Ethiopia is called the water tower of Africa due to its combination of mountainous areas with a comparatively large share of water resources in Africa. Only a fraction of this potential has been harnessed so far, 1% at the beginning of the 21st century. In order to become the powerhouse of Africa, Ethiopia is actively exploiting its water resources by building dams, reservoirs, irrigation and diversion canals and hydropower stations. The benefits of the dams are not only limited to hydropower. Many dams are multi-purpose dams that are also designed to provide water for irrigation, drinking water and flood control. However, hydropower is expected to be the main benefit of the dams.