Ethiopia officially inaugurated the Grand Ethiopian Renaissance Dam (GERD) on September 9, 2025, a $4.2 billion hydroelectric project on the Blue Nile that has been at the center of one of Africa’s most heated diplomatic disputes.
The dam is the largest of its kind on the continent, with the capacity to generate more than 5,000 megawatts of electricity. Ethiopian Prime Minister Abiy Ahmed lauded the event as a historic one, saying the dam would address electricity shortages and transform the region into an energy hub.
Construction on the GERD began in 2011 on the Blue Nile River, a part of the Nile River Basin shared by 11 countries: Ethiopia, Sudan, South Sudan, Egypt, Rwanda, Tanzania, Uganda, Burundi, the Democratic Republic of Congo, Eritrea, and Kenya. Over time, the project became a symbol of national pride for Ethiopians, who helped fund it through local bond sales and contributions.
Despite the celebrations in Ethiopia, the project continues to create tension with Sudan and Egypt, both downstream Nile nations. Egypt relies on the Nile for more than 90% of its freshwater, and has long argued that the GERD threatens its water security.
Sudan, once cautiously supportive of the project, has also raised concerns about safety and the potential impact on its own dams. Both countries have pushed for international mediation, but negotiations have repeatedly stalled.
The dam is set to benefit the region by regulating the Nile’s flow, reducing floods, and offering cheaper electricity exports to Sudan, South Sudan, Djibouti, and beyond. But cooperation is key. Without clear agreements on water management, climate variability could turn the Nile into a flashpoint in already fragile regional politics.
