EU Commissioner Hails GERD as Model for Africa's Self-Funded Development

A New Era of African Infrastructure Development

The African Union Commissioner for Infrastructure and Energy, Lerato Mataboge, has highlighted the Grand Ethiopian Renaissance Dam (GERD) as a significant milestone in Africa's capacity to finance and implement transformative infrastructure projects using its own resources. This statement was made during a press conference focused on accelerating Agenda 2063, advancing digital transformation, and implementing the Programme for Infrastructure Development in Africa.

Mataboge emphasized that the GERD is not just an engineering marvel but also a powerful demonstration of domestic resource mobilization. She pointed out that the self-construction of the dam serves as an example for other African nations, encouraging them to adopt similar strategies in financing their own priority infrastructure projects through local resources.

She noted that the rising global cost of capital is increasingly challenging for African countries aiming to fund large-scale infrastructure projects. "The cost of capital is increasing globally, and this is becoming a major challenge for Africa in financing infrastructure," she said.

In addition to financial challenges, Mataboge mentioned that climate change is further straining fiscal resources. The impact of droughts and floods on infrastructure systems and national economies throughout 2026 has been significant. She stressed the importance of addressing these issues to ensure sustainable development.

According to the Commissioner, global strategic priorities are shifting from traditional minerals to critical natural resources, with water emerging as a key asset for regional stability and development. In this context, she revealed that the African Union's 2026 theme will focus on water and sanitation, an issue currently under discussion within the Union.

Mataboge stressed that water and sanitation must be regarded as core economic infrastructure. "Access to clean water and sanitation is indispensable to accelerate industrialization, operate factories efficiently, and build a healthy workforce," she said.

She disclosed that 300 million people across Africa lack access to safe drinking water, while 780 million are without adequate sanitation services. Closing the water investment gap will require an estimated 30 billion US dollars, she said, noting that several programs are already underway to address the shortfall.

Mataboge underlined that narrowing Africa's infrastructure gap demands sustained resource mobilization and long-term planning, citing Ethiopia's construction of the GERD as a notable achievement in that regard.

Regional Cooperation and Strategic Resource Exchange

Beyond infrastructure financing, the Commissioner also highlighted Ethiopia's supply of water to Djibouti as a practical example of regional cooperation. She stressed that continental integration should extend beyond trade in goods to include the exchange of strategic resources among African countries.

"It's not just about trade of products," she said. "It's also trade of our own resources among ourselves for our own development."

This approach emphasizes the importance of collaboration and mutual support among African nations to achieve shared goals and drive sustainable growth.

Challenges and Opportunities

Despite the progress made, there are still significant challenges that need to be addressed. The increasing cost of capital, the impacts of climate change, and the need for substantial investments in water and sanitation infrastructure remain pressing issues.

However, the success of the GERD and the ongoing efforts to improve access to clean water and sanitation demonstrate the potential for African countries to overcome these challenges through innovation, cooperation, and strategic planning.

By leveraging local resources and fostering regional partnerships, African nations can create a more resilient and prosperous future for their citizens.