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The United States cut aid to Ethiopia by $ 100 million, amid a dispute with Egypt and Sudan over the Renaissance dam that Addis Ababa is building on the Nile. The United States Department of State declared that Secretary Mike Pompeo decided to suspend the aid “because of its unilateral decision to fill the Renaissance dam.” Pompeo explained that the decision to suspend aid to Ethiopia was led by President Donald Trump and due to the lack of progress in the negotiations.
A congressional source revealed to “Reuters” that the United States decided to cut $ 100 million in aid to Ethiopia. The source told the agency in an email that “the United States decided to cut aid” because of Ethiopia’s position on the Renaissance dam negotiations. “About $ 100 million or so will be affected,” the letter said, “including $ 26 million in funding, which is due at the end of the fiscal year.”
He said most of the funds that are about to expire are dedicated to regional security, border security, political competition, consensus building and nutrition. He added that funding for the fight against AIDS, the Food for Peace program, international disaster aid and aid for migration and refugees will not be affected. The dispute continues between Ethiopia, Egypt and Sudan over the method of filling and operating the Renaissance dam, and the dispute still exists despite the start of filling the reservoir behind the dam last July. The United States and Ethiopia have had a close relationship for a long time, as Addis Ababa has been working with US officials to counter armed groups in Somalia.
But US officials have been frustrated by their inability to seal the deal on the dam. Ethiopia says the $ 4 billion dam will generate electricity and help lift its 109 million people out of poverty. Upon completion, the dam will generate 6,450 megawatts of electricity, more than double Ethiopia’s current capacity, and is the cornerstone of the country’s bid to become Africa’s largest power source. But Egypt depends on the Nile for more than 90% of its freshwater supplies and fears that the dams will add to the current shortage.