Economic Assessment of the Impacts of Climate Change in Uganda

This briefing note presents a case study on the economic impacts of climate change within the water and energy sectors of the Mpanga river catchment in Uganda. It highlights a significant risk of conflict between these sectors over water use and estimates that the energy sector will bear the brunt of economic losses, while suggesting that several adaptation strategies are highly cost-effective.

• Climate change is projected to negatively impact both water supply and energy production in the Mpanga river catchment, with the energy sector facing the most substantial economic losses. Annual costs for the energy sector are estimated to range between US$25 million and US$98 million by 2030 to 2035.
• In the Rushango area of the catchment, annual average economic losses to the water supply sector are estimated between US$45,000 and US$79,000. These losses could potentially exceed US$188,000 if future GDP, population, and willingness to pay scenarios are higher, or if industrial demand grows more than expected.
• Adaptation measures are considered a high priority because they only need to offset between 2.8% and 32.8% of estimated losses to be economically justified. The most favorable options include promoting water resource regulation between users, conducting further research on power supply chain impacts, diversifying energy sources (such as solar, biomass, mini-hydro, geothermal, and wind), and promoting water catchment protection through practices like agroforestry.
• The Mpanga river catchment faces increased conflict between water and energy sectors due to competing needs for hydroelectricity generation and other water users. This tension is expected to be worsened by population growth, socioeconomic development, and climate change.

APA

Climate and Development Knowledge Network (n.d.). Economic Assessment of the Impacts of Climate Change in Uganda. https://cdkn.org/sites/default/files/files/Uganda_CC-Economics_MPANGA_Case-study_Briefing-Note.pdf

Chicago

Climate and Development Knowledge Network. Economic Assessment of the Impacts of Climate Change in Uganda. n.d. https://cdkn.org/sites/default/files/files/Uganda_CC-Economics_MPANGA_Case-study_Briefing-Note.pdf.

Wikipedia

{{cite report |author=Climate and Development Knowledge Network |title=Economic Assessment of the Impacts of Climate Change in Uganda |url=https://cdkn.org/sites/default/files/files/Uganda_CC-Economics_MPANGA_Case-study_Briefing-Note.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climateanddevelopmentknowledgenetworkndeconomic, author = {{Climate and Development Knowledge Network}}, title = {{Economic Assessment of the Impacts of Climate Change in Uganda}}, institution = {Climate and Development Knowledge Network}, url = {https://cdkn.org/sites/default/files/files/Uganda_CC-Economics_MPANGA_Case-study_Briefing-Note.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }