Investing in water security for growth and development

The Strategic Framework for Water Security and Climate Resilient Development, developed by AMCOW and GWP, outlines a four-phase approach to identify and implement 'no/low regrets' investments in Africa. It emphasizes the critical link between water security and macroeconomic stability, noting that hydrological variability can significantly reduce GDP growth in several African nations. The framework advocates for a shift from isolated adaptation projects toward mainstreaming climate resilience within national budgeting and planning systems, such as Medium-Term Expenditure Frameworks. It highlights the importance of Integrated Water Resources Management (IWRM) and the use of Robust Decision Making (RDM) to ensure investments perform well across multiple climate scenarios. The document also addresses the need for diverse financing strategies, leveraging both traditional development funds and specialized climate finance like the Green Climate Fund, while promoting a transition toward a Green Economy and the inclusion of gender equality in water management.

• Water insecurity and hydrological variability pose significant risks to Africa's macroeconomic growth; for example, projections for Ethiopia show average annual GDP growth rates could drop by as much as 38% due to this variability.
• Extreme weather events have caused severe economic shocks in Africa, such as in Kenya where floods in 199798 led to an 11% drop in GDP, followed by a 16% drop during the 19992000 drought.
• The framework prioritizes 'no/low regrets' investments, which are defined as measures that deliver benefits under any future climate scenario and provide immediate development gains while building long-term resilience.
• Adaptation costs for Africa are estimated to be substantial, with the World Bank projecting an annual infrastructure investment of US$18 billion between 2010 and 2050, and the African Development Bank estimating costs between US$20 and 30 billion per year for the next 10 to 20 years.
• The framework proposes a four-phase cycle for implementation: 1) Understand the problem, 2) Identify and appraise options, 3) Deliver solutions, and 4) Monitor and move forward.
• Robust Decision Making (RDM) is recommended to evaluate investment options, ensuring they provide adequate performance across a range of plausible climate scenarios rather than optimizing for a single projection.
• Financing for water security in Africa is shifting from commercial bank loans and private equity toward host government budgets, International Financial Institutions (IFIs), and funding from emerging economies, particularly China.
• The framework emphasizes the 'water, energy and food security nexus,' noting that Africa has developed only 10% of its hydropower potential, which could drive development and climate adaptation.
• Gender equality is identified as a cornerstone for improved water security, as women are often the most affected by climate impacts but are also the most capable of driving adaptation within their communities.

APA

Climate and Development Knowledge Network (n.d.). Investing in water security for growth and development. https://cdkn.org/sites/default/files/files/Strategic-Framework-for-Water-Security-and-Climate-Resiliant-Development_FINAL_low-res.pdf

Chicago

Climate and Development Knowledge Network. Investing in water security for growth and development. n.d. https://cdkn.org/sites/default/files/files/Strategic-Framework-for-Water-Security-and-Climate-Resiliant-Development_FINAL_low-res.pdf.

Wikipedia

{{cite report |author=Climate and Development Knowledge Network |title=Investing in water security for growth and development |url=https://cdkn.org/sites/default/files/files/Strategic-Framework-for-Water-Security-and-Climate-Resiliant-Development_FINAL_low-res.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climateanddevelopmentknowledgenetworkndinvesting, author = {{Climate and Development Knowledge Network}}, title = {{Investing in water security for growth and development}}, institution = {Climate and Development Knowledge Network}, url = {https://cdkn.org/sites/default/files/files/Strategic-Framework-for-Water-Security-and-Climate-Resiliant-Development_FINAL_low-res.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }