Because of its "unilateral decision" to fill the Renaissance Dam ... America cuts $ 100 million in aid to Ethiopia

The United States decided to cut $ 100 million from its aid to Ethiopia, amid a dispute with Egypt and Sudan over the Renaissance Dam that Addis Ababa is building on the Nile River.

The US State Department stated that Secretary Mike Pompeo decided to suspend the aid "due to its unilateral decision to fill the Renaissance Dam."

Pompeo explained that the decision to suspend aid to Ethiopia was directed by President Donald Trump and due to the lack of progress in negotiations.

Today, Wednesday, a congressional source revealed to Reuters that the United States decided to cut $ 100 million in aid to Ethiopia.

The source told Reuters in an e-mail that "the United States decided to reduce the aid" due to Ethiopia's position on the Renaissance Dam negotiations.

"About $ 100 million or so will be affected, including $ 26 million in financing, which expires by the end of the fiscal year," the letter said.

The source said that most of the funding, which is about to expire, is for regional security, border security, political competition, consensus building and nutrition.

He added that funding for the fight against AIDS, the Food for Peace program, international aid in disasters, and aid for migration and refugees will not be affected.

Part of the construction works of the Grand Ethiopian Renaissance Dam (Reuters)

Disagreements

The dispute is raging between Ethiopia, Egypt and Sudan over how to fill and operate the Renaissance Dam, and the disagreement still exists despite the start of filling the reservoir behind the dam last July.

The United States and Ethiopia have long had a close relationship, as Addis Ababa has been working with US officials to counter armed groups in Somalia.

But US officials have been frustrated by their inability to seal the deal on the dam.

Ethiopia says the $ 4 billion dam will generate electricity and help lift its 109 million people out of poverty.

Upon completion, the dam will generate 6,450 megawatts of electricity - more than twice Ethiopia's current capacity - and is the cornerstone of the country's bid to become the largest source of energy in Africa.

But Egypt depends on the Nile for more than 90% of its fresh water supplies, and it fears that the dams will increase the current shortage.

Negotiations were stalled in the past due to Egypt and Sudan's demands that any agreement be legally binding with regard to the mechanism for resolving future disputes and how to manage the dam during periods of low rainfall or drought.