Egypt Confronting Ethiopia’s Swift Filling of Nile Dam with Fierce Negotiations

Ethiopia's Grand Renaissance Dam is seen as it undergoes construction work on the Nile River in Guba Woreda, Benishangul Gumuz Region, Ethiopia, Sept. 26, 2019. (Reuters)
Ethiopia's Grand Renaissance Dam is seen as it undergoes construction work on the Nile River in Guba Woreda, Benishangul Gumuz Region, Ethiopia, Sept. 26, 2019. (Reuters)
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Egypt Confronting Ethiopia’s Swift Filling of Nile Dam with Fierce Negotiations

Ethiopia's Grand Renaissance Dam is seen as it undergoes construction work on the Nile River in Guba Woreda, Benishangul Gumuz Region, Ethiopia, Sept. 26, 2019. (Reuters)
Ethiopia's Grand Renaissance Dam is seen as it undergoes construction work on the Nile River in Guba Woreda, Benishangul Gumuz Region, Ethiopia, Sept. 26, 2019. (Reuters)

Ethiopia is rapidly advancing in building the Renaissance Dam on the Blue Nile, in clear defiance of Egypt’s warnings that require a binding agreement on the rules of filling and operating the dam to avoid an expected shortfall in its water share.

The construction of the Grand Ethiopian Renaissance Dam (GERD) has reached 78.3 percent, a jump from 74 percent in June 2020, according to Ethiopia’s Ministry of Water, Energy and Irrigation.

In a press briefing on Sunday, Minister of Water, Irrigation, and Energy Sileshi Bekele said the performance attained during the past six months is the fastest since the commencement of construction in 2011.

Authorities started filling the reservoir on July 21, 2020. However, the completion of the first filling phase prior to reaching an agreement with Egypt and Sudan irked both countries.

The dam is expected to hold 13.5 billion cubic meters of water in the upcoming rainy season, said Bekele, adding that of the total 13 power generating turbines, two will also start production during the same period.

Cairo and Khartoum stress the need to reach a binding and comprehensive agreement that guarantees the rights and interests of the three countries, and includes a mechanism for settling disputes on filling and operation of the dam.

They fear the potential negative impact of GERD on the flow of their annual share of the Nile’s 55.5 billion cubic meters of water.

In television statements on Saturday, Egyptian President Abdel Fattah al-Sisi stressed that his country is “fighting in the negotiations to protect the Egyptian people’s rights.”

“Patience will bring the desired results,” he added.

The African Union (AU) has been sponsoring the so far faltered talks between Cairo, Addis Ababa and Khartoum since July 2020, despite the intervention of international actors such as the United States and the European Union with observers.

Egypt hopes the new AU leadership would push forward the stalled talks.

Sisi stressed his country’s keenness to resolve the issue through “serious negotiations to enhance regional security, stability and development.”

Saturday marked the official beginning of the year-long AU chairmanship of Congolese President Felix Tshisekedi, who is replacing Cyril Ramaphosa.

Last week, Tshisekedi visited Cairo, pledged to resume the GERD negotiations under the AU’s umbrella immediately, and expressed confidence that peaceful talks would lead to consensual “outcomes”.



Lebanon Bans Dealing with Hezbollah Financial Entity

A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo
A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo
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Lebanon Bans Dealing with Hezbollah Financial Entity

A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo
A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo

Lebanon's central bank has banned banks and brokerages from dealing with a Hezbollah-affiliated financial institution, according to a circular, a sign of the group's diminished sway over state affairs since its devastating war with Israel.

Keeping up military pressure on the Iran-backed group, Israel on Tuesday launched some of its heaviest airstrikes since a ceasefire in November, saying it hit training camps and weapons depots in east Lebanon. A security source in Lebanon said 12 people were killed, five of them Hezbollah fighters, Reuters reported.

Hezbollah has faced mounting pressures since the war, including financial ones.

In the circular, dated July 14 and reviewed by Reuters, Banque du Liban prohibited all licensed financial institutions in Lebanon from dealing directly or indirectly with unlicensed entities and listed Hezbollah's Al-Qard Al-Hassan as an example.

The US Department of Treasury imposed sanctions on Al-Qard Al-Hassan in 2007, saying Hezbollah used it as a cover to manage "financial activities and gain access to the international financial system".

Bolstered by its powerful arsenal, Hezbollah had long exercised decisive influence over Lebanese state affairs, but it was unable to impose its will in the formation of a post-war government in February.

Al-Qard Al-Hassan, founded in 1983, describes itself as a charitable organisation which provides loans to people according to Islamic principles that forbid interest. Israel struck some of its branches during its war with Hezbollah last year.

Operating as a not-for-profit organisation under a licence granted by the Lebanese government, it has more than 30 branches, mostly in southern Lebanon and the Bekaa Valley.

SHADOW ECONOMY

A Lebanese official said the central bank move had been in the works for months, and reflected US pressure on Lebanon to take action against Hezbollah's financial wing.

Nassib Ghobril, chief economist at Byblos Bank, said Lebanese banks were already careful to avoid dealing with Al-Qard Al-Hassan because it is under US sanctions.

"The important point is that finally the authorities are addressing the shadow economy in Lebanon, which is the real problem," he said, adding that authorities had long failed to address its "toxic effects".

In June, the European Commission included Lebanon in an updated list of high-risk jurisdictions presenting strategic deficiencies in their national anti-money laundering and countering the financing of terrorism.

Last year, global financial crime watchdog FATF placed Lebanon on its "grey list" of countries under special scrutiny.