EIB Global Partners with Ethiopian Banks to Unlock Climate Finance

EIB Global Partners with Ethiopian Banks to Unlock Climate Finance The European Investment Bank’s development arm, EIB Global, has signed technical assistance agreements with Zemen Bank SC, Dashen Bank SC and Hibret Bank in Ethiopia that will support them in strengthening their ability to identify, assess, and manage climate-related risks, integrating them into their business strategies and daily operations. The banks will be better equipped to assess how climate change could impact their clients and encourage investments that strengthen their resilience against extreme weather events such as floods and droughts. In addition, banks’ capacities are strengthened to analyse impacts of changing international climate policies on businesses and export-dependent industries. The collaboration will also assist the participating financial institutions in developing sustainable financing and advisory strategies to expand green lending, thus supporting Ethiopia to achieve a sustainable, net-zero economy by 2050, as outlined in its Long-Term Low Emission Development Strategy. The announcement was made during a signing ceremony between EIB Global and the three local banks on the sidelines of the second edition of the Africa Climate Summit underway in Ethiopia’s capital, Addis Ababa. The operation is the first of its kind in Ethiopia and is being implemented under the European Investment Bank’s Greening Financial Systems Programme, financed by the German government through the dedicated International Climate Initiative (IKI Fund) and closely coordinated with the NDC Partnership The partnerships with Zemen, Dashen and Hibret come on the back of a recent Memorandum of Understanding (MoU) between EIB Global and National Bank of Ethiopia to strengthen their co-operation and support for Ethiopia’s green development objectives through technical and financial support. The GFS programme with National Bank of Ethiopia entails developing a national green taxonomy to guide sustainable investments. This aims to ensure that the country’s financial sector can effectively manage climate related risks and increase financing for green investments. EIB Head of Representation to Ethiopia & the African Union, Leyla Traoré said, “Financial institutions play a critical role in addressing climate related risks and directing financial flows to zero carbon and climate resilient projects across various sectors of the economy. Our climate action goals are unwavering and through EIB Global’s partnership with Ethiopian banks, we aim to contribute to the building of a more climate resilient financial system and support the country achieve its Nationally Determined Contributions (NDCs) towards the Paris Agreement goals.” Germany’s State Secretary at the Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety, Jochen Flasbarth said, “Transforming the global financial system and aligning financial flows with the goals of the Paris Agreement is critical to meeting the challenges of the 21st century. This includes addressing climate risk for the financial system and supporting sustainable, inclusive growth. Governments, regulators, central banks, and private finance all have a significant role to play in order to drive the transition and safeguard long-term financial stability. The International Climate Initiative (IKI) Germany is supporting initiatives such as the EIB’s Greening Financial Systems programme to help building climate aligned financial systems and shaping resilient, sustainable financial systems that serves the people.” Zemen Bank is a private commercial bank that began operations in 2008 and has 132 branches and over 1900 employees working across Ethiopia. Commenting on the technical assistance agreement, Dereje Zebene, CEO of Zemen Bank, highlighted that the technical assistance will equip the Bank in achieving its strategic objectives of aligning its financing activities with climate resilience investments. “For Zemen, this is an important step towards ensuring compliance with national sustainability requirements and related disclosures as outlined in the newly announced Corporate Governance Directive, which includes several mandatory sustainability requirements.” “This engagement will provide the bank the opportunity to understand the impact of climate risk and work towards green financing through diversification of its portfolio to include green products. It will also strengthen our efforts to support the sustainable development goals,” he added. Hibret Bank was established in 1998 as the fifth private bank in Ethiopia and has currently 496 branches and over 5,600 permanent employees countrywide. Hibret Bank’s CEO, Mr. Negusu Gebre Egziabeher stated, “Hibret Bank emphasises the importance of integrating Environmental, Social, and Governance (ESG) principles into its banking business not only for ethical reasons, but it also ultimately benefits the company’s long-term success. Hibret Bank has also initiated an ESG Policy in late 2022 as part of its endeavour for supporting sustainable projects and practices. The cooperation agreement with EIB is a demonstration to our Bank’s commitment to ESG and the principles of ethical banking. And we are grateful to EIB for the availed technical assistance on sustainable financing. We believe the technical assistance will give us a leverage to achieve our long-term goals as a Bank and support the sustainable growth of Ethiopia as a nation.” Dashen opened its doors in January 1996 and currently has 906 branches with 60% of them outside Addis Ababa. The bank also employs over 11,000 permanent staff. The CEO of Dashen Bank, Asfaw Alemu said, “We are delighted to partner with EIB Global on this important initiative. This initiative is a significant step in equipping the bank’s team with the knowledge and tools needed to identify, assess, and manage climate risks effectively, while also creating new opportunities to support sustainable development through green financing and thereby positively contributing to our people and planet. We are committed to reduction of own greenhouse gas emissions, enhancing engagement on inclusive financing for SMEs, Women, Youth and overall underserved parts of the community.” Climate Financing Landscape in Ethiopia Being one of Africa’s largest and fastest growing economy, Ethiopia has shown a strong commitment to being a middle-income country. It has established a policy landscape coupling economic growth with climate change action. Ethiopia’s ambitious climate targets are focused on ensuring low-carbon energy development, conservation of its vast forest reserves, and practicing climate smart agriculture, while mainstreaming adaptation and resilience as a key priority. As outlined in the EIB Global’s Finance in Africa Report 2024, offering climate products to clients or issuing green bonds on financial markets remain the exception rather than the rule for banks in sub-Saharan Africa. This is contributing to a shortage of climate finance on the continent, making the region highly reliant on international sources. Climate-related financial flows to Africa represent only 12% of the annual climate financial flows the continent needs to implement nationally determined contributions and meet its 2030 climate goals. Multilateral development banks have a crucial role to play in supporting domestic market development and attracting domestic financing if Africa is to catalyse private climate financing and meet its climate finance needs. Ethiopia’s parliament recently passed a long-awaited legislation opening up the country’s banking sector to foreign players. The government hopes it will attract foreign investment into the country that has set out ambitious climate targets. The technical assistance program between EIB Global and Ethiopia is the third on the continent, with similar programmes ongoing with Central Bank of Kenya and the country’s commercial banks and another with Bank of Kigali in Rwanda. EIB Global is in the process of talks to extend the programme to other parts of Africa including West Africa Monetary Union, Nigeria, Morocco, Egypt and Uganda. Background information About the EIB: The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner in Global Gateway. We aim to support €100 billion of investment by the end of 2027, around one third of the overall target of this EU initiative. With Team Europe, EIB Global fosters strong, focused partnerships, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to people, companies and institutions through our offices around the world. About the Greening Financial Systems TA Programme: The EIB Greening Financial Systems TA Programme is funded by the International Climate Initiative (IKI) on behalf of the German Federal Ministry of Economic Affairs and Climate Action (“BMWK”).  The Programme is BMWK’s and EIB’s joint contribution to the work of the NDC Partnership specifically, the “Readiness support for greening central banks” initiative.   Since 2008, the IKI has supported over 1000 climate and biodiversity projects in approximately 150 partner countries with a total of almost €7.5 billion. About Hibret Bank: Hibret Bank is one of the pioneer private banks in Ethiopia. Hibret is founded with the underlying rationale that values diversity. The founding shareholders were enterprising Ethiopians from all walks of life that combined and committed their resources to establish the Bank. The name “Hibret” is an Amharic word for collaboration and synergy. The Bank was incorporated as a Share Company on 10 September 1998 GC. Over the years, Hibret Bank has built a reputation for providing innovative financial solutions to the Ethiopian Banking industry. Furthermore, the Bank’s transformational strategy 2030 is implemented to build a strong financial structure and a mutually benefiting “Eco-system” for customers, strategic partners and stakeholder. Currently, the Bank has a paid capital base of Ethiopian Birr (ETB) 8 billion, an asset size of ETB 107 billion and having its presence in all corners of the country while ensuring digital financial inclusion through innovative financial solutions. About Zemen Bank SC: Zemen Bank S.C., established in 2008, is an innovative financial service provider in Ethiopia that has distinguished itself through a unique business model and modern banking services. Its mission is to deliver unique financial experience, engaging work environment and sustainable value for all our stakeholders using empowered workforce and technology, in a socially responsible manner. Its vision is to become a home of distinctive financial solutions and service excellence. Zemen Bank is known for its robust financial performance, commitment to technology, and customer-focused approach. Zemen Bank prioritizes innovation and efficiency in its services. This enabled it to contribute meaningfully to Ethiopia’s economic development and the evolving banking landscape. About Dashen Bank: Dashen Bank, opened doors for customer service in January 1996, has emerged as a leading private banking institution in Ethiopia, renowned for its commitment to delivering exceptional value. With a network of over 900 branches, the bank aims to expand its influence across Africa, aspiring to be recognized as the “Best in Class Bank in Africa.” Dashen Bank has earned its reputation through strategic partnerships with top electronic payment brands and by being the first Ethiopian Bank to offer a comprehensive payment card service, partnering with AMEX, VISA, MasterCard, and Union Pay. In addition to its conventional banking services, Dashen Bank provides a full suite of Shariah-compliant, interest-free banking solutions known as ‘Sharik’. These services are managed by a dedicated Shariah Advisory Committee, ensuring adherence to interest-free banking principles. Dashen Bank continues to innovate and enhance its offerings, positioning itself as a trusted financial partner for both individual and business customers in Ethiopia and beyond. Press contacts: EIB: Harriet Ongaki, [email protected]  Tel: +254 114106871/ +254 729467795 Website: www.eib.org/press — Press Office: +352 4379 21000 — [email protected] Hibret Bank: Hiwot Alemayehu, [email protected]. Website: www.hibretbank.com.et Ras Abebe Aregay Street, Hibir Tower Contact center: 995 | Tel:+251 114 655 222 Fax:+251 114 655 243 | Email: [email protected] SWIFT: UNTDETAA | P.O.Box: 19963 Addis Ababa, Ethiopia Zemen Bank: Girum Tariku, [email protected] Director, Marketing & Corporate Communications Tel: +251 116 686 878 www.zemenbank.com Dashen Bank: Ato Ermias Tilahun, [email protected] Senior Manager Public Relations Mobile number +251911333082

Why the GERD Dam Should Be a University Course: Lessons Across Disciplines

Why the GERD Dam Should Be a University Course: Lessons Across Disciplines When Ethiopia completed the Grand Ethiopian Renaissance Dam (GERD) in 2025, it built far more than Africa’s largest hydropower facility. It created a living classroom—a case study that touches on engineering, economics, political science, hydrology, climate, fisheries, and even tourism. GERD represents the convergence of technology, geopolitics, and society, making it an ideal subject for a university-level interdisciplinary course. 1. Political Science & Geopolitics: Water as Power GERD sits at the center of Nile geopolitics. Egypt, Sudan, and Ethiopia have long contested the river’s waters, with GERD transforming Ethiopia from a lower riparian state into an upstream powerbroker. Studying GERD introduces students to: Hydro-politics and conflict resolution: Lessons in negotiation, mediation, and African Union diplomacy. International law: Debates over transboundary water rights and treaties like the 1959 Nile Agreement. Security studies: How infrastructure can shift the balance of power in a region. Suggested course module: “Water Wars and Cooperation: GERD and the Politics of the Nile.” 2. Hydrology & Environmental Science: Managing a Mighty River Hydrologically, GERD is a laboratory in river basin management. With a reservoir of 74 billion cubic meters, it raises complex questions: Sediment management: The Blue Nile carries some of the world’s heaviest silt loads. Flood control & drought resilience: GERD can reduce destructive floods but also influence downstream flow during dry years. Ecological impacts: Lake Nigat has created new aquatic ecosystems, while altering traditional riverine environments. Suggested course module: “Hydrology of Mega-Dams: GERD and the Blue Nile Basin.” 3. Engineering & Infrastructure: Mega-Project Case Study For engineers, GERD is a masterclass in modern dam construction: Design: A 170-meter-high roller-compacted concrete structure, one of the largest of its type. Power generation: 13 turbines with a capacity of 5,150 MW, making GERD one of the top 10 hydropower projects globally. Construction logistics: 14 years, $5.2 billion, and 10,000 workers annually. It highlights civil, structural, and electrical engineering on a continental scale. Suggested course module: “Mega-Engineering: Building the GERD.” 4. Fisheries & Aquatic Life: New Economies on Lake Nigat The creation of Lake Nigat has opened new possibilities for fisheries and aquaculture: Potential for new livelihoods through fishing cooperatives. Risks of invasive species and biodiversity imbalance. Comparisons with fisheries on reservoirs like Lake Volta (Ghana) and Lake Nasser (Egypt). Suggested course module: “Fisheries and Reservoir Economies: The Case of Lake Nigat.” 5. Tourism & Cultural Geography: GERD as a Destination Beyond electricity, GERD and Lake Nigat have tourism potential: Eco-tourism around the vast artificial lake. Educational tourism—GERD as a site of scientific and engineering visits. National symbolism—GERD as a pilgrimage of pride for Ethiopians. Suggested course module: “Infrastructure and Tourism: GERD as a Cultural Landmark.” 6. Climate & Sustainability: Green Energy in Africa GERD prevents the release of 2 million tons of greenhouse gases annually, positioning Ethiopia as a leader in renewable energy. A course would explore: Hydropower’s role in climate mitigation. Reservoir-induced microclimate changes. Trade-offs between sustainable energy and ecological costs. Suggested course module: “Climate and Energy: GERD in the Global Green Transition.” 7. Economics & Development: Powering Prosperity At an estimated $1 billion annual revenue from power exports, GERD is central to Ethiopia’s development strategy. Students can analyze: Cost-benefit economics of mega-projects. Financing models: GERD was self-financed through Ethiopian bonds and citizen contributions. Regional integration: How electricity exports reshape East Africa’s economy. Suggested course module: “Economics of Mega-Infrastructure: GERD’s Developmental Promise.” Suggested Course Titles “The Grand Ethiopian Renaissance Dam: Power, Politics, and Progress” “GERD and the Nile Basin: An Interdisciplinary Study” “Engineering Africa’s Future: The Case of the GERD” “From Water to Wealth: The Multidimensional Lessons of GERD” “Dam Diplomacy: GERD and the Future of African Development” Why GERD as a Course Matters GERD is not just a dam; it is a 21st-century case study that integrates: Science and engineering (how to build it), Politics and law (who owns the water), Economics and society (who benefits), Environment and climate (who adapts). By teaching GERD as a standalone interdisciplinary course, universities can train the next generation of African leaders, engineers, and policymakers to think holistically about development—where infrastructure is never just technical, but deeply political, social, and ecological.

Lake Nigat: Africa’s Newest and Largest Man-Made Lake

Lake Nigat: Africa’s Newest and Largest Man-Made Lake When Ethiopia completed the Grand Ethiopian Renaissance Dam (GERD) this year, it didn’t just build Africa’s largest hydropower facility—it also gave birth to a vast, entirely new lake. Known as Lake Nigat, this reservoir is one of the largest artificial water bodies in the world, stretching 246 kilometers in length and holding up to 74 billion cubic meters of water. For Ethiopia, Lake Nigat is more than a byproduct of engineering—it is a new inland sea, a landscape-altering feature that will shape ecology, livelihoods, and geopolitics for generations. The Birth of a Lake Lake Nigat lies in the Benishangul-Gumuz region, formed by the impoundment of the Blue Nile behind GERD’s towering 170-meter concrete wall. Unlike Ethiopia’s ancient rift valley lakes—such as Tana, Ziway, and Awassa—Nigat is a creation of modern infrastructure. Its filling process began gradually in 2020, amid global scrutiny and tense regional negotiations. With every meter the dam rose, the Nile’s flow slowed, and the waters crept higher into the valley. By 2025, with construction complete, Lake Nigat had reached its full design capacity, permanently submerging entire valleys and altering the course of the river. Scale and Significance To grasp the enormity of Lake Nigat: At 74 billion cubic meters, its storage is roughly 1.5 times the volume of Lake Tana, Ethiopia’s largest natural lake. Its surface length of 246 km makes it longer than many natural lakes in Africa. It is large enough to visibly appear from space, joining the ranks of Africa’s great reservoirs such as Lake Nasser (Egypt) and Lake Kariba (Zambia–Zimbabwe). Yet unlike those lakes, Nigat sits at the heart of a country where the very act of creating it carried profound symbolic and political meaning. Environmental Transformation The emergence of Lake Nigat has transformed the surrounding environment: Microclimate shifts: Large reservoirs often influence local weather patterns, increasing humidity and moderating temperature extremes. Early signs suggest Lake Nigat may already be altering rainfall in its immediate vicinity. Wildlife impacts: Aquatic ecosystems are forming where none existed before. Fish populations are expected to develop, potentially offering new sources of protein and livelihoods. But questions remain about biodiversity loss from inundated forests and farmlands. Sedimentation and water quality: The Blue Nile carries one of the world’s heaviest silt loads. How Lake Nigat manages sedimentation will determine its longevity and ecological health. Human Dimensions Thousands of people who once lived along the riverbanks were resettled to make way for the rising waters. This has sparked both economic opportunity and social strain: Resettlement villages now depend on government support, but also benefit from new infrastructure and electrification. Fishing economies are emerging around the lake, with potential to rival those around Lake Tana. Tourism potential looms large: with its dramatic setting between highlands and forests, Lake Nigat could become Ethiopia’s next eco-tourism frontier. But managing expectations is crucial. Experiences from Lake Volta in Ghana and Lake Nasser in Egypt show that such reservoirs can bring mixed fortunes if not accompanied by strong local development planning. Strategic Reservoir Lake Nigat is not just a lake—it is a strategic water reserve. By regulating flows of the Blue Nile, Ethiopia now wields significant influence downstream: In times of drought, careful releases from Nigat can stabilize flows to Sudan and Egypt. In times of flood, the reservoir acts as a buffer, reducing destructive inundations. For Ethiopia, it is a guarantee of hydropower stability, allowing turbines to run even when seasonal flows decline. This strategic importance is why Lake Nigat sits at the heart of Ethiopia’s regional negotiations with Egypt and Sudan. It is not merely a lake but a geopolitical lever. Symbol of Sovereignty Above all, Lake Nigat is a symbol of national pride. Unlike foreign-funded mega-dams across Africa, GERD—and thus Nigat—was largely self-financed through Ethiopian contributions. The lake’s very existence reflects the sacrifices of millions who bought bonds, donated salaries, and endured economic strain for the sake of the project. In Ethiopian folklore, lakes have long been associated with power and mystery. Lake Nigat, though artificial, now joins this pantheon—a modern myth born of concrete, steel, and collective will. The Future of Lake Nigat The next decades will determine whether Lake Nigat becomes a sustainable national asset or an underutilized body of water. Key questions remain: Will Ethiopia develop fisheries, tourism, and irrigation schemes to maximize local benefits? Can sedimentation be managed to preserve storage capacity over the long term? Will the reservoir’s operation be integrated into a regional water-sharing framework that balances Ethiopia’s development with downstream needs? For now, Ethiopians celebrate not only the turbines of GERD but also the shimmering expanse of Lake Nigat—a testament to ambition, resilience, and the creation of a new chapter in the story of the Nile.

