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When the People’s Currency Becomes the Currency of Their Own Annihilation
In the annals of Ethiopian history, no project has stirred such profound collective emotion as the Grand Ethiopian Renaissance Dam (GERD). It was a vision that transcended ethnic lines, generational gaps, and economic classes. From elderly citizens to schoolchildren, from rural farmers to the diaspora professional, the call to contribute resonated deeply. The mobilization was unprecedented – civil servants donated a month’s salary, farmers and students gave what they could, and the state issued “GERD bonds” to raise funds. According to reports, approximately 91 percent of the funding came from the state budget, complemented by bond purchases and voluntary contributions from citizens and diaspora communities.
One cannot forget the powerful imagery of religious fathers, particularly from the Ethiopian Orthodox Tewahedo Church, declaring that “not only people who can, except those in the womb and the dead, everyone must contribute.” This was the rallying cry that defined a generation. The direct public contribution for the construction, in the form of bonds, cash, and text messaging, reached 15 billion Birr.
The dam, financed largely through these domestic contributions, was more than just a concrete structure on the Blue Nile – it was a symbol of defiance against colonial-era treaties and a testament to the “can-do” spirit of an Africa seeking self-reliance. It was supposed to be the engine of economic transformation, the harbinger of light that would pull millions out of the darkness of poverty and into a new era of prosperity.
The Paradox of Exporting Power While Citizens Sit in Darkness
The core of the disillusionment lies in a deeply paradoxical situation. The GERD, with an installed capacity of 5,150 megawatts, doubles Ethiopia’s power generation capacity. It is a feat of engineering that positions Ethiopia as a regional energy powerhouse. The government has been quick to trumpet the potential for electricity exports to neighbouring countries like Kenya, Djibouti, Sudan, and soon Tanzania, projecting significant foreign currency earnings of around $420 million this fiscal year.
Ethiopian Electric Power (EEP) has reported generating $338.7 million from electricity exports in the past fiscal year- a 135 percent increase over the prior year’s $140 million—with the GERD accounting for 51 percent of the country’s total power exports. This is presented as a triumph of “energy diplomacy” and regional integration.
Yet, while the government celebrates the prospect of earning foreign currency, millions of Ethiopian households – particularly in rural areas and even in major cities like Addis Ababa – are still in the dark for many hours. Despite the country’s total installed capacity reaching approximately 10,000 megawatts, nearly half of the population still lacks reliable electricity access. The electrifying promise of the dam has not translated into a reliable or affordable electricity supply on the ground.
The How Ethiopia’s Monument Became a Monument to Betrayal
Despite soaring expectations, Ethiopians now endure the cruelest irony: they pay the highest electricity tariffs in their history (compared to their income) while enduring relentless power interruptions that have become disturbingly normal. The very people who emptied their pockets – farmers surrendering their oxen, teachers donating salaries, priests blessing the project from the pulpit – built this dam believing it would banish darkness from their homes and factories. Instead, they watch their sacrifice generate foreign currency that flows outward, while they remain shackled to sporadic, exorbitantly priced power that mocks their dreams.
Now, the established fact is that the revenue generated from selling GERD’s electricity is not being used to improve the lives of the contributors or to subsidize their power bills. Instead, the government is using the foreign currency from power sales to purchase “bullets”, drones, and other military equipment to kill and suppress its own people.
This accusation, fueled by the devastating two-year civil war in Tigray and ongoing conflicts across the nation, has transformed the GERD from a symbol of national unity into a focal point of national grievance. The dam, once a symbol of hope, is now perceived by many as a tool of oppression, where the public’s sacrifice is being weaponized against them.
The foreign currency generated from exports is a valuable resource in a country facing severe foreign exchange shortages. The government’s decision to prioritize earning foreign currency through exports over subsidizing and guaranteeing affordable, reliable domestic power has created a deep chasm between the state and its citizens. The belief that public funds and dam revenues are being diverted to fund conflict rather than development is not merely a fringe conspiracy theory – it reflects the deep-seated governance crisis and the lived reality of many Ethiopians who continue to suffer from economic hardship, conflict, and a lack of basic services.
“Power on Paper”: The Infrastructure Gap
Development experts have highlighted a persistent and critical flaw: a myopic focus on generation rather than distribution. While the energy is being produced, the transmission network to deliver it remains underdeveloped. Urban Ethiopia already has high rates of electrification, but rural regions remain poorly connected. Without massive investment in grids and distribution, much of the dam’s output risks remaining “power on paper”.
This gap matters immensely for Ethiopia’s broader ambitions. Citizens who contributed their hard-earned money—often from meager savings—find themselves paying five to ten times more for electricity than they were promised or facing intermittent supply from the very project they funded. The GERD is thus both an immense achievement and an unfinished project: energy has been created, but its fruition for the Ethiopian people remains uncertain.
A Missed Opportunity for National Transformation
The government and its supporters argue that the GERD is a catalyst for development, a “green solution” that will eventually bring benefits. Officials emphasize the dam’s role in strengthening Ethiopia’s appeal to foreign investors, particularly in manufacturing, with industrial parks expected to require approximately 2,500 megawatts of electricity over the next five years.
Yet, this official optimism starkly contrasts with the lived experience of the population. The GERD has illuminated the capacity of the Ethiopian people to unite, but it has also thrown a harsh light on the failures of leadership to translate that unity into tangible, equitable progress. The GERD now stands as a powerful testament to a missed opportunity for genuine national transformation—a grand promise broken, where the people who sacrificed for the light remain in darkness.
Editor’s Note: Views in the article do not necessarily reflect the views of borkena.com
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I would like to thank the Author of this wonderful article.
Every day & night, we have a power disruptions for at least an hour. As you mentioned, although we supported and paid until our last penny, our reward is betrayal! To whom, can we address such absurdity? The electricity payment is highly skyrocketing non-stop. Now, we’re accustomed to it; their so-called media armies work very hard in millions to keep our mouth shut so that not to spill any word against the betrayer regime. He lied against our mothers who carry heavy log of firewood. Believe me this people deliberately killing our People, our Land, everything. We watch, Ethiopia is dying in front of us. All other that dazzle, glitter, splendor is simply fooling a catch after the Wind!
Simply its disturbing.
Thanks.