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A water-resilient economy: hydro-macroeconomic and climate change analysis in Rwanda

Rwanda’s economy is inextricably linked to its water supply. It aspires to become an upper-middle-income country by 2035, and a high-income country by 2050. But rising temperatures and more prolonged dry spells threaten crop production and strain water supply.

Researchers from SEI and World Bank Group used SEI’s flagship water modelling tool, WEAP, and macroeconomic analysis to determine how water efficiency and storage measures can sustainably support Rwanda’s economic growth.

Annette Huber-Lee, Eric Kemp-Benedict, Brian Joyce / Published on 21 March 2023
Citation

Busolo, J., Nzeyimana, I., Jones, O., Huber-Lee, A., Kemp-Benedict, E., & Joyce, B. (2023). A water-resilient economy: hydro-macroeconomic and climate change analysis in Rwanda. Stockholm Environment Institute. https://doi.org/10.51414/sei2023.021

A leaning tree frames a landscape view of Rwanda's Lake Ruhonda, flanked in the background by the Virunga Volcanoes.

Photo: guenterguni / Getty Images

Agriculture employs nearly 70% of Rwanda’s population and makes up half of the country’s export revenue. As a result, Rwanda’s sustained economic growth depends on the preservation and responsible use of its water supply, which is rendered unpredictable with rainfall fluctuations exacerbated by climate change.

World Bank Group and SEI experts used a combination of SEI’s flagship water modelling tool, WEAP, and macroeconomic analysis to determine whether Rwanda can meet its development goals in the face of uncertain water supply.

Using the information on how water constraints affect economic growth, the researchers issued recommendations on how to support the economic goals outlined in Rwanda’s Vision 2050 policy through sustainable water stewardship.

SEI authors

Profile picture of Annette Huber-Lee
Annette Huber-Lee

Senior Scientist

SEI US

Eric Kemp-Benedict
Eric Kemp-Benedict

SEI Affiliated Researcher

SEI US

Profile picture of Brian Joyce
Brian Joyce

Senior Scientist

SEI US

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