Water Resources and Uganda’s Economy

For Uganda’s Ministry of Water and Environment, IEc analyzed the contribution of water resources development and environmental management to Uganda’s economy.  The study first applied models to generate biophysical outputs related to water management (e.g., hydropower generation, crop yields, water deliveries). IEc then used these outputs in a Computable General Equilibrium (CGE) model of the national economy to estimate the gross domestic product (GDP) and welfare implications of a range of water management and investment strategies.  This study is one of the first to show the macroeconomic effects of enhanced investment in water resources management, and showed that in Uganda’s case, increased spending on water and environmental management could increase per capita GDP by up to nine percent by 2040.  IEc also coordinated a one-year training program to build the technical capacity of local counterparts to use the tools and analytical outputs developed in the study.