Built over 12 years, from 2011 to 2023, it has an installed capacity of 5.51 gigawatts, and will not only supply power to Ethiopia but will also make Ethiopia a net exporter of power to neighbouring nations like Kenya
Funding?
To fund this massive project, which costs about $5 billion, Ethiopia was forced to look inward due to significant opposition from Egypt, which argued that the dam would restrict the flow of the Nile River to Egypt. Egypt relies on the Nile for 90% of its water. Thus, Egypt pressured international donors not to fund the project
Thus, the government of Ethiopia was forced to look inward and tax its local institutions. The Central Bank issued “Renaissance Bonds” to Ethiopians in the diaspora and at home. Civil servants donated a part of their paychecks via direct debit, and these bonds were sold as a patriotic effort.
In terms of numbers, the Ethiopian government said in one year, 2023 to 2024, $21m was raised by Ethiopians, with $10m coming from the diaspora in three years. impressive
The Somalia Angle
An MP in the regional parliament, Abdifatah Hussein Abdi, significantly reported giving 3% to 4% of his salary to the GERD while working in the Jijiga region for over a decade. This is significant because Jijiga is the capital city of the Somali Region, Ethiopia, and its population is 82% ethnic Somali
Let’s explain further. In 1977, Somalia invaded Ethiopia, which ignited the Ogaden War. The war resulted from Somalia intervening to support an insurgency by the Western Somali Liberation Front (WSLF) in the Somali Region, which is the largest region in Ethiopia. The war ended in 1978, with Ethiopia defeating Somalia with Russian and Cuban help.
Thus, the central government has historically viewed the Somali region suspiciously, leading to economic underdevelopment. Yet when this dam was constructed the Ethiopian government sold this as a national patriotic project and it received donation to build this dam from even pollical members from the somail region. in june 2014, the Ethiopian-Somali Community in Stockholm held a fund raising event for the Renaissance Dam and Mustafa Mohammed, then-acting president of the Somali region, stated that the Somali people
would support the project in the same way as other Ethiopians.
“This is our dam”
Whilst the dam is impressive, what is more amazing is how Ethiopia used this dam to bring all Ethiopians together. The former rebels in the Somalia region contributed to this dam in their country, Ethiopia, the rich and poor also did, and today the Ethiopians have a dam, which, as a banner I saw during the commissioner said, “this is our dam”
About the Author
