Ethiopia Says Not Seeking to Harm Egypt, Sudan through GERD

An aerial view of Grand Ethiopian Renaissance Dam on the Blue Nile River in Guba, northwest Ethiopia. Handout picture taken on July 20, 2020. (AFP)
An aerial view of Grand Ethiopian Renaissance Dam on the Blue Nile River in Guba, northwest Ethiopia. Handout picture taken on July 20, 2020. (AFP)
TT
20

Ethiopia Says Not Seeking to Harm Egypt, Sudan through GERD

An aerial view of Grand Ethiopian Renaissance Dam on the Blue Nile River in Guba, northwest Ethiopia. Handout picture taken on July 20, 2020. (AFP)
An aerial view of Grand Ethiopian Renaissance Dam on the Blue Nile River in Guba, northwest Ethiopia. Handout picture taken on July 20, 2020. (AFP)

Ethiopia stressed that the mega dam it is building on the Blue Nile is not aimed at harming the two downstream countries, Sudan and Egypt.

In statements on Friday, Minister of Water, Irrigation and Energy Seleshi Bekele stressed that Addis Ababa is pinning its hopes of economic development and power generation on the Grand Ethiopian Renaissance Dam (GERD).

Meanwhile, Egypt is intensifying efforts to develop the country’s water system.

The Egyptian Irrigation Ministry said its current vision aims to establish a comprehensively develop the country’s water system by repairing its irrigation canals. It has already inaugurated modern irrigation systems to rationalize water consumption.

Egypt suffers from an acute shortage of water resources and relies on the Nile River for more than 90 percent of its water.

The Egyptian government is implementing a national strategy to manage and meet water demand until 2037, with investments of nearly $50 million, including projects to desalinate seawater, implement modern irrigation methods in agricultural lands and treat wastewater.

Addis Ababa finished in July 2020 the first phase of filling the GERD reservoir, in preparation for its operation, achieving its target of 4.9 billion cubic meters. This year, it targets filling an additional 13.5 billion cubic meters.

Cairo and Khartoum are demanding a legally binding agreement on the filling and operation to safeguard their water rights, while Ethiopia refuses to commit to any agreement that limits its capability to develop its resources.

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

For nearly a decade, the African Union-sponsored talks between Cairo, Addis Ababa and Khartoum over the operation and filling of the dam have faltered.

The latest round of talks between Egypt, Sudan and Ethiopia in Kinshasa ended in early April with no progress made.



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
TT
20

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.