Ethiopia officially inaugurated the Grand Ethiopian Renaissance Dam (GERD) on Tuesday, marking the completion of Africa’s largest hydroelectric project. The $5 billion dam, situated on the Blue Nile near the Sudanese border, is expected to transform Ethiopia’s energy landscape and bolster its regional influence, even as it continues to stir diplomatic friction with downstream nations Egypt and Sudan.

The GERD, which began construction in 2011, now stands as a symbol of Ethiopia’s development ambitions. With a planned capacity of 5,150 megawatts, the dam is projected to double the country’s electricity output, providing power to millions of Ethiopians and enabling exports to neighboring states. Two turbines are already operational, generating 750 megawatts.

Prime Minister Abiy Ahmed hailed the inauguration as a national milestone, emphasizing the dam’s role in alleviating energy poverty and promoting regional cooperation. “The Renaissance Dam is not a threat, but a shared opportunity,” Abiy stated during a recent parliamentary address.

However, the project has long been a point of contention with Egypt, which relies on the Nile for approximately 90% of its freshwater supply.

Cairo fears that the dam could reduce water flows during droughts and undermine its historical water rights, citing colonial-era treaties. Egypt’s Foreign Ministry reiterated its concerns this week, warning it would take “appropriate measures” to safeguard national interests.

Sudan has echoed Egypt’s call for a legally binding agreement on the dam’s operation and filling schedule, though it also stands to benefit from improved flood control and access to affordable electricity.

Despite years of negotiations, no formal accord has been reached. Ethiopia maintains that the dam was built within its sovereign rights and has taken steps to mitigate downstream impact, including phased reservoir filling during wet seasons. Independent studies have so far found no significant disruptions to Nile flow.

The GERD has also emerged as a unifying force within Ethiopia, a country grappling with internal conflicts and economic challenges. Funded almost entirely through domestic resources—91% from the central bank and 9% from public contributions—the dam has been embraced as a symbol of national resilience.

Yet, challenges remain. Roughly half of Ethiopia’s rural population remains unconnected to the national grid, and the full benefits of the dam may take time to reach remote communities.

Meanwhile, geopolitical tensions persist. Ethiopia’s efforts to secure sea access via Eritrea or Somalia have drawn scrutiny from Egypt, which has increased its engagement with both countries.

As the GERD begins full operations, Ethiopia has invited neighboring nations to view the dam not as a threat, but as a catalyst for shared progress. Whether that vision materializes will depend on continued diplomacy and regional cooperation.