Ethiopian Prime Minister Abiy Ahmed on Wednesday called for renewed dialogue with Egypt and Sudan over the long-disputed Grand Ethiopian Renaissance Dam (GERD), asserting that the massive hydroelectric project on the Blue Nile will not harm downstream nations and will instead secure a stable water flow throughout the year.
Speaking in a televised address to parliament, Abiy said Ethiopia remains committed to peaceful engagement with its regional neighbors and emphasized the dam’s benefits to both upstream and downstream countries.
“The completion of GERD will not reduce water flow to Egypt or Sudan, but will rather regulate it and ensure a consistent supply throughout all seasons,” Abiy told lawmakers. “We call once again on our Egyptian and Sudanese brothers to join us in a constructive dialogue based on mutual respect and regional cooperation.”
Ethiopia maintains that the $4.6 billion GERD project, which is more than a decade in the making, is vital to its development ambitions and electricity needs. However, Egypt and Sudan have long raised concerns that the dam could significantly reduce their share of Nile waters and pose a threat to their water security.
Negotiations between the three nations have repeatedly stalled over issues related to water allocation, dam safety, and legal mechanisms for dispute resolution. The latest round of African Union-mediated talks collapsed late last year without reaching a binding agreement.
Red Sea Access ‘Must Be Achieved Peacefully’
Turning to broader regional dynamics, Abiy reiterated Ethiopia’s interest in securing access to the Red Sea, describing it as a matter of “existence.” However, he dismissed speculation about potential military action, saying that such goals must be pursued through diplomatic means.
“Access to the Red Sea is an existential issue for Ethiopia. But we will not achieve it through war or aggression,” he said. “Peaceful negotiation and regional integration are the only viable paths forward.”
Abiy’s remarks come amid heightened regional tensions, with observers closely watching Ethiopia’s relations with Eritrea, Djibouti, and Somalia, which all have Red Sea coastlines.
Tigray Peace Holds, Interim Administration to Be Replaced
Addressing domestic issues, the prime minister declared that there would be no return to conflict in Ethiopia’s war-scarred Tigray region and reaffirmed his government’s commitment to fully implementing the Pretoria peace agreement signed in November 2022.
“There will be no more war in Tigray,” Abiy said. “The interim administration has completed its mandate, and we will appoint a new leadership team until elections can be held.”
The two-year conflict in Tigray, which began in late 2020, displaced millions and led to thousands of deaths before the peace accord ended active hostilities. Implementation of the agreement remains fragile, with humanitarian concerns and questions over regional autonomy continuing to pose challenges.
Ethiopia Eyes 8.4% Economic Growth in 2025, Driven by Agriculture
On the economic front, Abiy projected that Ethiopia’s economy would expand by 8.4% in 2025, up from 8.1% growth in the first eight months of the current fiscal year. If achieved, it would mark one of the highest growth rates in Africa this year.
“Our economic momentum is driven by coordinated national efforts aligned with our 10-year development plan,” Abiy said. “Agriculture remains the backbone of this growth.”
The prime minister noted significant advances in the country’s wheat production, positioning Ethiopia among Africa’s top producers. The country cultivated 7.7 million hectares of wheat this year and expects a harvest of around 30 million quintals (3 billion kilograms).
Despite relying largely on small and medium-scale non-commercial farms, Abiy said government investment in agricultural mechanization—such as the importation of more than 500 machines—and improved irrigation systems have boosted productivity.
He also pointed to diversification efforts, including the prioritization of rice and oilseeds, which are intended to strengthen domestic food security and reduce import dependency.
Coffee Revenues Climb, Domestic Demand Rises
Ethiopia’s coffee exports have generated $1.2 billion in revenue so far this fiscal year, with officials forecasting a jump to $2 billion by year-end. Coffee remains the country’s most valuable export commodity, and Abiy said rising local consumption was contributing to the sector’s strength.
“Ethiopians are drinking more of their coffee, and this is a positive cultural and economic development,” he said.
Tea production has also grown, though Abiy acknowledged that processing infrastructure remains insufficient to capitalize on the gains.