GERD to Generate $1 Billion a Year: Ethiopia’s Energy Ambition Realized

GERD to Generate $1 Billion a Year: Ethiopia’s Energy Ambition Realized September 8, 2025 Ethiopia has formally completed the construction of the Grand Ethiopian Renaissance Dam (GERD), marking the conclusion of a 14-year national endeavor that has reshaped the country’s economic trajectory and regional influence. With an installed generation capacity of 5,150 megawatts (MW) and an expected annual output of 15,700 gigawatt-hours (GWh), the GERD is set to generate more than $1 billion in annual revenue, positioning Ethiopia among Africa’s foremost energy exporters. Engineering Feat: Africa’s Largest Hydropower Project Rising 170 meters high on the Blue Nile in Benishangul-Gumuz, the GERD is Africa’s largest dam and one of the most ambitious hydropower plants in the world. Its main reservoir, capable of storing 74 billion cubic meters of water, has created Lake Nigat, a 246-kilometer-long body of water that will permanently alter Ethiopia’s riverine landscape. To put its scale into perspective: The GERD surpasses Egypt’s Aswan High Dam in electricity generation. It outpaces the Hoover Dam in the United States, long considered an engineering marvel. Though smaller in water storage than Zambia’s Kariba Dam, its generation efficiency makes it far more significant in power output. The plant’s 13 turbines will prevent an estimated 2 million tons of greenhouse gas emissions annually, aligning Ethiopia with global climate commitments while accelerating the continent’s renewable transition. Financing a National Dream Unlike most mega-infrastructure projects in Africa that rely on foreign loans, the GERD is notable for being self-financed. The project, estimated to cost over $5.2 billion, was largely paid for through domestic bond sales, voluntary salary contributions, and public fundraising campaigns. This unique financing model fostered unprecedented national ownership. Over the years, an average of 10,000 Ethiopian workers annually contributed to the dam’s construction. For many Ethiopians, GERD became more than a power project—it symbolized self-reliance, dignity, and a rejection of aid dependency. Economic Promise: Energy Security and Export Potential Ethiopia’s electricity demand has grown rapidly in line with industrialization and urbanization. Prior to GERD, the country’s installed generation capacity hovered around 4,500 MW, often insufficient to meet both domestic and industrial needs. GERD nearly doubles Ethiopia’s generation capacity, ensuring: Energy security for households and factories. Reliable power for industrial parks, which anchor Ethiopia’s manufacturing strategy. Reduced reliance on fossil fuels, saving foreign currency. Crucially, the dam is expected to yield over $1 billion annually in foreign exchange earnings from electricity exports. Ethiopia already supplies power to Sudan, Djibouti, and Kenya, and with GERD, plans to extend exports to Tanzania, Uganda, and possibly Egypt through regional interconnection grids. Regional Geopolitics: Between Cooperation and Contestation From its inception, GERD was more than an engineering project—it was a geopolitical flashpoint. Egypt, heavily dependent on the Nile for freshwater, expressed concern that Ethiopia’s dam could threaten its water security. Sudan’s position oscillated between skepticism and cautious support. Despite years of African Union-mediated negotiations and at times sharp diplomatic disputes, Ethiopia maintained that GERD is an existential project, central to poverty reduction and economic sovereignty. Now that the project is completed, Ethiopia’s leverage in regional power politics has visibly increased. The focus is gradually shifting from confrontation to regional cooperation on energy trade. Social and Environmental Dimensions While GERD is celebrated as a national triumph, it has also reshaped lives and landscapes: The creation of Lake Nigat displaced thousands of local residents, raising questions of compensation and resettlement. Downstream ecological impacts remain uncertain, though Ethiopia insists that careful water release management will mitigate risks. On the positive side, GERD represents a major contribution to Africa’s green energy transition, displacing the equivalent of several fossil-fuel power plants. Ethiopia’s Energy Future Completion of GERD is both an end and a beginning. It concludes a 14-year construction saga but inaugurates a new era in which Ethiopia transitions from a power-deficient country to a regional energy hub. The challenge ahead lies in: Strengthening transmission lines to ensure electricity reaches all corners of Ethiopia. Expanding regional interconnections to fully monetize export potential. Balancing environmental and social impacts with the country’s development goals. For Ethiopia, GERD is more than a dam—it is the materialization of an ambition to transform economic destiny with its own resources. As electricity begins to flow from its turbines, the promise of over $1 billion in annual revenue represents not just financial gain but a powerful symbol of sovereignty, resilience, and future prosperity.

Addis Ababa Witnesses Rare Blood Moon

Addis Ababa Witnesses Rare Blood Moon Addis Ababa, Ethiopia — On Sunday night, the Ethiopian capital looked skyward as a rare astronomical drama unfolded. The full moon, usually a silver sentinel above the highlands, turned an otherworldly crimson. The phenomenon, known as a blood moon, is the result of a total lunar eclipse — a celestial alignment of the Sun, Earth, and Moon that transforms the familiar lunar disc into a deep shade of red. While Addis Ababa offered a perfect vantage point, the eclipse was not confined to Ethiopia. Large swaths of Africa, the Middle East, and parts of Europe and Asia shared the same spectacle, each witnessing the crimson glow as the Earth’s shadow engulfed the Moon. What made it striking for Addis Ababa was the timing and visibility: the entire sequence, from the first shading to the deep red totality, unfolded cleanly overhead. The Science Behind the Glow At the heart of the spectacle is Earth’s shadow. When the planet positions itself directly between the Sun and the Moon, the lunar surface falls into darkness. But rather than vanishing, the Moon glows red. The reason lies in Earth’s atmosphere. As sunlight skims the edges of the planet, gases and particles scatter shorter wavelengths like blue and violet — the same process that paints the daytime sky azure. What survives are the longer red and orange wavelengths, bent around Earth and projected onto the Moon’s surface. The exact hue depends on atmospheric conditions: a dust-laden sky can produce a brick-red eclipse, while cleaner air yields a brighter copper glow. Perfect Viewing from Addis Unlike solar eclipses, lunar eclipses are both safe and leisurely to observe. Tonight’s event was visible in its entirety across Addis Ababa — from the faint penumbral shading to the fiery totality at its peak. Binoculars revealed cratered landscapes softened by shadow, while telescopes delivered close-up views of maria glowing faintly under the refracted sunlight. A Global Event Although Addis Ababa residents marveled at the crimson orb, the blood moon was visible far beyond Ethiopia. Observers from Cairo to Cape Town and from Istanbul to Mumbai caught their own version of the spectacle, depending on cloud cover and local timing. The eclipse was part of a global performance — a reminder that while location shapes perspective, the cosmos unites distant cities under the same sky. A Celestial Pause The blood moon’s glow will fade by dawn, but for a few hours Addis Ababa — along with millions across continents — joined in witnessing a spectacle as old as human curiosity. In a world often defined by urgency and division, the eclipse was a rare moment of shared wonder, reminding all who looked up that Earth is but one player in a much larger celestial dance.

Who’s Coming for GERD Inauguration? 10+ African-Caribbean Leaders Expected

Who’s Coming for GERD Inauguration? 10+ African-Caribbean Leaders Expected Ethiopia’s GERD Inauguration Puts Guba on the Diplomatic Map — and to the Test Addis Ababa / Guba, Benishangul-Gumuz — Ethiopia’s government is preparing for the most high-stakes event in its recent history: the official inauguration of the Grand Ethiopian Renaissance Dam (GERD) on the Blue Nile. The ceremony, planned for Tuesday in Guba, Benishangul-Gumuz, is expected to draw a mix of African and Caribbean leaders who were already in the capital this week for two major summits. The symbolism is immense. For Ethiopia, hosting dignitaries on the dam site underscores both engineering ambition and political defiance. But the logistical challenges of staging a world-class event in one of Ethiopia’s most remote corners highlight the limits of infrastructure and security readiness. Why They’re Already in Addis Addis Ababa has been the stage for two overlapping high-profile gatherings: The Africa–CARICOM Summit, focused on reparations, sovereignty, and deepening Afro-Caribbean ties. The Africa Climate Summit (ACS2), dedicated to green finance, industrialization, and holding global partners accountable. Both events drew more than a dozen presidents, prime ministers, and senior ministers. Their presence in Addis gives Ethiopia an unusual diplomatic opportunity: to extend invitations for the GERD’s inauguration without requiring long-haul travel. Who’s Coming Kenya’s President William Ruto is the only head of state confirmed by his office to attend in person, billed as “chief guest.” Ruto’s presence reflects Kenya’s growing role in continental climate and energy diplomacy. Other leaders who were in Addis for the two summits have been invited, though their participation remains unconfirmed: João Lourenço, President of Angola Hassan Sheikh Mohamud, President of Somalia Brahim Ghali, President of the Sahrawi Arab Democratic Republic Mia Mottley, Prime Minister of Barbados Gaston Browne, Prime Minister of Antigua & Barbuda Philip Davis, Prime Minister of The Bahamas Ralph Gonsalves, Prime Minister of St. Vincent & the Grenadines Terrance Drew, Prime Minister of St. Kitts & Nevis Mohammed Jallow, Vice President of The Gambia Hussein Abdulkadir, Foreign Minister of Djibouti Philip Mpango, Vice President of Tanzania (expected, not confirmed) The likely scenario, according to diplomats, is a hybrid format: a handful of leaders present at the dam itself, with the rest appearing virtually. Getting to Guba The GERD’s geography is both its strength and its weakness. Located near the Sudanese border, the project was deliberately sited far from Ethiopia’s highland heartland to maximize its hydro potential. But access remains limited. By road: Addis Ababa to Guba is a 700-kilometer drive, requiring 12–15 hours on a mix of highways and unpaved stretches. By air: Assosa Airport (200 km away) has a 2,350-meter asphalt runway capable of handling Boeing 737s and Dash-8 turboprops. Pawe Airfield and Mandura strip are shorter and poorly maintained, suitable only for small aircraft. Helipads built during dam construction now serve as the most practical means of ferrying VIPs from Assosa to the GERD site. Assosa Airport (200 km away) has a 2,350-meter asphalt runway capable of handling Boeing 737s and Dash-8 turboprops. Pawe Airfield and Mandura strip are shorter and poorly maintained, suitable only for small aircraft. Helipads built during dam construction now serve as the most practical means of ferrying VIPs from Assosa to the GERD site. Ethiopian Airlines is expected to deploy chartered turboprops for dignitaries, with military helicopters bridging the final stretch. Security Headaches Benishangul-Gumuz has experienced sporadic ethnic violence and militia activity in recent years. That complicates security for an event of this scale. Federal police and army units have been reinforcing the area since early September, according to people familiar with the planning. “There’s a thin line between symbolism and risk,” said one Addis-based analyst. “The government wants the world to see the dam, but every extra head of state raises the stakes.” Ethiopia’s Symbolism, From Adwa to GERD The choice to inaugurate the GERD at its remote site carries echoes of Ethiopia’s wider historical narrative. This is a country that defeated colonial conquest at Adwa in 1896, safeguarding its sovereignty while much of Africa was partitioned. It later hosted the birth of the Organisation of African Unity (now African Union) in Addis Ababa, cementing its place as a continental capital. By completing the GERD largely without Western financial institutions or Bretton Woods support, Ethiopia signals continuity in its tradition of self-determination. Just as it rejected colonial-era treaties over the Nile that privileged downstream states, it now demonstrates that Africans and their partners in the Caribbean can finance and execute mega-projects on their own terms. For visiting leaders, especially those from the Caribbean engaged in debates on reparations and sovereignty, the symbolism is stark: Ethiopia is setting a precedent for South-South achievement without external tutelage. Showpiece or Showdown For Prime Minister Abiy Ahmed, inaugurating the GERD in Guba rather than Addis is a deliberate gamble. It signals confidence, sovereignty, and control over Ethiopia’s periphery. But it also exposes infrastructure gaps — limited airports, long overland transfers, and fragile regional stability. Most leaders who came to Addis for the twin summits are unlikely to extend their stay into the lowlands. Yet even a handful of physical attendees, combined with live feeds and dramatic drone footage of the dam, may be enough for Ethiopia to project its intended message: that it has delivered Africa’s largest hydro project, on its own terms. The Bottom Line The GERD inauguration is less about who makes it to Guba and more about the narrative Ethiopia wants to project. For Abiy, even one confirmed ally on the dam’s concrete crest — Kenya’s William Ruto — is victory enough. From Adwa to the African Union to the GERD, Ethiopia has consistently sought to redefine African independence, resilience, and leadership. The question now is whether Guba’s rugged terrain can host the kind of spectacle that does justice to that legacy.

60 Years, 6 Dams: How Salini Built Ethiopia’s Hydro Legacy

60 Years, 6 Dams: How Salini Built Ethiopia’s Hydro Legacy Salini’s Enduring Legacy: Six Dams That Reshaped Ethiopia’s Water and Power Landscape Introduction: An Ethio-Italian Saga Forged in Concrete and Water For more than sixty years, one Italian company has stood at the heart of Ethiopia’s transformation into the “Water Tower of Africa.” Salini Costruttori—today Webuild—is not merely a foreign contractor. Across four political regimes, from Emperor Haile Selassie’s monarchy to the present federal republic, the company embedded itself as Ethiopia’s indispensable engineering arm. From Legadadi, which secured Addis Ababa’s water supply, to the Grand Ethiopian Renaissance Dam (GERD), Africa’s largest hydropower plant, Salini/Webuild’s concrete colossi have shaped Ethiopia’s economic aspirations, regional diplomacy, and domestic controversies. These dams are monuments to a national vision of progress, yet their legacy is also contested: displacing communities, altering ecosystems, and redrawing the geopolitics of the Nile Basin. Salini/Webuild’s Major Dams in Ethiopia Legadadi (1967–1971) — Securing Addis Ababa’s Water River system: Legadadi/Sendafà Purpose: Urban water supply (up to ~70% of Addis Ababa at inauguration) Design highlights: Hollow gravity concrete main dam (44 m) plus rockfill saddle dam; treatment plant; ~24–30 km steel aqueducts Long-run issue: Catchment agriculture drove sedimentation and nutrient loading; cyanobacteria blooms and degraded water quality—an early lesson in whole-catchment management Gilgel Gibe I (1988–2004) — The Reservoir That Enabled a Cascade River system: Gilgel Gibe / Omo Purpose: Hydropower and regulation for downstream cascade Installed capacity: 184 MW Design highlights: ~40 m rock-fill embankment with bituminous face; ~917 Mm³ reservoir Strategic role: Created a stable headwater source to feed Gilgel Gibe II Gilgel Gibe II (2003–2010) — Tunnel Power, Not a Big Dam River system: Gilgel Gibe / Omo Purpose: High-head diversion to maximize energy without another vast reservoir Installed capacity: 420 MW (four Pelton units) Design highlights: ~49 m diversion structure and a ~26 km tunnel through the Fofa mountains; ~505 m gross head Impact: On commissioning, lifted national generation by ~80%—a showcase of system-level planning Gilgel Gibe III (2006–2016) — Colossus and Controversy on the Omo River system: Omo Purpose: Hydropower and flow regulation for irrigation schemes Installed capacity: 1,870 MW Design highlights: ~250 m roller-compacted concrete (RCC) gravity dam (once the world’s tallest RCC) Controversies: No-bid award near US$2bn; ESIA published after construction began Elimination of the Omo’s natural annual flood undermined flood-recession farming and grazing, affecting ~200,000 indigenous people Forced resettlement linked to state sugar estates; rights abuses documented Downstream risk to Lake Turkana’s ecology, escalating cross-border concern No-bid award near US$2bn; ESIA published after construction began Elimination of the Omo’s natural annual flood undermined flood-recession farming and grazing, affecting ~200,000 indigenous people Forced resettlement linked to state sugar estates; rights abuses documented Downstream risk to Lake Turkana’s ecology, escalating cross-border concern Koysha (2016–present) — Ambition Meets Fiscal Gravity River system: Omo (fourth in the cascade) Purpose: Hydropower Planned capacity: 2,160 MW (eight Francis units) Design highlights: ~180 m RCC gravity dam Status & strain: ~60–65% complete; severe cost overrun (~151%) and FX constraints pushed Ethiopia toward exceptional commercial borrowing—stress-testing the debt-fueled model GERD (2011–present) — Africa’s Largest Hydropower Project River system: Blue Nile (Abay) Purpose: Hydropower, national grid stabilization, potential regional exports Installed capacity (design): 5,150 MW from 13 turbines Design highlights: ~170 m RCC main dam (≈1.8 km long) plus long rockfill saddle dam; ~74 bcm reservoir Financing identity: Largely domestically financed—bonds, diaspora contributions, salary deductions; Commercial Bank of Ethiopia shouldered the bulk—cementing its status as a sovereignty project The GERD’s Political Economy and Execution Sovereignty by Design Launched in April 2011 during Egypt’s political upheaval, GERD publicly rejected the logic of colonial-era Nile treaties. Refusal by multilateral lenders catalyzed a domestic financing drive that transformed GERD into a mass-mobilization project—part infrastructure, part nation-building. Civil Works vs. Electromechanical Reality Salini/Webuild led the civil works; Ethiopia’s state-owned METEC handled turbines and steelworks. Chronic delays, quality issues, and alleged graft led to METEC’s termination in 2018 and high-profile arrests—illustrating how governance failures can bog down even well-executed civil engineering. Economic Payoffs and Practical Bottlenecks The Energy Engine Ethiopia Wants Hydropower is the backbone of Ethiopia’s industrial strategy: lower-cost, renewable electricity to power manufacturing, expand access for 120+ million people, and export to neighbors through high-voltage interconnectors. The Frictions Holding It Back Transmission constraints: Grid upgrades and cross-border interconnectors lag megaproject timelines, slowing export revenues. Debt pressure: Cost overruns (notably Koysha) and foreign exchange scarcity complicate project completion and operations. Operational risks: Sedimentation from highland erosion threatens reservoir lifespans; climate variability may alter inflows and generation profiles. Human and Environmental Costs Omo Basin: Development Without the Flood Gibe III ended the Omo’s natural flood pulse. The result: collapse of flood-retreat agriculture and pasture cycles; food insecurity and displacement among indigenous communities; heightened conflict over shrinking resources; and transboundary ecological risk focused on Lake Turkana. GERD: Fewer Local Displacements, Bigger Geopolitics While GERD avoided the Lower Omo’s displacement patterns, it ignited a decade of geopolitical friction with Egypt and Sudan, transforming a civil engineering project into Africa’s most consequential water-security dispute. The GERD Negotiations—Milestones Without a Binding Deal 2011 — Announcement and Ground-Breaking Ethiopia begins construction without prior basin-wide agreement, reframing the Nile status quo. 2012 — Tripartite International Panel of Experts Technical reviews establish a basis for dialogue but not a roadmap for operations. 2015 — Declaration of Principles (Khartoum) Egypt, Ethiopia, and Sudan endorse cooperation, equitable use, and no significant harm—but leave rules for drought and long-term operations unresolved. 2019–Feb 2020 — U.S./World Bank Observers Talks intensify; Ethiopia exits final meetings, citing sovereignty and bias concerns. July 2020 — First Filling Ethiopia commences filling unilaterally; the dispute reaches the UN Security Council before returning to African Union mediation. 2020–2025 — AU Rounds and Repeated Deadlocks Multiple AU-facilitated efforts fail to yield a binding filling/operation agreement; de facto realities on the ground outpace diplomacy. What Endures: Webuild’s Dual Legacy in Ethiopia Monumental Achievements A six-project arc culminating in Africa’s largest hydropower plant System-level design (Gibe I + II) that squeezed megawatts from topography rather than more concrete A durable construction partnership across wildly different Ethiopian governments Inescapable Costs Omo basin dispossession and ecological disruption Debt and FX vulnerabilities, with Koysha emblematic of the financing squeeze Geopolitics of the Nile, still unresolved and highly consequential The Road Ahead Sustaining this legacy demands: Catchment rehabilitation to slow sedimentation (reforestation, terracing, watershed governance) Grid and interconnector investment to monetize surplus power and stabilize the system Climate-smart operations (adaptive rule curves, regional coordination) Credible, inclusive diplomacy to turn GERD from flashpoint into anchor of basin cooperation Conclusion: Concrete That Still Moves Salini/Webuild helped engineer a new Ethiopian reality. Its dams are not static monuments; they are active forces—spinning turbines, redirecting rivers, shifting livelihoods, and recalibrating regional power. The legacy is both nation-building and nation-testing. Whether it ultimately reads as triumph or cautionary tale will depend less on concrete already poured than on governance, diplomacy, ecology, and finance in the years ahead.

Why the U.S. Embassy’s Tribute Insults Ethiopians

Why the U.S. Embassy’s Tribute Insults Ethiopians Introduction: A Tale of Two Ethiopias In the quiet halls of Addis Ababa’s diplomatic quarter, Ethiopia’s economic story is being retold in glowing terms. When the U.S. Embassy issued a farewell tribute to Mamo Mihretu, the outgoing Governor of the National Bank of Ethiopia (NBE), it was not just a polite send-off. It was a clear endorsement. The embassy praised “historic reforms,” “transformative steps,” and a government that had the courage to embrace a market-oriented future. In the language of international finance, the achievements looked dazzling: inflation tamed, reserves rebuilt, and investor confidence restored. But a few kilometers away in Merkato—the sprawling, anarchic marketplace at the heart of Addis Ababa—another reality dominates. Here, reform means the price of cooking oil that has doubled, the cost of teff that puts injera out of reach, and the cruel arithmetic of wages eroded by inflation. For families living hand to mouth, the “floating of the birr” is not a technical policy but the reason they cannot afford imported medicine. The U.S. Embassy’s applause is therefore more than tone-deaf. It is an ideological statement. By celebrating Mihretu’s neoliberal pivot, Washington aligns itself with international creditors and foreign investors while ignoring the suffering of ordinary Ethiopians. The statement erases a recent history in which Ethiopia’s state-led model delivered rapid poverty reduction and double-digit growth, recasting the current painful reforms as the only viable path forward. Deconstructing the Accolades – The Washington Consensus Returns A Technocrat for the IFIs When Mihretu was appointed in 2023, his CV reassured Washington and the IMF. A former World Bank insider, he was fluent in their vocabulary. His “Homegrown Economic Reform Program”—a misnomer given its tight alignment with IMF orthodoxy—was billed as Ethiopia’s last chance to restore stability after years of debt-fuelled state expansion. The “Historic” Steps His tenure brought three sweeping changes: Currency flotation – In July 2024, the birr was floated for the first time in five decades, plunging from 57 to the dollar to over 75 in a matter of days, later sliding beyond 130. Monetary tightening – The NBE was recast into an inflation-targeting central bank, with interest rates, open-market operations, and an end to direct deficit financing. Financial liberalization – A stock exchange was launched, and foreign banks and investors were allowed into Ethiopia’s once-shielded financial sector. The Official Scorecard By mid-2025, the IMF could point to achievements: headline inflation fell from over 30% to 14%, foreign reserves tripled to $3.6 billion, and the parallel market premium collapsed. More importantly, a $3.4 billion IMF package was unlocked, buttressed by World Bank funds. FDI ticked upward. From Washington’s vantage, this was textbook reform: hard medicine, competently administered, yielding stabilization. Yet the narrative is less analysis than choreography. The IMF hosted Mihretu in softball interviews. Western embassies amplified the “success story.” The applause was not independent evaluation but part of a carefully staged performance to reassure creditors and investors. The Price of Reform – When Macroeconomics Meets the Marketplace The Shock of a Floating Birr The currency float unleashed a tidal wave of price increases. Imports—fuel, medicine, fertilizer—skyrocketed. Merchants passed costs on, households bore the burden. Authorities even shuttered shops accused of “unjustified” price hikes, a tacit admission that the policy had spun beyond control. Inflation’s Mirage Headline inflation fell, but from the perspective of households, the numbers are meaningless. A family already battered by 100% food price increases sees little solace in inflation easing from 30% to 14%. Wages stagnated while the cost of survival kept rising. Public servants, the backbone of Ethiopia’s state, found themselves priced out of their own economy. Illustrative Collapse in Purchasing Power (2023–25): Cooking oil: 250 → 550 birr per liter Teff: 80 → 160 birr per kilo Petrol: 78 → 150 birr per liter Public sector salary: 6,000 → 6,500 birr/month→ Real income effectively halved The Export Mirage Economists defending devaluation argued it would boost exports. But Ethiopia’s exports—coffee, oilseeds, khat—are price-inelastic. Cheaper beans do not persuade Germans to drink more coffee. Imports, by contrast, are inelastic and unavoidable. The result: higher costs, no export surge, and a worsened trade balance. The reforms thus risk manufacturing poverty. Poverty rates, which fell from 44% in 2000 to 24% in 2016 under the developmental state, have reversed upward, edging back over 30%. This is not a temporary shock. It is a structural feature of the chosen model. The Ghost of Meles Zenawi – A Philosophical Reversal The reforms are not occurring in a vacuum. They mark a clean break from the philosophy of Meles Zenawi, Ethiopia’s intellectual strongman until his death in 2012. The Developmental State Vision Meles rejected neoliberalism as a “dead end” for Africa. He argued that markets in poor countries were riddled with failures, and only an activist state could marshal resources into infrastructure, education, and industry. Ethiopia became the poster child: GDP growth averaged 10% for a decade, poverty halved, child mortality fell, school enrollment soared. The Model’s Limits Yet the same model sowed its downfall: debt piled up, foreign exchange shortages crippled the economy, and the state crowded out private initiative. By 2023, Ethiopia defaulted on its foreign debt. The IMF’s medicine was not invited; it was imposed. Two Eras in Contrast 2004–16: State-led, double-digit growth, massive poverty reduction, authoritarian politics. 2020–25: Market-led, slower growth, rising poverty, macro “stability.” The pendulum swung from one extreme to another. The tragedy is that Ethiopia is stuck between two flawed models: one that built but could not finance progress, and another that stabilizes spreadsheets while destabilizing lives. A Necessary Pivot or Neocolonial Mandate? Washington calls the reforms “homegrown.” In reality, they were conditional. Ethiopia, broke and desperate, had little bargaining power. The $3.4 billion IMF loan came with strict prerequisites: liberalization, flotation, austerity. This was structural adjustment by another name. Who Gains? Foreign investors snap up Ethiopian assets at fire-sale prices, thanks to a devalued birr. Creditors see improved repayment prospects, their influence over Ethiopian policy entrenched. Ordinary Ethiopians pay the bill: salaries worth half as much, food that costs twice as much, clinics and schools squeezed by austerity. The asymmetry is glaring: stability for capital, instability for citizens. Diplomatic praise thus reads less like a neutral assessment than a declaration that Ethiopia is once again safe for business. Conclusion: Beyond Diplomatic Applause The U.S. Embassy’s tribute to Mamo Mihretu is not just a farewell. It is an endorsement of a contested economic turn—one that privileges creditors over citizens, markets over livelihoods. By focusing on inflation charts and reserve levels, the embassy overlooks collapsing real incomes, rising poverty, and social discontent. Ethiopia cannot return to the unsustainable state-capitalism of the past, but neither can it survive a neoliberal program that hollows out its middle class. The task is to find a third way: a synthesis that combines fiscal realism with developmental ambition, that disciplines debt while prioritizing poverty reduction. Until then, Washington’s applause will echo as hollow in Merkato as it is loud in the IMF’s boardrooms.

