On February 3, 2026, Ethiopian Prime Minister Abiy Ahmed issued a firm denial regarding claims by U.S. President Donald Trump that the Grand Ethiopian Renaissance Dam (GERD) was financed by the United States.Â
Speaking to the House of Peoples’ Representatives, PM Abiy stated that Ethiopia did not receive “a single birr” in loans or financial aid from any foreign sources for the project.
The $4 billion mega-dam was entirely financed through domestic taxes, bond sales, and contributions from Ethiopians living both in the country and the diaspora.
Pietro Salini, CEO of Webuild (the project’s prime contractor), supported this stance, noting that not a single international lender was willing to invest in the project.
Trump reportedly made the assertion in Davos during the World Economic Forum, claiming the U.S. had “stupidly financed” the dam and that it was blocking the Nile’s flow to Egypt.
The GERD, Africa’s largest hydroelectric plant, was formally completed in September 2025 and is currently generating power to address Ethiopia’s energy shortages.Â
Ethiopia maintains that the dam is a symbol of national sovereignty and self-reliance, while Trump has positioned himself to restart mediation efforts between Ethiopia, Egypt, and Sudan.
By Anthony Solly
