AMERICA’S Department of State recently suspended $130 million worth of aid to Ethiopia because of “a lack of progress” on negotiations pertaining to the construction of the Grand Ethiopian Renaissance Dam on the River Nile.
According to state department officials, the decision to cut aid came as a result of a direct “guidance” from President Donald Trump.
Estimates show that almost half of Ethiopia’s budget is linked to foreign aid. The country depends on economic assistance to support its infrastructure projects, health care and education expansion efforts, and security sector reforms.
By suspending some aid, the United States has reopened the debate on whether developing countries should depend on foreign aid to realise their economic goals.
The decision to suspend aid to Ethiopia comes after almost 10 years of regional and international efforts to mediate the dam dispute between Egypt and Ethiopia. Almost 60% of Ethiopians do not have access
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