Ethiopia Inaugurates Africa's Largest Dam 'GERD' Amid Boycott From Neighbouring Countries — Here's All You Need To Know

Addis Ababa: Ethiopia officially inaugurated the $5 billion Grand Ethiopian Renaissance Dam (GERD), the largest in Africa, marking a milestone in the country’s decade-long quest for energy self-sufficiency.

Prime Minister Abiy Ahmed presided over the launch on September 11, announcing the completion of a project that fuelled years of regional disputes and realigned alliances across the Horn of Africa.

ኢትዮጵያ ማንሠራራት በጀመረችበት እና ታላቁ የሕዳሴ ግድብ በተመረቀበት ጊዜ ለሚከበረው አዲስ ዓመት እንኳን አደረሳችሁ።

ኢትዮጵያ በልጆቿ ጥረት
ታፍራና ተከብራ ለዘላለም ትኑር!!
ፈጣሪ ኢትዮጵያና ሕዝቦቿን ይባርክ!
ጳጉሜን 5 ቀን 2017 ዓ.ም pic.twitter.com/qtUtdgL5Nz

— Abiy Ahmed Ali 🇪🇹 (@AbiyAhmedAli) September 10, 2025

What Is GERD?

The GERD, a 1.8km wide and 145-metre-high hydroelectric dam on the Blue Nile near the Sudanese border, is designed to generate 5,150MW of electricity. This output will more than double Ethiopia’s current power generation capacity, in a country where nearly half of its 130 million people lack access to electricity.

The government expects to earn $427 million in export revenues this fiscal year, potentially rising to $1 billion annually by supplying power to Kenya, Tanzania and Djibouti.

Egypt and Sudan Boycott Inauguration

PM Ahmed said that the dam is “not a threat, but a shared opportunity” for downstream countries, Egypt and Sudan. However, both nations boycotted the inauguration and released a joint statement warning that the dam “breached international law”.

Egypt, which depends on the Nile for 97 percent of its water and receives the majority of its supply from the Blue Nile, has labelled the GERD an “existential” threat. Its longstanding concerns over water shortages, food security and the legality of colonial-era water treaties continue to dominate diplomatic exchanges.

Egypt has drawn a red line on the Nile. In a letter to the UN, Cairo rejected Ethiopia’s unilateral filling of the GERD & warned it may take “all measures under international law” a phrase that leaves every option, including military action, on the table. #GERD #Nile pic.twitter.com/9XzmvgdZ9L

— PNTVAfrica (@PNTVAfrica) September 9, 2025

The Red Sea Dispute

The GERD’s launch coincides with Ethiopia’s renewed push for access to the Red Sea. Landlocked since Eritrea’s secession in 1993, Ethiopia has sought maritime routes to ease dependence on Djibouti, which currently handles 95 percent of its trade. In January 2024, Ethiopia signed a controversial agreement with Somaliland, promising recognition in exchange for a 50-year lease to build a naval base.

The deal drew sharp rebukes from Somalia, Eritrea and Djibouti, making a rupture in their diplomatic ties. Egypt seized the opportunity to deepen security ties with Somalia and Eritrea, increasing pressure on Ethiopia. Turkey later mediated a partial reconciliation, but regional mistrust still remains high between the countries.

The GERD’s impact now extends far beyond hydropower, putting Ethiopia at the centre of a volatile geopolitical landscape in the Horn of Africa.