Ethiopia's Nile dam talks resume amid renewed tension after Trump comments


Hamza Hendawi
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Egypt, Sudan and Ethiopia resumed negotiations on Tuesday over the impact of a huge Nile dam, ending a seven-week hiatus but taking place amid renewed tension.

The talks over the Grand Ethiopian Renaissance Dam were called by South African President and current African Union chair Cyril Ramaphosa and was held online.

Mr Ramaphosa’s office on Monday said the decision to resume the talks followed “extensive” consultations with leaders of the three nations, reflecting their political to reach an agreement.

Ethiopia began building the dam on the Blue Nile about a decade ago at a cost of nearly $5 billion.

On completion, it will produce 6,000 megawatts of electricity, satisfying domestic needs with the surplus destined for export.

Downstream Egypt and Sudan fear the dam would harm their vital Nile-related interests.

Egypt’s Irrigation Ministry on Tuesday said foreign and water ministers from the three nations took part in the talks, which will continue for a week.

Representatives from the three nations will work on a draft that brings together the views of all as the basis for a discussion on a final agreement, it said.

The are taking place after US President Donald Trump said Egypt could end up “blowing up that dam” if the talks do not yield results.

Ethiopian Prime Minister Abiy Ahmed did not address the comments directly, but a statement released the next day said his nation would not “cave in to aggression of any kind".

"Ethiopians have never kneeled to obey their enemies but to respect their friends,” Mr Abiy said.

He said threats of any kind to resolve the dispute were “misguided, unproductive and clear violations of international law.”

Egypt has never formally suggested the use of force to resolve the dispute with Ethiopia, with President Abdel Fattah El Sisi insisting talks were the only way to break the deadlock and reach a deal.

Mr El Sisi, who has spent billions of dollars on importing the latest weapons systems, in July launched a shot across the bow.

“No one dares eat the lion’s food. Be lions. Being a lion is not just empty talk," he said that month, the last time he spoke at length about the dispute.

"Our right is not just to water but to life. No one dares encroach on us, on our interests or our national security.”

Ethiopia has on several occasions stated its readiness to defend the dam against attack.

Egypt remained quiet about Mr Trump’s remark, made during a weekend call with Sudanese Prime Minister Abdalla Hamdok in front of reporters at the White House.

“Egypt has absolutely nothing to do with this. This is between President Trump and Ethiopia,” said Amr Adeeb, a prominent Egyptian media figure who is close to the government, on the Saudi-owned channel MBC Misr.

“He did not say that Egypt threatened to do that."

Egypt and Sudan have for years been trying to no avail to persuade Ethiopia to commit to a legally binding deal on the running of the dam, including a mechanism to deal with drought years and resolving future disputes.

Ethiopia has said that such a deal amounted to interference in its internal affairs.

Egypt depends on the Nile for nearly all its water needs. A reduced share of could cost it hundreds of thousands of jobs and disrupt its delicate food balance.

Sudan is worried that a breach in the dam would flood large parts of its eastern regions, and that lack of co-operation with the Ethiopians on running their dam could harm its own hydroelectric dams on the Blue Nile.

With less than two weeks left before the US presidential elections, the value and effect of Mr Trump’s comments on the dam could be insignificant.

He is trailing his Democratic rival Joe Biden in opinion polls but could still pull off a surprise win, as he did in 2016.

“Things would have been very different if the Trump administration had taken such a strong position a few months ago,” said Hany Raslan, an African affairs expert from Cairo’s Al Ahram Centre for Political and Strategic Studies.

"But it came with only days before the US election and that diminishes the possibility it could change things on the ground."

But Mr Raslan said the comment “amounted to a very strong denunciation of the intransigent Ethiopian position with the use of language that’s unprecedented in its clarity”.

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It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.

The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.

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He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.

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The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

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The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

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The flights
The closest international airport to the TMB trail is Geneva (just over an hour’s drive from the French ski town of Chamonix where most people start and end the walk). Direct flights from the UAE to Geneva are available with Etihad and Emirates from about Dh2,790 including taxes.

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

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Borussia Dortmund v Schalke (4.30pm) 
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Friday, June 19 Norwich v Southampton 9pm; Tottenham v Manchester United 11pm  

Saturday, June 20 Watford v Leicester 3.30pm; Brighton v Arsenal 6pm; West Ham v Wolves 8.30pm; Bournemouth v Crystal Palace 10.45pm 

Sunday, June 21 Newcastle v Sheffield United 2pm; Aston Villa v Chelsea 7.30pm; Everton v Liverpool 10pm 

Monday, June 22 Manchester City v Burnley 11pm (Sky)

Tuesday, June 23 Southampton v Arsenal 9pm; Tottenham v West Ham 11.15pm 

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Leicester City v Brighton (9pm)

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