The United State Department has announced on Wednesday that it has decided to place a “temporary pause” on $100 million in foreign assistance to Ethiopia. The reason for this action is the United States’ response to Ethiopia’s unilateral decision to start filling a reservoir at the Grand Ethiopian Renaissance Dam (GERD).  The decision was “based on guidance from the president” and that cuts will impact programs linked to regional security and could amount to roughly $100 million. The cut would not be made to programs tackling HIV/AIDS, conflict, drought, displacement, and other humanitarian challenges.   

Eyob Tekalign, Ethiopia’s state finance minister, told VOA that his government is demanding an explanation from the U.S. for the aid cut. He also said he believed the situation can be resolved quickly. “We don’t think that the U.S. has thought this through carefully because the partnership with the U.S. and Ethiopia is solid, very strong and continues to be,” he said. “We consider this a misunderstanding.  We don’t think this will last. We are very hopeful that they will reconsider because Ethiopia is doing what is absolutely right in all senses of the word legally, morally as well.” Ethiopia says the dam will generate electricity and help lift its population out of poverty. It will have an installed capacity of 6,450 megawatts – more than doubling Ethiopia’s existing capacity – and is the centerpiece of its bid to become Africa’s biggest power exporter. Egypt, Ethiopia and Sudan have been locked in a bitter dispute over the GERD and the waters of the Nile for nearly a decade.  The next round of discussions between Egypt, Ethiopia and Sudan is scheduled for September 14.