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

Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

1 day ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.

VenturesNow

Dangote refinery begins petroleum sales to West Africa

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

In an indication to traders that the activities of its mega-refinery might soon disrupt regional fuel markets, Nigeria’s private Dangote Petroleum Refinery has started exporting refined petroleum products to neighbouring West African nations.

According to a Bloomberg story on Tuesday, a tanker had transported a consignment of petrol from the Dangote Petroleum Refinery to seas off the coast of Togo, a nearby West African nation. The article cited data from Vortexa, Kpler, Precise Intelligence, a port report, and a ship-tracking tool.

According to the source, a CL Jane Austen recently departed west after loading over 300,000 barrels from Dangote.

Recall that Mustapha Abdul-Hamid, the chairman of the Ghana National Petroleum Authority, stated last month that the nation is thinking of purchasing petroleum products from the Dangote refinery in order to reduce the approximately $400 million it spends each month on more costly exports from Europe.

Speaking at the OTL Africa Downstream Oil Conference in Lagos, the chairman of NPA, Ghana, said that by eliminating freight expenses, buying from Nigeria instead of Europe will lower the cost of other products and services.

“If the refinery reaches 650,000bpd a day capacity, all that volume cannot be consumed by Nigeria alone, so instead of us importing as we do right now from Rotterdam, it will be much easier for us to import from Nigeria and I believe that will bring down our prices,” Hamid said.

Two weeks ago, it was announced that the refinery would start exporting fuel to Namibia, Angola, and South Africa. Four more African nations—Niger Republic, Chad, Burkina Faso, and Central Africa Republic—had also begun talks with the refinery, it was said.

According to a very reliable source who spoke directly to one of our reporters, the management of the refinery with a capacity of 650,000 barrels per day was in the advanced stages of negotiations with the nations to begin lifting petroleum.

“I can confirm to you that talks are actually at the advanced stage with Ghana, Angola, Namibia, and South Africa, while the initial discussion is coming up with Niger, Chad, Burkina Faso, and the Central African Republic,” the source said.

The petroleum product shipment is currently floating off the coast of Lome, which is a well-liked location for ship-to-ship transfers, according to the source.

Furthermore, the final destination of the cargo of the CL Jane Austen is uncertain.

Despite being off Togo, the region is frequently utilised for ship-to-ship transfers, thus the gasoline may eventually be transported elsewhere.

“While the shipment is tiny in the context of the global gasoline market, it signals the ramp-up of Dangote’s production and the potential to export significant volumes of gasoline beyond Nigeria, which could upend regional markets.”

Last month, the refinery sent its first shipment of petrol by sea to Lagos, a neighbouring commercial centre.

Under the regulatory statute, the Federal Government last month terminated the state-owned oil company’s monopoly on purchasing gasoline from the plant for domestic use, but it has permitted the ongoing importation of fuel from the US and Europe.