Egypt and Sudan oppose what they see as the Ethiopian government's unilateral construction and filling of the dam with Nile water. But the dam's location makes it cheaper to export power to South Sudan than it is to transport it over the Ethiopian highlands to Addis Ababa. In this context, South Sudan's diplomatic commitments around energy and water are much sought after.
This gives Juba leverage. The country has been exploiting regional rivalries and fluctuations in global commodity prices. We've argued in athat the government's energy diplomacy has allowed the ruling party to tighten its grip on power. It has also bolstered South Sudan's ability to shape regional developments.
For instance, since independence President Salva Kiir has endorsed the Ethiopian dam and signalled his desire to import electricity from Ethiopia. His cabinet has repeatedly indicated its intention to ratify the, which Ethiopian officials see as key to the equitable and stable management of the Nile Basin.
But South Sudan has, at the same time, deepened relations with Ethiopia's great rival, Egypt. Juba has solidified security ties with Cairo and solicited its assistance for infrastructure projects on the Nile and its tributaries. Such balancing is crucial to Kiir's ability to extract support from Ethiopia, Egypt and other regional players. But his unwillingness to make hard, durable commitments leaves these powerful neighbours of South Sudan often deeply frustrated.