Addis Ababa, March 21, 2025 (FMC) — The Grand Ethiopian Renaissance Dam (GERD) is crucial for optimizing the African Continental Free Trade Area (AfCFTA), UNECA Regional Integration and Trade Division Director Stephen Karingi said.
The director noted that the GERD directly supports AfCFTA’s objectives by addressing energy deficits in Southern and East Africa, enabling electricity trading and powering manufacturing.
“Given the energy shortages in Southern Africa and parts of East Africa, the investments made through this dam offer the opportunity to not only trade electricity but also power manufacturing processes in countries looking to capitalize on the AfCFTA. The dam is, therefore, both a driver and enabler for the optimization of AfCFTA,” he stated.
Furthermore, Karingi emphasized the growing importance of renewable energy for industrial competitiveness, noting that carbon footprints will increasingly influence trade.
According to him, GERD has the potential to address energy shortages and boost manufacturing across Africa.
Ethiopia’s ability to export GERD-generated electricity to energy-deficient East African countries via the East African Power Pool would play a huge role, he told local newswire service ENA.
For instance, the 500-kilovolt interconnector between Ethiopia and Kenya is vital, linking the East African Power Pool to the Southern African Power Pool, facilitating broader electricity trading.
Karingi explained that a 500-kilovolt line has been established between Ethiopia and Kenya and the interconnector provides the opportunity for channeling electricity from Ethiopia into the East African Power Pool and further link it to the Southern African Power Pool.
The Grand Ethiopian Renaissance Dam is designed to generate approximately 15,759 GWh of annual electricity. It features a discharge rate of 1,547 m³/s.