Over a decade of talks has reached no conclusion on the dam. AFP
Over a decade of talks has reached no conclusion on the dam. AFP
Over a decade of talks has reached no conclusion on the dam. AFP
Over a decade of talks has reached no conclusion on the dam. AFP

Ethiopia seeks UN intervention in Nile dam dispute


Hamza Hendawi
  • English
  • Arabic

Ethiopia’s Foreign Ministry said on Friday it had written to the UN Security Council asking that it persuades Egypt and Sudan to return to African Union-led talks and negotiate “in good faith” on their long-running dispute over a hydroelectric Nile dam Addis Ababa is building.

Nearly a year of AU-sponsored talks on Ethiopia’s Grand Ethiopian Renaissance Dam have failed to make any progress. They broke down in April in Kinshasa, capital of the Democratic Republic of Congo, when a proposal by Egypt and Sudan to involve the UN, the United States and the European Union as mediators was rejected by Ethiopia.

The breakdown was immediately followed by an escalating war of words, with Egypt and Sudan accusing Ethiopia of stalling and intransigence, and Addis Ababa claiming the two downstream nations were making unreasonable demands or seeking to internationalise the issue.

Egypt says the dam will rob it of a significant portion of its share of the Nile waters, on which it depends for more than 90 per cent of its fresh water needs. Sudan says the GERD would disrupt work on its own power-generating Nile dams, as well as its water treatment facilities unless Addis Ababa shared details of the dam’s operations and the filling of the water reservoir behind it.

The letter to the UN Security Council decried attempts by Cairo and Khartoum to seek the intervention of the 15-member body in the GERD dispute. It also denounced what it called attempts by the two to internationalise the dispute and involve the Arab League.

The Cairo-based Arab League called last week on the UN Security Council to persuade Addis Ababa to enter a legally binding deal on the operation of the dam.

This week, Sudan wrote to the UN Security Council demanding that it discusses the GERD’s effects on the “safety and security” of millions of Sudanese and to stop Ethiopia from going ahead next month with a second filling of the dam without first reaching a deal with Khartoum and Cairo.

A satellite image of the much disputed Grand Ethiopian Renaissance Dam and the Blue Nile River in Ethiopia. Reuters
A satellite image of the much disputed Grand Ethiopian Renaissance Dam and the Blue Nile River in Ethiopia. Reuters

Ethiopia accuses Egypt and Sudan of colonialist 'whims'

“The two countries [Sudan and Egypt] have tried to suffocate the AU-led process by injecting unrelated issues in the discussion, by unnecessarily securitising and internationalising the matter, and dragging the Arab League into the situation to further complicate the issue,” the Ethiopian letter said.

The talks, said the letter, were meant to promote co-operation between the three nations rather than “serve the colonial and monopolistic entitlements as well as their whims and wishes on Ethiopia”.

That was a reference to what Addis Ababa sees as colonial-era treaties giving Sudan and Egypt the lion’s share of the Nile waters, while denying other Nile basin countries a fair share.

Ethiopia controls the source of the Blue Nile, which is located in its highlands. The Blue Nile thunders down into Sudan and meets the much less voluminous White Nile just outside Khartoum before the two travel north through northern Sudan and all the way through Egypt to the Mediterranean. The Blue Nile accounts for more than 80 per cent of the river’s waters.

Curiously, the increasingly anti-Ethiopia rhetoric in recent months from Egypt and Sudan follows assertions by experts that, due to construction delays, the second filling would involve much less water than the 13.5 billion cubic metres declared by Ethiopia.

The National cartoonist Shadi Ghanim offers his take on the impact of the Nile Dam talks.
The National cartoonist Shadi Ghanim offers his take on the impact of the Nile Dam talks.

Ethiopia has remained silent on the size of the filling, but Cairo and Khartoum recently said that, regardless of the volume, the second filling would be an intolerable act of defiance.

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What: 2006 World Cup quarter-final
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England 0 Portugal 0
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Under 12 – Minerva Academy

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Analysis

Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory