Despite immediate opposition from Egypt and Sudan Cooperative Framework Agreement enters into force a couple of days back. This is partially a result of Ethiopia’s highly skilled diplomatic efforts to ensure that the waters of the Nile be used in an equitable manner redetecting the credo of African resources for Africans.
Ever since the establishment of the AU and its predecessor OAU the issue of utilizing the natural resources of the newly independent countries was always on the agenda of almost all meetings of the general assemblies of Heads OF States and Government of African countries. Economic cooperation and integration in the spirit of pan Africanism was repeatedly expressed in the resolutions of numerous meetings conducted both by former OAU and AU.
Colonial forces who were engaged in the pillage of Africa as their raw material sources used all kinds of malicious treaties not only to rob African countries of their own resources but were busy trying to perpetrate their neo-colonial rule by crafting all kinds of agreements that were in favor of their own economic interests. In countries where they face some level of opposition, they triggered internal conflicts only to appear as mediators at later stage.
Africa is rich in a variety of natural resources, which contribute significantly to the continent’s economic growth. Africa’s natural resources, among other things include minerals and metals particularly gold from South Africa, Ethiopia Ghana, Mali, and Tanzania are among the world’s leading gold producers. Africa has rich diamond resources in Botswana, South Africa, Angola, and the Democratic Republic of Congo (DRC) Zambia and the DRC have vast copper reserves, with mining being a major industry in both countries. South Africa has the largest reserves of platinum-group metals.
Colten and cobalt found mainly in the DRC, these minerals are essential for electronics and battery production. Africa has significant oil reserves, with countries like Nigeria, Angola, Algeria, and Libya being key oil exporters. Mozambique, Tanzania, Egypt, and Algeria have substantial natural gas reserves. Recent gas discoveries in East Africa, particularly Ethiopia have bolstered the region’s energy prospects.
Africa is a major producer of cocoa (Ivory Coast, Ghana), coffee (Ethiopia, Uganda), tea (Kenya), and cotton (Egypt, Sudan, Burkina Faso). Central African nations like Gabon and the Congo Basin are known for their timber resources. Countries like Kenya, South Africa, and Morocco produce large amounts of fruits such as bananas, avocados, and citrus. Africa’s vast forests, especially in the Congo Basin, are rich in biodiversity and timber resources. Coastal countries like Namibia, Senegal, and Morocco have significant fishing industries.
Africa has abundant resources of renewable energy. The continent receives abundant sunlight, making solar energy a significant untapped resource. Africa has enormous hydropower potential, particularly in Ethiopia, the DRC (Inga Dam), and Zambia. Countries like South Africa and Kenya have begun developing wind energy projects. Africa holds around 60% of the world’s uncultivated arable land, making it a potential agricultural powerhouse. Major rivers like the Nile, Congo, and Niger provide water for agriculture, hydropower, and transportation.
These resources position Africa as a key player in global markets, especially in minerals, energy, and agriculture. However, many countries face challenges in managing these resources sustainably and equitably.
Launching of CFA is the first major attempt in the history of Africa and more particularly Nile riparian countries to resolve in using their water resources from the Nile which was a prerogative of Sudan and Egypt for thousands of years. The Agreement effectively resolved the gross miscarriage of justice on Nile Riparian Countries who were prevented from using their own resources in their respective countries by colonial agreements of 1929 and 1959 entered between Britain and Egypt and later between Sudan and Egypt deliberately ignoring other riparian countries.
The preamble of the Agreement states that “A framework agreement governing their relations with regard to the Nile Basin River will promote integrated management, sustainable development, and harmonious utilization of the water resources of the basin as well as their conservation and protection for the benefit of the present and future generation”
Moreover, Article 1 of the Agreement clearly indicates the scope of application of the Agreement stating that “The present framework applies to the use, development and protection, conservation and management of the Nile River Basin and its resources and establishes an institutional mechanism for cooperation among Nile Basin States”
The Agreement incorporates general principles enumerated in the utilization of Transboundary Rivers as provided in a number of international conventions. These principles include cooperation, sustainable development, subsidiary planned development at lower level, equitable and reasonable utilization, prevention of causing significant harm, right to use the waters of the Nile within their territories, protection and conservation, sharing information concerning planned measures, upholding community of common interest, exchange of data and information, environmental impact assessment, audit, peaceful resolution of disputes, water as socio-economic value and water security. Article 4 expounds on equitable and reasonable utilization of the waters of the Nile River.
In terms of organizational structure, the Agreement provided the establishment of four levels of structure which included Conference of Heads of States and Government, Council of Ministers, Technical Advisory Committee, Sectoral Advisory Committee and Secretariat. The headquarters of CFA will be located at Entebbe, Uganda.
