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China-Africa relations
ChinaDiplomacy

China’s allies at loggerheads over Ethiopia dam – will Beijing intervene?

  • Ethiopia has begun filling its Blue Nile reservoir against the wishes of Sudan and Egypt, which feared doing so could cause droughts
  • Beijing has investments in all three countries, including in electricity production under the dam project

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The Ethiopian project will establish Africa’s largest hydroelectric dam. Photo: AFP
Jevans Nyabiage
Beijing may not have directly funded the controversial US$4.6 billion Grand Ethiopian Renaissance Dam (GERD) across the Blue Nile, but it provided loans for related infrastructure and has an interest in a three-nation row over the project being resolved.

Ethiopia, Sudan and Egypt – the three countries in dispute over the dam’s construction – are key allies of China. Analysts say Beijing can use its diplomatic and economic influence to help ease tensions and find a lasting solution to the dispute.

On Wednesday, Ethiopian Prime Minister Abiy Ahmed confirmed that his country had achieved its target of filling the reservoir behind the dam with its first 4.9 billion cubic metres of water – days after its neighbours Sudan and Egypt raised objections against doing so.

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“The completion of the first round of filling is a historic moment that showcases Ethiopians’ commitment to the renaissance of our country,” Ahmed said.

China is neither directly funding the dam nor is it playing an official role in mediation talks taking place through the African Union (AU), but it wields a lot of diplomatic and investment clout in the three countries.

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Chinese companies and banks funded the main transmission line from the dam that will supply electricity to neighbouring towns and cities, and other Chinese companies are subcontractors for the project.

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