The United States according to reports is cutting $100m (£75m) in aid to Ethiopia over a contentious mega dam being built on a tributary of the River Nile.
A government source indicated that the move had been caused by Ethiopia’s move to start filling the dam before reaching agreement with Egypt and Sudan.
Egypt has long been resisted to any development on the Nile that could decrease the amount of water it receives.
Per what Ethiopia is saying, it needs the dam to provide a reliable electricity supply.
Once fully operational, the Grand Ethiopian Renaissance Dam (Gerd) will have the record of beign the largest hydro-electric plant in Africa and provide power to up to 65 million Ethiopians.
“Up to $100m or so will be affected, of which $26m is funding that expires at the end of the [financial year],” a US congressional source told newsmen.