VenturesNow

Ethiopia: GERD dam comes on stream but Sudan, Egypt aren’t smiling. Here’s why

Published

3 years ago

March 3, 2022

The $4.2bn (£3.8bn) mega dam, located in the western Benishangul-Gumuz region, River Nile; Grand Ethiopian Renaissance Dam (GERD), has generated electricity for the first time.

The massive hydropower plant on the Blue Nile, owned by Ethiopia – on it’s commissioning – triggered a decade-long discord with Sudan and Egypt.

Sudan and Egypt say the mega-dam will cause severe water shortages downstream.

The $4.2bn (£3.8bn) dam, located in the western Benishangul-Gumuz region, has been a source of contention between Ethiopia, Egypt and Sudan since its construction started in 2011.

Prime Minister Abiy Ahmed officially inaugurated electricity production on Sunday from the mega-dam, saying the controversial multi-billion-dollar project “was built by Ethiopians but not only for Ethiopians, rather for all our African brothers and sisters to benefit from.

The move, Egypt condemned – believes is violating its obligations under the 2015 Declaration of Principles.

“The Ethiopian side has taken a further step in violating its obligations under the 2015 Declaration of Principles,” the Egyptian Ministry of Foreign Affairs said in a statement published on its Facebook page on Feb. 20. Cairo believes the unilateral measure will disrupt the Blue Nile, despite not having a direct impact on Egyptian water interests.

On the other hand, Sudan rejected what it described as a “unilateral step” by Ethiopia to begin electricity production from the GERD.

“Ethiopia’s decision to unilaterally begin operation of the GERD constitutes a violation to the Declaration of Principles signed by the three parties,” Sudan’s acting Irrigation and Water Resources Minister Daw Al-Bait Abdul-Rahman said in a statement.

“Before the move, the Ethiopian side should have provided the other parties with enough information, such as the volume of water expected to exit from behind the dam, to know if the Sudanese reservoirs would be able to absorb it to adopt the necessary precautions.”

Egypt, which has a rapidly growing population of more than 100 million, relies on the Nile for at least 90 percent of its freshwater.

Egypt – a predominantly desert, is most worried about the risk of drought conditions such as those that occurred in the late 1970s and early ’80s and has pushed for Ethiopia to fill the reservoir over a longer period if needed and guarantee minimum flows.

Meanwhile, the African Union (AU) has called for the United States, the European Union, and the United Nations to mediate directly.

The African Union had in 2020 discussed developments pertaining to the Grand Ethiopian Renaissance Dam (GERD).

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

15 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”