A New Down for Africa

By Bereket Sysay

Today, Ethiopia reached a remarkable milestone in its extensive history as it inaugurated the Grand Ethiopian Renaissance Dam (GERD).  The completion of the GERD will signify a new chapter for Ethiopia and, more broadly, for Africa, offering vast economic prospects. This dam is the culmination of years of unwavering dedication from the Ethiopian government and its populace, representing a self-sufficient development initiative. Since its establishment 14 years ago, it has been clear that the dam would be built and financed by Ethiopian citizens, both domestically and internationally, without any external financial assistance. This goal has already been realized, which is truly commendable. Nearly every Ethiopian has played a role in the construction of this monumental dam, which is why its opening will be commemorated as a national holiday. The dam symbolizes hope for transformative change for all Ethiopians by facilitating sustainable development, a long-held aspiration of the nation.

Ethiopia has successfully undertaken and completed the construction of the dam by mobilising domestic resources. This endeavor has not been without its difficulties, as contributions have been made from limited incomes, despite the project's significant public importance. Additionally, Ethiopia has encountered considerable opposition from riparian countries during the construction of this vast dam. Nonetheless, the country remains resolute in its commitment to proceed in accordance with the principles of international water law. Egypt, in particular, has voiced criticism of Ethiopia based on antiquated colonial water agreements from 1929 and 1959, to which Ethiopia has never been a signatory.

Moreover, Ethiopia, along with other Nile Basin countries, has been successful in establishing the Nile Basin Commission, which was entrusted with governing the Nile water resources based on the principle of international water law. Against all challenges, Ethiopia has once again shown its resilience in the face of threats. The Grand Ethiopian Renaissance Dam (GERD) is a development initiative designed to transform Ethiopia into a strong economic nation, as energy is vital for promoting development. With a design capacity to generate approximately 5,150 MW of electricity, the GERD is set to become the largest hydropower facility in Africa. This energy could primarily alleviate Ethiopia’s current energy shortfall, impacting over millions of peoples, and cater to both industrial and domestic requirements. The GERD is poised to revolutionize Ethiopia’s energy landscape by supplying millions with clean, renewable electricity, and its importance goes well beyond mere power generation.

The dam is expected to stimulate economic activity in various sectors, including fisheries, recreation, and tourism, thereby generating extensive employment opportunities in Ethiopia. Furthermore, the Grand Ethiopian Renaissance Dam (GERD) presents considerable advantages not only for Ethiopia but also for adjacent regions and the entire African continent. Numerous analysts have pointed out that the energy deficit in Africa is a significant contributor to the continent's current economic challenges. Africa is grappling with critical energy shortages, with approximately 60 million individuals  nearly half of its population — lacking access to electricity. This energy deprivation represents a substantial barrier to economic advancement, education, healthcare, and overall quality of life. In this context, the Grand Ethiopian Renaissance Dam is set to play a pivotal role in resolving this long-standing issue. Any excess electricity generated could consequently be exported to neighboring countries such as Sudan, Kenya, Djibouti and Somalia.

This would facilitate regional energy integration and foster economic growth by energizing the manufacturing sector. The manufacturing sector serves as a fundamental pillar of economic development, making a significant contribution to a nation's GDP by producing goods for both domestic use and export. It also propels economic expansion through high-value output and productivity improvements. Manufacturing is among the most energy-intensive sectors, depending heavily on energy for processes such as heating, machinery operation, and goods transportation. Therefore, dependable and cost-effective access to energy, which the GERD will furnish to Ethiopia and other African nations, will enhance manufacturing productivity by energizing assembly lines, automation, and supply chains. By supplying affordable, renewable energy, the GERD will empower Ethiopia and its neighboring countries to shift from a consumption-driven economy to an export-oriented industrial economy.

The availability of this energy will draw investment into industrial parks and urban development, generating jobs and economic prospects that will extend across borders via trade and labor mobility. Besides, the GERD fosters fair and sustainable collaboration among the countries of the Nile Basin. By supplying clean, renewable energy, the dam lessens dependence on fossil fuels and aids in alleviating climate change impacts in the region. It also promotes sustainable development by tackling issues of water and energy scarcity. For the countries sharing the river, the GERD could play a crucial role in managing floods and sedimentation. The GERD regulates water flow, minimizing annual flooding and safeguarding Sudan from severe flood-related damage. It also manages siltation, thus lowering the expenses associated with dredging and maintaining infrastructure, particularly in Sudan. Furthermore, the GERD's positioning in the highlands of Ethiopia, where evaporation rates are reduced, diminishes water loss during storage. The storage capacity of the GERD ensures adequate water flow to Egypt, particularly in times of drought, serving as a safety mechanism.

Having recognized all these economic advantages, it is evident that the Grand Ethiopian Renaissance Dam (GERD) represents a transformative initiative with the capacity to enhance energy security, stimulate economic growth, and promote regional integration throughout Africa, while delivering concrete benefits. The dam also stands as a testament to Ethiopia’s sovereignty and its entitlement to utilize natural resources for national advancement. Ethiopia’s dedication to managing its natural resources in a sustainable and equitable fashion indicates a notable transformation in the region's geopolitical dynamics, which have historically been influenced by archaic colonial-era water agreements. As a self-funded development endeavor, the GERD is fostering the implementation of African-led solutions.

It establishes a benchmark for self-sufficient infrastructure projects, bolstering Ethiopia’s economic diplomacy and motivating other African nations to pursue similar ventures. A thriving Africa founded on inclusive growth and sustainable development can only be achieved if African nations are capable of expanding initiatives of this nature. Consequently, by constructing the GERD, Ethiopia is aiding in the fulfillment of Agenda 2063 and the regional strategies for economic integration. Nevertheless, Ethiopia's aspirations will not conclude here; it is determined to evolve into a developed and prosperous nation, as well as to witness a developed and prosperous Africa. Thus, it is essential for neighboring countries to seize the advantages of the GERD and collaborate to forge a brighter future. Furthermore, the economic prospects of Africa hinge on the establishment and execution of such large-scale projects. To realize this, nations across the continent must exert every effort to mobilize domestic resources, as this represents the most dependable mechanism for development financing. One crucial aspect we must not overlook is that Africa can only progress towards a brighter future if it shapes its own destiny.