Ethiopia wraps up construction of Africa’s largest hydro project
US$4.2bn Grand Ethiopian Renaissance Dam key to its power export ambitions
Photo source: Webuild
Ethiopia has completed construction of the Grand Ethiopian Renaissance Dam (GERD), a US$4.2bn hydroelectric project on the Nile River’s largest tributary that has long been a source of tension with downstream nations Sudan and Egypt. The dam, which is expected to be officially inaugurated in September, will eventually generate more than 5,000MW of electricity, making it Africa’s largest hydroelectric facility.
Work on the dam began in 2011. Its massive reservoir – roughly the size of Greater London – was fully filled in 2023. Electricity generation started on a limited basis in 2022, and output more than doubled last year after two additional turbines came online, bringing total generation capacity to 1,550MW.
GERD is located on the Blue Nile, which contributes about 85% of the Nile’s total flow. Egypt, which depends on the river for nearly all its freshwater, has warned that the dam could threaten its water supply. Cairo has accused Ethiopia of avoiding a binding agreement on dam management, including how much water would be released downstream during droughts.
In what appears to be an effort to calm tensions, Ethiopian Prime Minister Abiy Ahmed said he has invited Egypt and Sudan to attend the dam’s inauguration. He described GERD as a “shared opportunity” for regional development rather than a threat. Egypt, however, reiterated its opposition, accusing Ethiopia of lacking the political will to reach a comprehensive deal on water sharing.
Ethiopia’s current installed electricity generation capacity stands at 5,657MW, with about 90% coming from hydropower. The government aims to more than triple this to 17,500MW by 2030 through a mix of hydro, wind, geothermal, thermal and biomass projects. Among them is the Koysha hydropower dam on the Omo River, which will add 1,800MW once completed.
Beyond meeting domestic demand, Ethiopia views the GERD as a cornerstone of its ambition to become a regional power export hub. It has for several years supplied electricity to Kenya, Djibouti and Sudan, and more recently began exports to Tanzania. In a sign of growing demand, Kenya has recently requested to double its imports from Ethiopia to 400MW, citing increased industrial activity.
Beyond its scale, the GERD demonstrated that Ethiopia could mobilise domestic resources to finance a strategic national project, entirely without foreign loans. Over US$170m (23.6bn birr) was raised directly from Ethiopians and the diaspora through bonds, donations, and community campaigns, alongside an additional US$610.2m (84.4bn birr) in locally executed labour. Deputy Director Ms. Fikrte Tamir called it a “living victory”—a dam “funded, built, and defended by Ethiopians themselves.” In a region often dependent on external funding for large-scale projects, GERD now stands as both a vital asset and an example of how African nations can pursue major development goals through collective and locally led financing models.
References
‘Filling of Grand Renaissance Dam on the Nile complete, Ethiopia says’, Al Jazeera, 10 September 2023
‘Ethiopia says mega-dam doubles electricity output’, News24, 29 August 2024
'Final grid testing before Ethiopia exports electricity to Tanzania', ESI Africa, 06 January 2025
'Kenya requests double power imports from Ethiopia', APA News, 18 June 2025
'Ethiopia has finished building mega-dam on Nile, PM says', BBC, 03 July 2025
'X post', Office of the Prime Minister - Ethiopia, 03 July 2025
'Egypt says Ethiopia's completed power-generating dam lacks a legally binding agreement', The Independent, 04 July 2025
'X post', Egyptian Ministry of Water Resources & Irrigation, 04 Jul 2025
'Ethiopia completes controversial Nile dam, escalating dispute with Egypt', France24, 04 Jul 2025
‘Power generation’, Ethiopian Electric Power, Accessed 14 June 2025
‘GERD fully funded and built by Ethiopian people‘, Fana Media, 22 July 2025
