The number of industries has increased in recent years as Ethiopia has focused on transforming from the agricultural-led economy into the industry. The role of industry in the rapid economic growth that the country is registering is not easy. In order to maximize its role in the country’s development, the government has not only attracted investors but also built large industrial parks and opened up for jobs. While the industries’ booming is promising for the country’s future growth, some factories produce less than their capacity because of lack of power supply.
Although Ethiopia has used various power options to solve the sector’s challenges, and to improve the electricity access of its people, it has not been able to overcome yet. It is regrettable that the delay of construction of Renaissance Dam due to various problems which is expected to solve the problem. Beyond that, the Egypt’s restless act and USA’s decision making stance on Ethiopia’s own river and Dam is a current phenomenon highly disappointed the entire Ethiopian people.
Addis Zemen Daily transcribed a discussion held between the Ethiopian Broadcasting Corporation and investors on the Grand Renaissance Dam and its impact on energy supply for industries and its contribution to accelerating national growth.
On the discussion, Belayneh Kindie, owner and Chief Executive Officer of Belayneh Kindie Business Group, explained that the Grand Renaissance Dam is his economic, social and political issue. Explaining the economic issue he said, the dam provides significant economic benefits, especially for investors engaged in industry like him. As a result, the country’s growth will accelerate; employment opportunities will also be created. The growth required is recorded, especially when industries those work is disrupted due to power supply are able to produce with full capacity.
While explaining its social issue he said that the Ethiopian people, who have been using forest and forest products as source of energy for centuries, will improve their social lives by using electricity; will simplify daily life by using electronics and eliminating backward practices. And also eliminates the risk to the community induced by manmade crisis, deforestation.
From the political point of view, the Renaissance Dam has united Ethiopian people for one objective. The dam is a symbol of the unity of the people and the river is their natural gift and wealth. “As our forefathers did wonderful history at the Battle of Adwa, this generation puts its legacy on GERD by reaffirming its beneficiary and securing the sovereignty of the country,” said Belayneh.
According to Belayneh, Ethiopia is one of the developing countries. Energy is one of the major factors in its development. The demand for energy remains unresolved today as the country continues to accelerate its growth in industry.
The investors want to make changes by planting factories in order for the country to prosper in industry; but they could not find adequate and reliable power supply. For example, large-scale agro-processing plants being built in the Oromia and Amhara regions need over 13,000 MW; but that much power is not available from the existing power supply. So it is in the Renaissance Dam that great industries like these and others will be built in the future, have put their prospect. According to Belayneh, the country also needs other energy options beyond the Renaissance Dam to ensure its transition from agriculture-led to industry and ensure its prosperity.
Electricity is a critical issue for small and medium-sized enterprises engaged in welding, milling, woodworking, and other industries. There is no substitute for the power supply that determines the development of a country. That is why the people of Ethiopia are so focused on the Renaissance Dam that they are drawn and cared for like the pupil of their eyes.
All members of the community have stood firm and contributed their share to complete the project quickly and make their hope true. Mothers have given from their low income; Children, youth, seniors, civil servants, investors, security forces, farmers all raised their hand to the Nile visualizing the future; and have put their legacy on it.
Belayneh recalled his support of purchasing 27 million Birr bonds through his organization and employees in addition to coordinating the business sector on the Nile issue. By actively participating in the ongoing support program, he is keen to accelerate the nation’s journey towards prosperity by solving the industries’ energy problems.
Mustafa Awol, CEO of Mullege coffee export for his part said that the Renaissance Dam is the fingerprint of this era in which every Ethiopian is involved. The Dam has significant importance for industrial development, technological advancement, agricultural development, trade, and economic development in general. It is also a wonderful story of the era and hope for the posterity that has made the people of Ethiopia speak the same language and will be a living legend like victory of Adwa.
When the Renaissance Dam is completed, industries will have the opportunity to expand not only in the cities but also in the countryside. In this way, the urban condensation will relax; cities will be free from pollution; employment opportunities for many citizens are created and the country’s export market will grow.
Development expands; especially in rural areas answering inquire of roads, water, and electricity. It also enables to generate foreign currency by providing power supply to foreign markets. According to Mustafa, the benefits of the dam are innumerable. In general, it is a cleanser of poverty.
For the realization of this vision, Mustafa has been supporting as any other Ethiopians. Over the past years, his organization and employees have purchased 18 to 20 million Birr bonds, and they are ready to do the same, he said.
Tadesse Tilahun, CEO and shareholder of National Oil Ethiopia for his part pointed out that the Renaissance Dam’s contribution to power is a major factor in Ethiopia’s transition to industry. He said that 88 percent of Ethiopia’s energy supply is derived from wood. This lessened economic growth; harmed the health of the community; failed to update its livelihoods and has slumped forest resources. Realization of the Grand Renaissance Dam will change all these by empowering the capacity of industries, especially in the context of the country’s Growth and Transformation Plan.
To this end, the company’s shareholders along with the employees have purchased 37 million Birr bond in two rounds. He added that it is the deed of all time continuing to support the Dam’s completion by counteracting the problems coming across.
The investors have also expressed their concern that statements of Egypt and the US about the Dam have dismayed and enraged them. According to Belayneh, the Ethiopian government’s initial statement on the matter is remarkable. It is also important that the voices of scholars, diaspora, and the public are complaining.
He added that history shows that Egypt had been plotting against Ethiopia in favor of the Nile. Neither the Ethiopian people nor the government will accept their ideas. Ethiopian people are as generous as to share what they have in store let alone the Nile, but if it is with love. For anyone who comes by force, they never turn back.
“The government should continue to negotiate with patience. But when it is lagging, nobody loses his identity and his sovereignty. We did not have a leader in the past, nor will we in the future that betray the nation’s benefit. As a matter of fact, if the matter is out of line, I’m ready even to serve as a soldier,” said Belayneh.
According to Tadesse, Egypt’s depraved performance is tragic. The World Bank may be aware of the details, but the United States might have made a mistake if it did not have enough information. Ethiopia’s energy consumption is 88 percent based on fire wood. In contrast, Egypt has more opportunities. It gets about 3,000 MW from five dams built on the Nile. It also generates more energy from nuclear. It holds high levels of groundwater. Despite this, it is unfair for Egypt to claim as a victim.
Thus, Ethiopia’s effort to construct the Dam aiming to get rid of poverty is appreciable, but the claim it is to harm Egypt is wrong.
It is unfair to take the Nile issue to US crossing miles while the 11 riparian member states are concerned. If the issue can be looked at, it is the African Union, not the United States. The main purpose of the African Union is to solve the problem of Africa.
“Another thing to note is that if we do not construct the Dam and unable to change our economy and continue in the present situation, the Nile’s existence itself would be at risk. The reason is rivers existence depends on forests. As the society continues to burn the forest, the land will become deserted and rivers can dry up. Thus, Egypt should support the project for its own sake,” he stressed.
Mustafa said that it is appropriate to talk, discuss and negotiate, but the intervention of the US and the World Bank is crossing the red line. Trying to manipulate comes from ignorance of Ethiopia. It is unacceptable that 22 Arab countries recently voted unanimously condemning Ethiopia while keeping silent when Syria, Yemen and Libya are destroyed by civil war.
The Ethiopian herald June 2,2020
BY BACHA ZEWDIE