Ethiopia plays a central role in the Cooperative Framework Agreement (CFA), particularly in relation to the Nile River Basin. Ethiopia can contribute a lot to the promotion and development of CFA in several ways.
Ethiopia has been a leading proponent of the CFA, advocating for a more equitable distribution of the Nile’s water resources. This contrasts with historical agreements that heavily favored downstream countries like Egypt and Sudan. Ethiopia seeks to ensure that upstream nations, particularly those contributing to the Nile’s flow, also benefit from its waters.
Construction of the Grand Ethiopian Renaissance Dam (GERD) has been a major point of negotiation and contention within the CFA framework. The dam highlights Ethiopia’s need for water for its own development, particularly for electricity generation, without significantly affecting downstream countries. Ethiopia views the CFA as a legal basis to negotiate water usage with other Nile Basin countries on more equal terms.
By supporting the CFA, Ethiopia promotes regional integration and cooperation in the Nile Basin. The agreement encourages joint projects and sustainable development, fostering economic and diplomatic ties with other Nile Basin nations.
Ethiopia is an active participant in the Nile Basin Initiative (NBI), which is closely tied to the CFA. The NBI aims to provide a platform for dialogue, mutual trust, and cooperation among the 11 Nile Basin countries. Ethiopia’s leadership in the NBI reinforces its commitment to a cooperative approach to managing Nile water resources.
The country seeks to balance its own water security needs while addressing the concerns of downstream countries like Egypt and Sudan. The CFA provides a framework for negotiating water-sharing arrangements that benefit all Nile Basin countries and mitigate potential conflicts over water resources.
In summary, Ethiopia’s role in the Cooperative Framework Agreement is crucial for reshaping Nile water governance, promoting regional cooperation, and ensuring its own water security and development needs.
In terms of protecting and conserving the water resources of the Nile Basin, Ethiopia can identify and promote projects aligned with its green economy initiatives, such as afforestation (Green Legacy Initiative), renewable energy, and sustainable agriculture.
Ethiopia has shown leadership in climate diplomacy, particularly in the African Union (AU) and international forums. By advocating for increased climate financing and technology transfer, Ethiopia can help ensure that funding and similar climate funds prioritize Africa, including Ethiopia, for investment.
To promote financing of Cooperative Framework Agreement (CFA) projects on the Nile River, Ethiopia can take several strategic approaches:
Ethiopia can engage institutions such as the World Bank, African Development Bank (AfDB), and other multilateral development banks to secure funding. These institutions are often keen to support transboundary water management and regional development projects, especially in water-scarce regions like the Nile Basin. Ethiopia can highlight the socio-economic and environmental benefits of equitable Nile water use to attract funding for CFA-based initiatives.
Through CFA, Ethiopia can work with other Nile Basin countries to form a unified front when seeking regional or international financial support. A cooperative approach can attract greater financial backing, especially when projects are framed as benefiting multiple countries, promoting sustainable development, and preventing water-related conflicts.
Ethiopia can encourage private sector involvement by establishing public-private partnerships for Nile water infrastructure projects. By offering incentives, tax breaks, or shared risk mechanisms, the Ethiopian government can attract private investments to build water management systems, irrigation projects, and hydropower plants, which align with the goals of the CFA.
Moreover, Ethiopia can tap into green climate funds and other global financing mechanisms aimed at supporting climate resilience. Projects focused on sustainable water management, clean energy (such as hydropower from the GERD), and environmental conservation can attract financing from climate funds like the Green Climate Fund (GCF) or the Global Environment Facility (GEF).
In addition, Ethiopia can seek direct development aid from countries that have strategic interests in African development, such as China, the European Union, and Gulf countries. By aligning the goals of the CFA with broader development objectives, Ethiopia can position these projects as key drivers of economic growth, poverty reduction, and regional stability, which may attract external aid and development assistance.
Exploring innovative financing mechanisms like issuing infrastructure bonds specifically targeted for water-related projects within the CFA framework. These bonds can attract local, regional, and international investors who are interested in supporting sustainable infrastructure in developing economies.
By positioning water infrastructure projects as key to enhancing regional trade and economic integration, Ethiopia can attract investment from regional organizations like the Common Market for Eastern and Southern Africa (COMESA) or the African Union. Such projects can be aligned with regional economic development plans that facilitate trade, energy sharing, and agricultural productivity.
BY SOLOMON DIBABA
THE ETHIOPIAN HERALD TUESDAY 22 OCTOBER 2024
