Ethiopia Calls on Egypt to Co-Finance Future Dams Amid Nile Dispute

November 6, 2026 | By Semahegn Nigatu

Ethiopia has called on Egypt to participate in financing and constructing future dams on Ethiopian territory, arguing that cooperation over Nile water development would serve the interests of both countries better than continued opposition.

Water and Energy Minister Habtamu Itefa (PhD) said Egypt should contribute to projects Ethiopia plans to develop along the Nile, including dams, rather than seeking to prevent upstream countries from using the river’s resources.

In an interview with Fana Media Corporation, the minister argued that Egypt’s opposition to cooperation among Nile Basin countries was based on the assumption that Ethiopia’s development plans would undermine its interests. He said such a position could ultimately harm Egypt more than Ethiopia.

“Egypt should be involved in building the dams Ethiopia constructs,” the minister said, arguing that joint investment in water infrastructure would allow the countries to share the benefits of development.

The proposal comes amid longstanding tensions between the two countries over the use of the Nile, particularly following the construction of the Grand Ethiopian Renaissance Dam (GERD) on the Blue Nile. Egypt, which relies heavily on the river for its freshwater supply, has repeatedly raised concerns about the potential impact of upstream projects on its water security. Ethiopia, meanwhile, maintains that it has the right to develop its water resources to meet the needs of its population and economy.

Itefa said Ethiopia would continue developing water infrastructure beyond the GERD, including additional dams intended to help regulate and maintain water levels. He added that the country would not wait for the approval of other states to develop and protect its water resources if cooperation remained elusive.

The minister also criticised Egypt’s position on the Cooperative Framework Agreement, which provides a framework for cooperation among Nile Basin countries. He said the agreement envisages joint understanding on projects undertaken within the basin, protection and development of water resources, and the exchange of information.

According to him, Ethiopia had sought cooperation under the framework, but Egypt had opposed the proposed arrangements.

The disagreement reflects a fundamental difference in how the two countries approach the Nile. Ethiopia, as an upstream country and the source of most of the water reaching the main Nile through the Blue Nile, has sought greater scope to develop hydropower and other water infrastructure. Egypt has traditionally defended arrangements that it considers necessary to protect its access to the river, viewing major upstream developments through the lens of water security.

Itefa said Egypt should reconsider its approach and take account of Ethiopia’s strategic interests as a country with a population of more than 130 million. He also argued that Cairo should support Ethiopia’s ambition to secure access to the Red Sea, describing it as a key national interest.

Source: FSX Business News