Oh Dam! Let’s Talk Water
Ahhh yes, water, a very simple yet essential product to sustain life. However, there are still over 2.1 billion people globally that don’t have access to clean water. Most people rely on governments to provide access to and regulate water resources. Governments often use reservoirs through construction of dams as a way to ensure there is enough water for its citizens. Well, that’s what the Ethiopian government started doing through the Grand Ethiopian Renaissance Dam (GERD) project. GERD is a new hydroelectric dam that being built in Ethiopia, on the border of Sudan, that is projected to produce 6,000MW of power. This will help bring the country onto the grid as two-thirds of the population, over 75 million people, do not currently have access to electricity. Ethiopia also plans to sell the electricity to neighboring countries at more affordable rates. GERD will also help regulate water resources which would better control flooding and droughts. In addition, it will provide regulated water for Ethiopia’s agricultural industry which accounts for 40% of its GDP.
That all sounds great, so what’s the problem?
Well, there are 11 Nile basin countries with a combined population of over 280 million people that rely on the river as a water source. The Nile is also the only river that runs south to north and the Blue Nile, which begins in Lake Tana, Ethiopia converges with the White Nile in Sudan and flows upstream to Egypt. The Blue Nile provides 85% of overall river flow to the Nile and considering the flow of the water, GERD is mainly of concern to Egypt and Sudan. Egypt relies on the Nile for a significant majority of its water, and the agriculture industry, which is heavily reliant on water employs over 55% of people in Upper Egypt. There are also several scenarios of how filling the dam will affect Egypt, Sudan, and Ethiopia.
So, do any of the other countries involved have authority over the distribution of this shared natural resource?
Well, Egypt seems to think so. In 1929, Egypt signed an agreement with the British that gave them the right to veto projects on the Nile, in which Ethiopia was not a signatory. In 1959, Egypt and Sudan agreed to distribution percentages of the Nile, in which Ethiopia was not a signatory. In 1999, the Nile Basin countries signed an agreement on managing water which was compromised the following year when six of the countries made another agreement which Egypt rejected because it threatened its water allocation. Then in 2011, Ethiopia begins building GERD and tensions between the countries have been rising ever since. Recently, talks have been brokered by the African Union to come to an agreement, but so far an agreement hasn’t been reached. Furthermore, Ethiopia has begun filling the dam hitting the first year goal. What remains to be seen is if a shared water source can be allocated and used equitability while still sustaining all parties involved.
Saba Alemnew, Investment Associate
Remember the water crisis in Flint, Michigan? Well a recent study shows how the lead that seeped into tap water has affected the health and development of children in the city today. Learn more here.
Check out how this company is keeping water clean by creating a smart water meter that has technology that could have prevented the Flint, Michigan water crisis. Fun fact: It’s all manufactured in Ethiopia.
To learn more about how to create a ‘water-just’ world, check out this book.
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