Ethiopia optimistic about funding for development projects following CFA adoption

By Muluken Yewondwossen, photo by Anteneh Aklilu

Ethiopia conveyed its expectation that funding for development projects reliant on the Abay (Nile) River basin would become available following the adoption of the Cooperative Framework Agreement (CFA), which made it possible for the Nile River Basin Commission (NRBC) to be established.

Building trust among basin nations and promoting equitable transboundary water cooperation in the area were the main goals of the Nile Basin Initiative (NBI), which was formally founded by basin nations around 25 years ago.

The CFA, which has been approved by more than half of the member nations, has been the subject of negotiations for the past almost a decade and a half among the member countries.

The status of deposition of instruments of ratification or accession to the CFA and the date of entry into force of the CFA were formally confirmed by the African Union (the Depositary of the CFA) on September 4, 2024, in line with Articles 43 and 45 of the CFA, which came into effect on Sunday, October 13, to pave the way for the formation of the NRBC.

Following the historic decision, Habtamu Itefa, Minister of Water and Energy (MoWE), said that this is indeed a testament to the basin countries’ collective resolve to cooperate.

“This commission will manage and safeguard the Nile River for the benefit of all and will be the cornerstone of our cooperative efforts,” he said.

“The Cooperative Framework Agreement, the product of more than ten years of negotiations, is a testament to our shared determination to harness the Nile River for the benefit of all, ensuring its equitable and sustainable use for future generations,” a statement released by NBI on Sunday, October 13, said on its part.

“This is a moment to congratulate the governments and people of the ten Nile riparian countries, and all partners and stakeholders, for their patience, resolve, and dedication to this cause,” it added.

The main idea behind the creation of the NBI, which is currently being transferred to the NRBC, is to increase international collaboration in the Abay River basin.

According to analysts, this new initiative will need international financiers and partners to provide funds for basin-aligned economic initiatives.

Habtamu also stated his hope that international partners will assist Ethiopia’s aspirations for its Abay basin projects, to which Ethiopia supplies more than 85% of the River Nile.

The Minister stated that the basin nations will finance projects, adding, “There will be projects that shall be developed jointly.”

He informed Capital that both bilateral and multilateral partners would be interested in funding development initiatives that will improve collaboration and foster shared growth among the nations that make up the river basin, not only in Ethiopia.

While some partners have expressed their happiness, others have shown restraint. “But we have to work strongly to mobilize funds for developmental projects,” he continued.

He noted that with the assistance of an international partner, his administration is collecting vital data on the Abay tributaries, such as the Baro Akobo River.

He said, “We hope that partners will support us for future development. We have identified the rivers to sort detailed information, which is vital for upcoming developments.”

Since the river basin is one of the most contentious water systems on the planet, most international financial partners are hesitant to support projects on it. Instead, they demand that nations work together to access a fund for projects that would benefit the countries in the basin collectively.

Due to the downstream countries’ lack of commitment, especially Egypt, most of the potential development projects that would benefit the eastern Nile countries are still in the early stages of development, even though studies are supported by partners like the World Bank and the Norwegian government.

Experts had predicted that the commission’s creation and the CFA’s most recent efficacy would make funding for projects in the river basin available.

International partners, including major ones, supported the NBI’s creation and the CFA discussions. According to experts, the primary motivation for global partners to assist initiatives on the river basin is to establish a foundation for funding.

In its statement, the NBI recalled that the Nile nurtured civilizations, shaped our economies, and defined our cultural heritage and identity, stating, “yet the challenges we face in managing these waters are significant.”

“Our economies are growing, but many in the region remain vulnerable. Climate change, environmental degradation, and growing population pressures threaten the resources we so dearly depend on,” it added.

“This is why the CFA is not merely a legal agreement; it is a vision for how we can come together to ensure the sustainable and equitable use of the Nile’s resources,” it said.

One of the key aspects of the CFA is its promotion of transboundary cooperation and ensuring that all riparian states have a voice in the management of the river’s resources.

The NBI statement stated that the agreement enshrines the principles of collaboration, equitable use, and mutual respect among the countries that share the Nile’s waters.

The CFA further establishes a mechanism for peaceful dispute resolution, fostering a culture of dialogue and understanding.

The CFA also aims to rectify historical imbalances in access to the Nile’s waters and ensure that all Nile Basin countries, whether upstream or downstream, can benefit from this shared resource.

“The CFA recognizes the legitimate needs of all Nile Basin states and commits us to the equitable sharing of these waters in a manner that promotes sustainable development,” the NBI said in the statement.

The entry into force of the CFA also paves the way for the establishment of the NRBC.

The primary objectives of the Commission are four, including promoting and facilitating the implementation of the principles, rights, and obligations provided for in the CFA, and serving as an institutional framework for cooperation among Nile Basin States in the use, development, protection, conservation, and management of the Nile River Basin and its waters.

The CFA was negotiated, and all its Articles except one (Article 14, which mentions water security) were agreed upon by all nine member states of the NBI, including Egypt and Sudan.

The pending Article was placed in the Annex of the CFA for resolution within six months of the establishment of the Commission.

The agreement was negotiated among nine Nile riparian countries (Burundi, DR Congo, Egypt, Ethiopia, Kenya, Rwanda, Sudan, Tanzania, and Uganda) and comes into force after its signature and ratification by five countries (Burundi, Ethiopia, Rwanda, Tanzania, and Uganda) and accession by a sixth country – South Sudan.

The basin, which stretches over 11 countries, including Eritrea, which has hitherto participated in Nile cooperation efforts in the role of observer, sustains more than half a billion people.

“We must use the resources of the Nile not just for today, but for the generations that will come after us. The CFA ensures that we protect the Nile and its ecosystems, utilizing its waters in ways that do not jeopardize the future,” Habtamu said, calling on all Nile Basin states to fully embrace the CFA and uphold its principles with the utmost integrity.

Exit mobile version