VOE | Addis Ababa | July 30, 2026 – Ethiopia’s Minister of Water and Energy, Habtamu Itefa, has argued that Egypt should compensate Ethiopia for using the Nile’s waters, saying downstream countries have benefited for decades from Ethiopia’s natural resources without providing any financial return.
Speaking in an interview with Fana Broadcasting Corporate (FBC), the minister said Egypt has used the Nile free of charge while building its agricultural and economic development, despite the fact that the majority of the river’s water originates in Ethiopia. He argued that Ethiopia deserves compensation for the water resources that sustain downstream economies.
Habtamu also emphasized that Ethiopia invests significant effort in managing water flows to reduce flood risks for downstream countries, particularly Egypt. According to him, Ethiopia’s water management, including the operation of the Grand Ethiopian Renaissance Dam (GERD), contributes to regulating seasonal flooding and improving the predictability of water releases.
The minister’s remarks come amid renewed tensions over the Nile Basin, with Ethiopia accusing Egypt of continuing diplomatic efforts aimed at discouraging upstream nations from developing their water resources. Ethiopian officials argue that scientific evidence and the successful operation of GERD have undermined many of the concerns previously raised against the project.
Analysis
Habtamu Itefa’s comments represent one of Ethiopia’s strongest public arguments for shifting the long-standing debate over the Nile from water allocation to economic value and benefit sharing.
For decades, Egypt has relied on the Nile for approximately 90 percent of its freshwater supply, making the river central to its agriculture, drinking water, and industry. Egypt maintains that its historical rights should be protected, while Ethiopia argues that colonial-era agreements excluded upstream states and therefore cannot determine modern water governance.
Ethiopia’s position has evolved significantly since the completion of the Grand Ethiopian Renaissance Dam. Rather than focusing solely on its sovereign right to utilize the Blue Nile, Addis Ababa is increasingly highlighting the economic services it says it provides to downstream countries. Ethiopian officials contend that regulated water releases reduce destructive flooding, minimize sediment, improve water management, and create more stable river flows that also benefit Sudan and Egypt.
However, the proposal that Egypt should pay Ethiopia for Nile water is politically and legally controversial. Existing international practice on transboundary rivers generally emphasizes the principles of equitable and reasonable utilization and the obligation to avoid significant harm, rather than charging downstream states for naturally flowing water. While countries sometimes pay for jointly managed infrastructure or negotiated water transfers, there is no established international legal requirement compelling a downstream country to pay an upstream state simply because a river originates there.
The remarks are therefore likely to strengthen Ethiopia’s negotiating position domestically while drawing criticism from Cairo, which has consistently rejected any suggestion that its historical dependence on the Nile should become subject to financial compensation.
As GERD moves into full operation and Ethiopia expands its role as a regional energy exporter, the dispute between Addis Ababa and Cairo appears increasingly centered not only on who controls the Nile’s waters, but also on how the economic benefits of the river should be shared in the future.
