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The US State Department recently suspended $ 130 million in aid to Ethiopia due to “lack of progress” in negotiations related to the construction of the Great Ethiopian Renaissance Dam on the Nile River.
According to state department officials, the decision to cut aid came as a result of direct “guidance” from President Donald Trump.
Estimates show that almost half of Ethiopia’s budget is tied to foreign aid. The country relies on financial assistance to support its infrastructure projects, health care and education expansion efforts, and security sector reforms.
By suspending some of the aid, the United States has reopened the debate on whether developing countries should depend on foreign aid to achieve their economic goals.
The decision to suspend aid to Ethiopia comes after nearly 10 years of regional and international efforts to mediate the Egyptian-Ethiopian dam dispute. Almost 60% of Ethiopians do not have access to electricity. The Renaissance dam is critical to expanding energy sources across the country. The country will also export hydroelectric power to its neighbors.
Since construction of the dam began in 2011, Egypt has lobbied internationally to manage and slow down the process. The United States has sided with Egypt for Ethiopia.
The United States has openly pressured Ethiopia to accept some of the Egyptian demands, including extending the deadline to fill the dam. Such demands are unacceptable to Ethiopian scientists, who are warning the government that the time has come to fill the dam.
President Trump’s foreign policy strategy toward the dam and Ethiopia has evidently been biased. This despite the fact that more than 85% of the waters of the Blue Nile flow from Ethiopia into Sudan and Egypt.
Thanks to successful lobbying by Egypt, Ethiopia has never received international funding for the construction of the dam. Ethiopian taxpayers are paying the bill.
But in addition to direct financial contributions, Ethiopians are emotionally engaged. Ethiopia is a proud nation that has resisted foreign invasion throughout its history. That feeling of national pride has generated support across the country for the dam.
It serves America’s interests in the Middle East by siding with Egypt’s concerns. Unfortunately, Trump’s decision to oppose Ethiopia in the Renaissance dam dispute has two broad implications at the state and continental levels.
Impact for Ethiopia
Ethiopia has a huge unemployment problem that mainly affects young people. The country also experiences recurring droughts.
A large part of its economy depends on international financial support. Additionally, Ethiopia is home to the second highest population in Africa after Nigeria. The country is struggling to cope with an expanding demographic.
Therefore, Ethiopia needs outside help to support its development aspirations. This remains the case even as Prime Minister Abiy Ahmed steers the country towards financial independence and middle-income status.
The United States has traditionally been an ally. For example, the two countries have worked together to find solutions to the crisis in Somalia, Ethiopia’s southeastern neighbor. This latest decision to withhold aid could therefore be seen as a betrayal.
Ethiopia’s role in the international peacebuilding framework is significant. The country contributes 6,662 soldiers to the United Nations peacekeeping forces. It is only behind Bangladesh, which contributes 6,731. Ethiopia also contributes 4,300 soldiers to the African Union peacekeeping missions.
Historically, the country has been a beacon of anti-colonialism in Africa, as it has never been colonized. It serves as a symbol of independence and houses the headquarters of the African Union. Its capital, Addis Ababa, is recognized as one of the diplomatic centers of Africa.
Given its contribution to African affairs, Ethiopia should have received a fair and balanced treatment on the issue of the Renaissance dam. The United States’ approach should have been more supportive than interventionist.
Furthermore, despite an authoritarian past, successive Ethiopian regimes have played an important role in the region. The country has been actively involved in conflict resolution, economic cooperation, economic integration, and the persistent promotion of African causes.
This implies that many in sub-Saharan Africa will not appreciate the US decision to cut aid. Until now, the African Union continues to insist that an African solution to an African problem can be achieved.
Since the project began, Ethiopia has repeatedly shown an open and direct approach to engaging the downstream states of Sudan and Egypt. She has vowed to hold diplomatic talks to resolve a number of key issues. This includes mitigating drought through long-term operation of the dam.
Ethiopia’s leadership has also continued to insist that scientific facts and objective realities must take precedence over political considerations and nationalist rhetoric in the three countries concerned, especially Egypt.
African solidarity
According to a New York Times report, the United States’ commitment
… was an unusual example of Trump’s direct intervention on an issue in Africa, a continent he has not visited as president and rarely mentions publicly
In fact, Africa has not been high on Trump’s foreign policy agenda. His derogatory comments about Africa and people of African descent have in the past enraged Africans and blacks around the world.
The dispute over the Renaissance dam could have been an opportunity for the Trump administration to rectify past mistakes. There are signs that they will not seize the opportunity.
It’s no wonder that the United States is favoring Egypt over Ethiopia. The United States needs Egypt as an ally, since [navigates the politics in the Middle East]. But the fact is, the United States enjoys strategic benefits from both Egypt and Ethiopia.
By accepting US support, Egypt has shown that it would rather ally with the United States than rely on dispute resolution mechanisms within the continent. Furthermore, his use of the Arab League to make statements portraying the dam standoff as a challenge to Arab states undermines African calls to continue the discussion.
Next steps
Both Sudan and Ethiopia are experiencing historic floods. Sudan has received the worst of it.
Even Egypt is preparing for the floods. The Ethiopian dam did not cause the floods in Sudan. However, once up and running, the Ethiopian dam could prevent disasters such as floods in the Nile riparian states.
New reports show that were it not for the first filling of the dam, the floods that have been devastating Sudan would have been worse.
Climate forecasts also indicate that current water levels are optimal for filling the Renaissance dam. Filling it now would pose no threat to lower riparian states like Sudan and Egypt. Therefore, it is essential that the three countries accelerate the negotiation process.
The Renaissance dam will undoubtedly promote regional economic cooperation, expand job opportunities within Ethiopia, and support the manufacturing industry to continue producing goods without interruption due to power outages.
Therefore, it is incumbent on Ethiopia, Egpyt and Sudan to keep their eyes on the prize, which is lasting peace and future regional success.
Yohannes Gedamu, Professor of Political Science, Georgia Gwinnett College