Ethiopian Banks Dangle Up to 10 Birr-per-Dollar Bonuses in New Year FX Race

Ethiopian Banks Dangle Up to 10 Birr-per-Dollar Bonuses in New Year FX Race Addis Ababa — Ethiopia’s banking sector has turned the upcoming Enkutatash holiday into a high-stakes currency competition, with banks rolling out headline-grabbing promotions — some offering fixed Birr bonuses per dollar, others floating percentage uplifts — to capture diaspora remittances and festive FX flows. The Context: Why Enkutatash Triggers an FX Bidding War Seasonal spike in inflows: Ethiopia’s New Year (Sept 11) is a peak remittance season as families send gifts home. Policy shift: The National Bank of Ethiopia’s gradual liberalization and larger FX auctions have emboldened banks to compete more openly. Diaspora target: With an estimated USD 5–6 billion in remittances annually, banks see festive promos as a way to divert flows away from informal hawala channels into the formal system. The Offers: Bank-by-Bank Breakdown Here’s how banks are competing, based on their published campaigns: What it means in practice: If the daily board rate is ETB 142 per USD: At Amhara Bank, customers would effectively get ETB 149 (142 + 7) per USD. At Abyssinia Bank, they’d walk away with ETB 152 (142 + 10) per USD — a nearly 7% uplift compared to the market average. At Zemen Bank, the 6% bonus would translate into ~150.5 ETB per USD. At Amhara Bank, customers would effectively get ETB 149 (142 + 7) per USD. At Abyssinia Bank, they’d walk away with ETB 152 (142 + 10) per USD — a nearly 7% uplift compared to the market average. At Zemen Bank, the 6% bonus would translate into ~150.5 ETB per USD. Why Banks Can Afford This FX auctions supplying liquidity: NBE’s recent USD 150m auction gives banks more hard currency to sell on. Regulatory blessing: Campaigns dovetail with the central bank’s DEBO initiative, urging diaspora to use formal channels. Competitive signaling: Banks want to signal strength ahead of looming foreign entrants (after the 2024 open banking law). The Risks Margin squeeze: Offering ETB 10 extra per dollar significantly eats into banks’ spread revenue; promos are unlikely to last beyond September. Selective eligibility: Bonuses often apply only to transfers via specific apps or corridors. Customers may face caps. Parallel market response: If informal operators counter with even higher rates, banks may struggle to hold ground. Outlook: A New Normal in Ethiopian FX This holiday season is more than a marketing stunt. The fact that mainstream banks are advertising +10 Birr per USD or 6% uplifts suggests Ethiopia’s FX landscape is entering a more competitive, transparent era. If banks continue to innovate — blending digital rails, aggressive promos, and transparent pricing — remittances that once slipped into the informal market could increasingly flow into formal banking channels, strengthening Ethiopia’s external accounts. For diaspora senders, this year’s Enkutatash presents a rare opportunity: formal channels that not only match but in some cases outperform the street rate.