The best coordination to Egypt and Ethiopia on the Blue Nile from supply chain performance perspective: an application to Kraljic-Tesfay portfolio model

Abstract

Forthwith the construction of the Grand Ethiopian Renaissance Dam (GERD) by the Ethiopian government triggered a transboundary water conflict between Egypt and Ethiopia than ever. This paper aimed to offer the best coordination of these to sister countries on the Nile River water. In this analysis, we have well-thought-out geopolitical, demographic, and economic variables envisage the best coordination by applying the Kraljic-Tesfay portfolio model. The model predicted that the Blue Nile water resource is a strategic resource to Ethiopia, and it is a hyper-strategic resource to Egypt. As the hyper-strategic resource, the primary undertaking of Egypt is to reformulate and improve its water utilization efficiency and competence in advance, pursuing any coordination on the Nile water resource. More importantly, the result implied that unlike both 1929 and 1959 protocols, Egypt has to be familiar with and agree to take Ethiopia’s interest in the Blue Nile River water. Correspondingly, Ethiopia should accept mutual benefit and implement and follow the hyper-hybrid coordination with Egypt. The coordination also strongly recommends that both countries need to achieve continuous improvement programs and shared learning.