Ethiopia has categorically denied assertions that the United States provided funding for its flagship hydroelectric dam on the Nile, calling such claims false and misleading. Officials in Addis Ababa insist the project was financed exclusively through national efforts and represents a rare case of large-scale infrastructure built without foreign backing.
The dispute has resurfaced after comments by US President Donald Trump suggested American involvement in the project’s financing.
Government Reaffirms Self-Financed Construction
Speaking before parliament, Prime Minister Abiy Ahmed stressed that Ethiopia did not receive any external loans, grants, or aid to build the Grand Ethiopian Renaissance Dam. He said the entire project was paid for through domestic taxation, public bond schemes, and voluntary contributions from Ethiopians at home and abroad.
According to the prime minister, the dam stands as a symbol of national unity and economic independence, achieved despite the absence of international lenders willing to support the project.
Energy Project at the Heart of Regional Debate
Construction of the dam began in 2011 and it is designed to generate more than 5,000 megawatts of electricity, making it the largest power plant of its kind in Africa. Ethiopian authorities view the facility as critical to expanding electricity access and supporting long-term development.
Downstream nations, particularly Egypt, have repeatedly voiced concern over the project, arguing it could threaten their water security. Ethiopia counters that the dam is strictly for power generation and does not permanently reduce water flows to neighboring countries.
Builders Dismiss Funding and Water Claims
The company responsible for constructing the dam has also rejected claims of foreign financing, stating that international lenders declined involvement from the outset. Project officials maintain that the dam releases water after electricity generation and does not consume or divert it for irrigation.
While Washington has expressed interest in reviving negotiations between Ethiopia and Egypt, Ethiopian authorities have not indicated whether they will re-enter mediation talks. For now, Addis Ababa continues to emphasize that the dam is a domestically funded project and rejects any suggestion of external financial control or influence.
