A water-resilient economy

The analysis finds that Rwanda's economy is highly vulnerable to water supply fluctuations and a heavy reliance on run-of-river hydropower. While the 'Vision 2050' growth trajectory would increase water demand by 1140%, the 'Water Resilient Vision 2050' (WRes2050) scenario suggests that combining a reduction in hydropower dependence (from 40% to 20%) with diversified supply- and demand-side interventions can maintain GDP growth while reducing water-related losses. Key recommendations include tripling water storage from 100 to 300 MCM, improving irrigation efficiency, and establishing Payments for Ecosystem Services (PES).

• Rwanda's economy is vulnerable to climate change and water supply fluctuations even under baseline conditions, with a specific risk stemming from its dependence on run-of-river hydropower.
• The water demand required to fully realize the 'Vision 2050' growth trajectory is projected to increase by 1140% from 2020 to 2050, compared to an 83% increase under baseline scenarios. The 'Water Resilient Vision 2050' (WRes2050) scenario, which incorporates efficiency and reduced hydropower dependence, still results in a 740% growth in demand but significantly reduces overall requirements.
• While increasing water storage is critical and can avoid GDP losses of up to 5%, storage alone is insufficient to prevent near-annual water shortfalls between June and October.
• Economic stability and GDP growth consistent with Vision 2050 can be maintained by reducing hydropower dependence from 40% to 20% and implementing a balance of supply- and demand-side interventions.

APA

Busolo, J., Nzeyimana, I., Jones, O., Huber-Lee, A., Kemp-Benedict, E., Joyce, B., Musana, B., & Micomyiza, H. (2023). A water-resilient economy. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2023/04/water-resilient-economy-rwanda.pdf

Chicago

Busolo, Joy, Innocent Nzeyimana, Oliver Jones, Annette Huber-Lee, Eric Kemp-Benedict, Brian Joyce, Bernard Musana, and Hanson Micomyiza. A water-resilient economy. Stockholm Environment Institute, 2023. https://www.sei.org/wp-content/uploads/2023/04/water-resilient-economy-rwanda.pdf.

Wikipedia

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BibTeX

@techreport{busolo2023waterresilient, author = {Busolo, Joy and Nzeyimana, Innocent and Jones, Oliver and Huber-Lee, Annette and Kemp-Benedict, Eric and Joyce, Brian and Musana, Bernard and Micomyiza, Hanson}, title = {{A water-resilient economy}}, institution = {Stockholm Environment Institute}, year = {2023}, month = mar, url = {https://www.sei.org/wp-content/uploads/2023/04/water-resilient-economy-rwanda.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }