Washington to cut US$100 million in aid to Ethiopia over dam dispute

The United States has decided to cut US$100 million from aid to Ethiopia, amid its dispute with Egypt and Sudan over a dam Ethiopia is building on the Nile.

“Up to US$100 million or so will be affected, of which $26m is funding that expires at the end of the [financial year],” a congressional source told Reuters.

Ethiopia, Sudan and Egypt have been locked in arguments over the filling and operation of the Grand Ethiopian Renaissance Dam (GERD), which remains unresolved although the reservoir behind the dam began filling in July.

Fitsum Arega, Ethiopia’s ambassador to the United States, said he had been informed of the US aid cuts.

“They told us the issue is a ‘temporary pause’,” Arega wrote on Facebook.

“The dam is ours. We will complete it through our efforts. Our Ethiopia will have a bright glow through our efforts,” he said.

A US Department of State spokesperson told the Associated Press news agency that the decision to “temporarily pause” some aid to a key regional security ally “reflects our concern about Ethiopia’s unilateral decision to begin to fill the dam before an agreement and all necessary dam safety measures were in place”.

Essential project

Ethiopia considers the hydropower dam essential for its electrification and development. Downstream, however, Egypt and Sudan view it as a grave threat to vital water supplies.

The US move came after the three countries failed to reach an agreement on the management of the dam following ten days of negotiations.

The State Department said commencing the filling of the reservoir before necessary safety measures were implemented “created serious risks for the populations of the downstream countries”, according to AFP news agency

It added that by continuing to fill the dam, Ethiopia was undermining confidence in the negotiations.

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