Ethiopia has officially inaugurated the Grand Ethiopian Renaissance Dam (GERD), Africa’s largest hydroelectric project, even as tensions persist with downstream neighbours, particularly Egypt and Sudan.

The multi‑billion‑dollar project, launched in 2011, is designed to generate 5 150 megawatts. Two turbines are already operational, producing 750 megawatts. Prime Minister Abiy Ahmed said the dam would expand domestic access to power and enable Ethiopia to export surplus electricity across the region.

GERD was entirely financed domestically. The Commercial Bank of Ethiopia provided roughly 91 per cent of the project’s funding, around 223 billion birr, while the remaining 9 per cent, approximately 10 billion birr, came from public contributions, including bond purchases, donations, and voluntary support from citizens and institutions.

Downstream countries have responded with concrete actions. Egypt and Sudan issued joint statements criticising Ethiopia’s “unilateral” approach and sought international support, including from the United Nations. Both countries strengthened bilateral coordination, conducted joint military exercises, and asserted influence within the Nile Basin Initiative to shape water management decisions. Both have framed GERD as a national security issue, mobilising political and public support around potential risks to water and agriculture.

Ethiopia maintains that the dam is intended to ensure fair and equitable water distribution across the Nile Basin. Officials emphasise transparent coordination with neighbours and assert that GERD will not compromise downstream water security.

The completion of GERD also sets the stage for a new phase in regional diplomacy. Analysts suggest that while Egypt may continue to press for formal water-sharing agreements, the demonstration that Ethiopia can operate the dam without major disruption could open space for negotiation. Nevertheless, Cairo is likely to remain vigilant, seeking guarantees on the timing and management of water releases, particularly during drought periods.

GERD stands as a symbol of Ethiopia’s drive for electrification and economic growth, positioning the country as a potential regional energy hub. Full capacity is expected once the remaining turbines are brought online, with continued diplomacy critical to managing the Nile’s resources and sustaining regional stability.