Economy

Ethiopia’s Striving for Major Infrastructure Developments Amid Growing Tensions

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Ethiopia is undertaking major infrastructure projects, including Africa’s largest airport and a nuclear power plant, to boost economic growth and reduce foreign aid dependency. These initiatives, highlighted by the recent inauguration of the Grand Ethiopian Renaissance Dam (GERD) in July, are aimed at promoting self-sufficiency. Prime Minister Abiy Ahmed described the dam as a symbol of future promise, enhancing the nation’s infrastructure and energy resources.

However, these advancements have intensified internal challenges, particularly ethnic conflicts in regions like Amhara and Oromia, jeopardizing the fragile peace established by a 2022 agreement ending the Tigray war. Ethiopia also faces rising poverty, with 43% of its population living below the poverty line, a situation exacerbated by inflation and increased defense expenditures.

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Externally, Ethiopia’s pursuit of access to the Red Sea has reignited tensions with Eritrea, which became a landlocked nation post-Eritrea’s 1993 secession. This aspiration for direct sea access has led to diplomatic strains, with Eritrea accusing Ethiopia of potential aggression, a claim Ethiopia denies, asserting that Eritrea is preparing for conflict. Moreover, tensions with Egypt over the GERD complicate matters, as Egypt alleges that the dam threatens its water security and has reinforced security alliances with Ethiopia’s neighbors, including Eritrea and Somalia.

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While Ethiopia’s modernization and economic reforms are commendable, the interplay of internal strife and geopolitical tensions represents significant risks to its development ambitions. Balancing large-scale infrastructure projects with domestic conflict resolution and stable international relations is essential for ensuring sustainable progress.

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