Ethiopia plans to become a top regional exporter in electricity under a new 2015-2020 development plan. It is attempting to tap several rivers for power generation, which is a part of its plans to boost its manufacturing, help to industrialize its agrarian economy, and to export power to countries in Northern and Southern Africa. A $4 billion deal was signed with an U.S.-Icelandic firm in 2013 to build a private-run 1000 megawatt geothermal plant and more power generating projects are being negotiated with other international companies. Egypt is dependent on the Nile, and is concerned that the Renaissance Dam would reduce the river’s flow. In addition, Kenya stated that the Gibe 3 dam and its related irrigation scheme could reduce the volume of water in its Lake Turkana. Low levels of rainfall this year have had an adverse impact on existing dams, and currently four hydropower plants are producing at low levels due to low water levels. There are several more concerns about these projects, namely the current ongoing severe drought and the environmental ramifications.
globalEDGE Blog - By Tag: sudan
The Nile River is a major influence on the economies it encompasses, and in the past it has been controversial how the energy, space, and water is allocated amongst the countries it passes through. Ethiopia is constructing a massive dam costing billions of dollars on the Blue Nile, which will distort the previous allocation of water agreed by the countries surrounding the river. Most of the disagreement in the initial stages of project development stemmed from this allocation dispute, but the presidents of Egypt and Sudan, as well as the Ethiopian Prime Minister, all recently signed a contract pledging to better share the water and resources of the Nile. On Monday, Egypt agreed to a preliminary deal with Ethiopia on the construction of the dam.
Lately Africa has been attracting beer companies from around the world, as they look to start new ventures. Breweries interests have already begun in Johannesburg, South Africa, and Juba, Sudan. At the end of 2008, Africa produced 5% of the world’s beer supply, a number which has continued to grow since then. Although beer production has been popular in Africa since the 1990’s, companies have begun to increase their investments in the continent since African locals have struggled to be able to mass produce the product in the past.