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

Published

2 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

Nigeria’s Bola Tinubu presents N27.5 trillion 2024 budget of ‘Renewed Hope’

Published

13 hours ago

November 29, 2023

Ifeoluwa Dada

Exactly six months after his inauguration, Nigeria’s President, Bola Tinubu, presented the N27.5 trillion 2024 budget proposal to a joint session of the 10th National Assembly in Abuja.

The president said, “The 2024 Appropriation has been themed the Budget of Renewed Hope” with intentions to achieve job-rich economic growth, macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction and greater access to social security.

“Defence and internal security are accorded top priority. The internal security architecture will be overhauled to enhance law enforcement capabilities and safeguard lives, property, and investments across the country,” he said in his presentation on Wednesday.

The budget also prioritizes human development, with particular attention to children, whom he called “the foundation of our nation”.

The Nigerian government under Tinubu has sought to stabilize the country’s economy with two major policy actions: the removal of petrol subsidies to address fiscal wastage, and the unification of the exchange rate. Although the policies have yet to positively impact standard of living, Tinubu insisted that the Nigerian economy had performed well in 2023 despite the challenges, and the government continued to meet its obligations.

According to him, “an aggregate revenue of 11.045 trillion naira was projected to fund the 2023 Budget of 24.82 trillion naira with a deficit of about 6.1% of GDP. However, as of September 30, the Federal Government’s actual aggregate revenue inflow was 8.65 trillion naira, approximately 96% of the targeted 8.28 trillion naira”.

Tinubu commended the legislature for its swift consideration and passage of the 2023 Supplementary Appropriation Bill and the 2024–2026 Medium-Term Expenditure Framework and Fiscal Strategy Paper last week. He noted that their “prompt action underscores your devotion to economic development and to the greater welfare of our people.”

Nigeria’s main revenue source is oil, but earnings have been affected by its industrial-scale theft, and dwindling global oil prices. However, it produced 1.49 million barrels of oil per day last month, the most in nearly two years, after increasing its output by 60,000 barrels per day.

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Nigeria’s Tinubu to present N27.5trn budget on Wednesday

Published

2 days ago

November 28, 2023

Ifeoluwa Dada

The Nigerian President, Bola Tinubu, will present the 2024 Appropriation Bill to a joint session of the country’s bicameral legislature, the National Assembly, on Wednesday.

The bill is an increase from the N26.01tn earlier considered by the council, according to the Minister of Budget and Economic Planning, Abubakar Bagudu, who confirmed the approval to State House correspondents after the close of FEC’s weekly meeting presided over by President Tinubu.

In addition, the minister disclosed that the government had projected N18 trillion in revenue for the fiscal year 2024. Bagudu stated that more information regarding the appropriation bill would be made public on Wednesday when the president brought it before a joint session of the National Assembly.

The minister stated that the Council was currently reviewing the Medium-Term Expenditure Framework, which was approved by the National Assembly.

Bagudu said, “Equally, the Federal Executive Council approved the 2024 Appropriation Bill and the presentation of such to the National Assembly by His Excellency, Mr. President.

“The bill has an aggregate expenditure of N27.5tn which is an increase of over N1.5tn from the previously estimated, using the old reference prices.”

He added, “The forecast revenue is now N18.32tn which is higher than the 2023 revenues, including that provided in the two supplementary budgets. Equally and commendably, the deficit is lower than that of 2023. Details of the Renewed Hope Budget will be announced by Mr. President when he makes the presentation to the National Assembly”.

With two key policy initiatives—halting the fiscal bleeding caused by petrol subsidies, and unifying the exchange rate—the Nigerian government, led by Bola Tinubu, has attempted to stabilise the economy of the nation. With its currency value declining even further and the cost of living rising sharply, the results have not been favourable.