Ethiopia has officially inaugurated the Grand Ethiopian Renaissance Dam (GERD) on Tuesday, September 9, 2025, Africa’s largest hydroelectric project, in a ceremony attended by several African leaders.

The $5 billion dam, located on the Blue Nile in Ethiopia’s Benishangul-Gumuz region, has a generation capacity of 5,150 megawatts, making it one of the continent’s most ambitious infrastructure projects. Ethiopian officials say the dam will address the country’s energy deficit, provide electricity for millions of households, and allow the country to export power to neighboring nations.

The inauguration comes amid growing tensions with Egypt, which depends on the Nile for 97 percent of its water needs. President Abdel Fattah al-Sisi called the dam an “existential threat” and vowed to take all measures under international law to protect Egypt’s water supply. Sudan has also voiced concerns, citing the lack of a legally binding agreement on the dam’s operation and water sharing. Ethiopia, however, maintains that the project is designed to benefit all Nile Basin countries without harming downstream nations.

Observers note that the GERD highlights the delicate balance between development and regional water security. While Ethiopia celebrates a major infrastructure milestone, the dispute with Egypt underscores longstanding geopolitical tensions over the Nile, a river that sustains millions of people in the region.