• A satellite image of the Grand Ethiopian Renaissance Dam on the Blue Nile river in the Benishangul-Gumuz region of Ethiopia. Maxar Technologies via AP
    A satellite image of the Grand Ethiopian Renaissance Dam on the Blue Nile river in the Benishangul-Gumuz region of Ethiopia. Maxar Technologies via AP
  • A satellite image of the Grand Ethiopian Renaissance Dam on the Blue Nile river in the Benishangul-Gumuz region of Ethiopia. Maxar Technologies via AP
    A satellite image of the Grand Ethiopian Renaissance Dam on the Blue Nile river in the Benishangul-Gumuz region of Ethiopia. Maxar Technologies via AP
  • A 2013 photo showing the Blue Nile river flowing near the site of the Grand Ethiopian Renaissance Dam near Assosa in the Benishangul-Gumuz region of Ethiopia. AP, File
    A 2013 photo showing the Blue Nile river flowing near the site of the Grand Ethiopian Renaissance Dam near Assosa in the Benishangul-Gumuz region of Ethiopia. AP, File
  • A general view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AP, File
    A general view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AP, File
  • A general view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
    A general view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
  • A general view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
    A general view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
  • Construction workers are seen at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
    Construction workers are seen at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
  • A general view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
    A general view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
  • A general view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
    A general view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
  • A view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
    A view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
  • A general view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
    A general view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
  • A general view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
    A general view of construction work at the site of the Grand Ethiopian Renaissance Dam near Assosa, Ethiopia. AFP, File
  • Sudan's Minister of Irrigation and Water Resources Yasir Mohamed (C) takes part in a video meeting over the Grand Ethiopian Renaissance Dam on June 9, 2020. AFP
    Sudan's Minister of Irrigation and Water Resources Yasir Mohamed (C) takes part in a video meeting over the Grand Ethiopian Renaissance Dam on June 9, 2020. AFP
  • Egyptian Foreign Minister Sameh Shukry. AP
    Egyptian Foreign Minister Sameh Shukry. AP
  • The Nile in the Sudanese capital, Khartoum. AFP
    The Nile in the Sudanese capital, Khartoum. AFP
  • The Nile in the Sudanese capital, Khartoum. AFP
    The Nile in the Sudanese capital, Khartoum. AFP
  • The Nile in the Sudanese capital, Khartoum. AFP
    The Nile in the Sudanese capital, Khartoum. AFP
  • A pleasure boat carrying tourists and locals sails on the Nile at sunset in Aswan, Egypt. AP, file
    A pleasure boat carrying tourists and locals sails on the Nile at sunset in Aswan, Egypt. AP, file
  • Sayed Ahmed Abdoh poles his boat to check fish traps in the Nile, near Abu Al Nasr village, about 770 kilometres south of Cairo, in Egypt. AP, file
    Sayed Ahmed Abdoh poles his boat to check fish traps in the Nile, near Abu Al Nasr village, about 770 kilometres south of Cairo, in Egypt. AP, file
  • An aerial view shows the Nile before sunset in the Egyptian capital, Cairo. AFP
    An aerial view shows the Nile before sunset in the Egyptian capital, Cairo. AFP
  • An aerial view shows the Nile before sunset in the Egyptian capital, Cairo on June 20, 2020. AFP
    An aerial view shows the Nile before sunset in the Egyptian capital, Cairo on June 20, 2020. AFP

Nile dam: Ethiopia says 'major understanding' reached for final deal


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Ethiopia said it had reached its first-year target for filling a mega-dam on the Blue Nile River and progress had been made on a deal to ease tensions with downstream neighbours Egypt and Sudan.

Prime Minister Abiy Ahmed's office said on Tuesday the three countries had reached a “major common understanding which paves the way for a breakthrough agreement” and more talks were imminent.

The statement by Mr Ahmed’s office came as new satellite images show the water level in the reservoir behind the nearly completed $4.6 billion Grand Ethiopian Renaissance Dam is at its highest in at least four years.

Mr Ahmed's office indicated that enough water had accumulated to enable Ethiopia to test the dam's first two turbines – an important milestone on the way towards actually producing energy.

Ethiopia has said the rising water is from heavy rains, and the new statement said that “it has become evident over the past two weeks in the rainy season that the [dam’s] first-year filling is achieved and the dam under construction is already overtopping.”

Ethiopia has said it would begin filling the reservoir of the dam, Africa’s largest, this month even without a deal as the rainy season floods the Blue Nile. But the new statement says the three countries’ leaders have agreed to pursue “further technical discussions on the filling … and proceed to a comprehensive agreement.”

The statement did not give details on Tuesday’s discussions, mediated by current African Union chair and South African President Cyril Ramaphosa, or what had been agreed upon.

But the talks among the country’s leaders showed the critical importance placed on finding a way to resolve tensions over the celebrated Nile River, a lifeline for all involved.

Ethiopia says the colossal dam offers a critical opportunity to pull millions of its nearly 110 million citizens out of poverty and become a major power exporter. Downstream Egypt, which depends on the Nile to supply its farmers and booming population of 100 million with more than 90 per cent of its freshwater, asserts that the dam poses an existential threat.

Negotiators have said key questions remain about how much water Ethiopia will release downstream if a multiyear drought occurs and how the countries will resolve any future disputes. Ethiopia rejects binding arbitration at the final stage.

Egyptian President Abdel Fattah El Sisi stressed Egypt’s “sincere will to continue to achieve progress over the disputed issues,” according to a presidential spokesman. The leaders agreed to “give priority to developing a binding legal commitment regarding the basis for filling and operating the dam”, he said.

Sudanese Irrigation Minister Yasser Abbas said in Khartoum that once the agreement had been solidified, Ethiopia would retain the right to amend some figures relating to the dam’s operation during drought periods. “Generally, the atmosphere was positive” during the talks, he said.

Mr Abbas said the leaders agreed on Ethiopia’s right to build additional reservoirs and other projects as long as it notified the downstream countries, in line with international law.

“There are other sticking points, but if we agree on this basic principle, the other points will automatically be solved,” he said.

Sudanese Prime Minister Abdalla Hamdok and Ethiopia’s leader called Tuesday’s meeting “fruitful.”

“It is absolutely necessary that Egypt, Sudan and Ethiopia, with the support of the African Union, come to an agreement that preserves the interest of all parties,” Moussa Faki Mahamat, chairman of the AU Commission, said on Twitter. The Nile “should remain a source of peace”, he said.

Years of talks with a variety of mediators, including the Trump administration, have failed to produce a solution.

Kevin Wheeler, a researcher at the Environmental Change Institute, University of Oxford, told the Associated Press last week that fears of any immediate water shortage “are not justified at this stage at all and the escalating rhetoric is more due to changing power dynamics in the region".

However, “if there were a drought over the next several years, that certainly could become a risk,” he said.

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.”