Africa’s largest hydroelectric dam opens amid regional tensions over nile river waters

Ethiopia officially inaugurated the Grand Ethiopian Renaissance Dam (GERD) in September 2025, marking a historic milestone as Africa’s largest hydroelectric facility by capacity. The massive $5 billion project, stretching nearly 1.2 miles across the Blue Nile and capable of generating 5,150 megawatts of power, represents Ethiopia’s ambitious push toward energy independence and regional leadership.

The dam’s opening has intensified a decade-long diplomatic standoff between Ethiopia and downstream neighbor Egypt, which fears the project will reduce vital Nile water flows. Egyptian officials have accused Ethiopia of violating international water law, prompting former U.S. President Donald Trump to offer mediation services earlier this year. Despite these tensions, several East African leaders, including presidents from Kenya, Somalia, and South Sudan, attended the inauguration ceremony, signaling broader regional support.

The project promises significant economic benefits for the Horn of Africa region. Kenya has already secured a 25-year power purchase agreement with Ethiopia, beginning with 200 megawatts of renewable electricity and eventually scaling up to 400 megawatts – representing over 10% of Kenya’s current energy needs. A new 500-kilovolt transmission line will facilitate this cross-border energy trade.

Funded primarily through Ethiopian government resources and citizen contributions, with additional support from Chinese loans and investments, GERD symbolizes Africa’s growing capacity for large-scale infrastructure development. As Kenyan President William Ruto noted at the ceremony, the dam represents “Africa’s capacity to shape its own destiny” through transformative infrastructure projects that could reshape the continent’s energy landscape.