In Depth Running Dry: Security, Compensation, Incapacity Weigh Down Ethiopian Irrigation Projects
Running Dry: Security, Compensation, Incapacity Weigh Down Ethiopian Irrigation Projects
April 25, 2026
Often lauded as Africa’s water tower, Ethiopia’s potential in surface and groundwater is immense. Nonetheless, the rain-dependent, largely agricultural economy often faces setbacks due to climate change, erratic rain and unpredictability; besides failing to harness its naturally endowed resource potential particularly in irrigation.
Studies estimate that more than half of Ethiopia’s 113 million hectares of geography has a slope of less than 15 percent and is therefore suitable for irrigation. Despite this, irrigation projects all across the country remain bogged down by a number of factors.
A 2025 assessment published by Tadesse Kuma (PhD), senior researcher at the Policy Studies Institute, notes that failure to shift from rain-based to irrigated agriculture costs the Ethiopian economy over one-third of its growth potential, while locking millions in poverty.
The study also criticizes state irrigation projects for their shortcomings, arguing that botched investments in irrigation have done more harm than good in recent decades.
It concludes that 13 large-scale irrigation schemes that were expected to service more than 550,000 hectares have managed to irrigate less than 44,000 hectares, or just eight percent. This is despite nearly 61 billion Birr in irrigation investment prior to 2021, pointing to substantial losses in terms of production, employment, and economic returns.
When Prime Minister Abiy Ahmed (PhD) appointed Abraham Belay (PhD) to lead the newly formed Ministry of Irrigation and Lowlands in 2024, hopes were high that he could turn things around and unlock the sector’s potential.
Nonetheless, exactly two years later, Ethiopia’s irrigation schemes remain as bogged down as ever despite efforts to empower the Ministry and re-ignite stalled projects.
The multidimensional bottlenecks choking irrigation came under the spotlight this week when the Minister appeared in Parliament to present a nine-month performance report. MPs including Etsegenet Mengistu, chair of the parliamentary Legal and Justice Affairs Committee, were curious about the lack of progress.
“Ethiopia’s potential in irrigation is immense. The Ministry of Irrigation and Lowland has the mandate to realize Ethiopia’s efforts toward achieving food sovereignty. The sector has been plagued by non performance, particularly until the political change of 2018. The Ministry has been changing several things since then, but if Ethiopia had realized its potential in irrigation, productivity would have increased substantially,” said Etsegenet.
Lawmakers wanted updates on several lagging irrigation schemes, including those that began in the former Southern Nations Nationalities and Peoples’ Regional State (SNNPR) but have seemingly stopped since SNNPR was split into new regional administrations, as well as schemes that have suffered from a lack of security.
Abraham began his report with a call for more funding, citing that the Ministry is working with a budget of 17 billion Birr (after adjustments) this year despite needing at least three times as much to carry out its responsibilities.
“These past two years, we decided not to embark on any new projects in light of the budget constraints. We’ve decided only to finalize projects already in progress and those facing delays. Even though we have high priority projects designed and in the pipeline, we cannot move ahead with them until we finalize the ones that came before,” said the Minister.
He told MPs that prior to his appointment, the Ministry lacked basic institutional functions like a contract administration office. Abraham claims that over the past two years and under his leadership, the Ministry has opened a functional project office and inaugurated six irrigation schemes that had stalled for years.
He also told lawmakers that experts are busy drafting an irrigation policy with a complementary strategy and framework.
Abraham then went on to provide a point-by-point description of the conditions surrounding the progress of several irrigation projects around the country.
The Minister repeatedly cited security problems as an obstacle to progress, including for the Beles irrigation project in the Amhara Regional State. He told MPs the contractor hired to implement the scheme was unable to access the project site, where progress has stalled entirely.
Abraham said a tender has been floated for a new contractor, and expressed optimism that the project would soon get back off the ground.
Another large-scale irrigation project facing prolonged delays partly due to security issues is the Arjo Didessa Dam in the Oromia Regional State. The project was launched 15 years ago with a 755 million Birr cost estimate, to be finalized within 18 months. Thirteen years on, the project has consumed nearly seven billion Birr.
Abraham told MPs the contractor had been unable to conduct work due to security concerns, but stated that conditions have improved and the dam and spillway have been finalized.
“The saddle dam will be finished soon,” said the Minister.
Work has partially resumed on the Angar irrigation project in Wellega, where the Minister says contractors were repeatedly attacked by forces linked to OLF-Shene and Fano. Other schemes, like Haji and Mechacha, have also suffered from security-related problems, according to Abraham.
Outside of security, however, irrigation schemes are beset by issues related to right of way compensation and poor design. The Minister criticized irrigation projects launched under the EPRDF regime of lacking feasibility studies and proper design.
Among them is the Kesem irrigation scheme, which had been delayed by concerns about flooding downstream communities. While that issue has been cleared up, the Minister says the design requires a rework.
“We’re working on electromechanical redesigns for Kesem. We are replacing ill-suited materials previously used for the project,” he told lawmakers.
Design flaws are present in irrigation projects in Ramis, Logia, Mechala, and Shinfa, according to Abraham.
In Weibo, complications arising from an irrigation scheme’s proximity to the Gilgil Gibe III hydropower project have also forced a redesign, according to Abraham. The Weibo project was previously under the SNNPR regional administration, which has since split into three new regional states.
The reorganization is also contributing to delays, according to the Minister.
Like many other irrigation schemes in the country, Weibo faces substantial right of way compensation claims, which the Minister warns is costing the country.
Two years ago, the government introduced legislation that made regional administrations liable for compensation claims for federal projects in their respective jurisdictions. However, the Minister notes the proclamation has done little to stem demands for compensation from regional administrations.
“Unlike electricity, telecoms, or other commercial projects, irrigation projects are not commercial. They’re built for regional states’ productivity and water supply. So regions should pay. But the trend is that woreda and regional administrations are pressuring banks and taking money out of accounts belonging to our Ministry. This is a huge problem,” said Abraham.
He told MPs that even funds received by the Ministry from development partners are subject to seizure by regional and local authorities.
“This is wrong. The practice of taking government funding by force and using it for other purposes must stop,” said Abraham.
He told lawmakers the issue has been tabled to the ministries of Justice and Finance. The Minister also said that fuel supply disruptions have impacted several projects.
MPs appreciated the Ministry’s efforts to rework and finalize irrigation schemes that have been held up for decades, but they were left unsatisfied with the lack of progress compared to the country’s immense potential.
Lawmakers also stated that although security concerns have been an outstanding issue at many irrigation project sites, many located in peaceful areas remain subject to delays, overspending, and inefficiency.
The 2025 PSI study underlines the importance of finalizing irrigation schemes.
The author cautioned that factors such as rainfall variability, heat waves, land degradation, and low soil fertility linked to climate change pose serious threats to Ethiopian agricultural productivity.
Tadesse (PhD) stressed that, given Ethiopia’s population of 130 million, thoughtful policy actions are needed to boost sustainable agricultural production and productivity. The paper emphasized enhanced public and private investment in irrigation development as a core strategy to reduce the economy’s dependence on rainfall and support sustainable growth and development.