Egypt committed to diplomatic solution on Nile dam dispute with Ethiopia, says PM

Egypt's Prime Minister Mostafa Madbouly has affirmed his nation's commitment to resolving the dispute over the controversial Grand Ethiopian Renaissance Dam with Ethiopia through diplomatic and political means. Regarding the Nile as "national security and existential importance," Madbouly emphasized that Egypt relies on the river for approximately 95% of its water resources. The situation escalated last week when Egypt and Ethiopia announced the expulsion of each other's diplomats, deepening their already tense relations.

Additionally, Madbouly criticized Ethiopia's attempts to depict Egypt as an obstacle to the development of African countries, asserting that Cairo supports development in all nations, provided it does not harm others, particularly in cases involving shared rivers. He reiterated Egypt's stance that rivers are governed by international law, which establishes cooperation among riparian states regarding shared water resources.

Egypt maintains that clear regulations and the prior consent of both Egypt and Sudan are essential for the operation and management of the Grand Ethiopian Renaissance Dam. The prime minister highlighted that the dam's management should be based on a shared vision to avoid harm to downstream countries, especially during prolonged droughts. The major challenge arises during multi-year droughts, as the dam's refilling could significantly impact Egypt's water resources.

Madbouly defended the Egyptian government's large-scale infrastructure investment program, emphasizing the necessity of building the country's foundations for economic growth following the political turmoil that began in 2011. Egypt was lacking adequate electricity and energy capacity to meet its citizens' needs and support economic growth at the time.

The Prime Minister noted that Egypt's infrastructure drive was crucial for launching its economy, as the state had to take the lead due to political instability and uncertainty making it difficult to attract sufficient private-sector investment into large, long-term projects.

The Egyptian economy grew by 5.1% in the 2025/26 fiscal year, up from 4.4% in the previous year, according to an Egyptian official. The government aims for a growth rate of 5.4% in the current fiscal year, which began in July. This growth is driven by the domestic economy's productive capacity, rather than external factors or exceptional, one-off sources of funding, the official said, denying concerns about the expansion's sustainability.