Tuesday, September 9, 2025 - Ethiopia has officially inaugurated Africa's largest hydroelectric project, the Grand Ethiopian Renaissance Dam (GERD), a $5 billion development on the Blue Nile that will supply power to millions and reshape regional dynamics.

The dam, which began partial operations in 2022, reached its full capacity of 5,150 MW on Tuesday, September 9, placing it among the 20 largest hydroelectric dams in the world. Ethiopia, with a population of over 120 million, sees the GERD as a cornerstone of its economic ambitions.

At the inauguration in Guba, Prime Minister Abiy Ahmed emphasized that the project was built to bring prosperity, electrify the region, and change the history of black people. He assured Egypt and Sudan that the dam was “not to harm its brothers.”

The reservoir, which covers an area larger than Greater London, is expected to stabilize water flow for irrigation and reduce the risks of floods and drought.

Egypt, however, remains concerned that the GERD could threaten its vital Nile water supply, especially during droughts. With the Nile providing about 90% of its fresh water, Cairo has repeatedly called for legally binding agreements on the dam’s filling and operation. Sudan has echoed Egypt’s demands but also stands to benefit from better flood control and access to cheaper electricity.

Despite initial fears, independent studies suggest no significant disruptions to downstream water flow so far, thanks to cautious reservoir management and favorable rainfall.

The GERD has become a symbol of national pride in Ethiopia, uniting a country long divided by internal conflicts. Most of the funding — 91% — came from Ethiopia’s central bank, with the rest raised through bonds and contributions from citizens.

For locals, the impact is already visible. “We now have refrigerators. We can drink cold water. We use electricity for everything,” said Sultan Abdulahi Hassan, a farmer living near the dam.

While urban areas enjoy widespread electrification, rural Ethiopia still lags behind due to weak transmission infrastructure. The government hopes the GERD’s surplus energy will eventually close that gap and boost industries, including the growing bitcoin mining sector.