This report discusses the costs and benefits of investments in water resources management to sustain Ethiopia’s economic growth, while ensuring that no-one is left behind.

Our research shows that investments in infrastructure development to harness the potential of water resources and mitigate against climate risks need to go hand in hand with investments in institutions, the rules of the game, that set out the terms and conditions under which different groups can access and use water.

Water scarcity resulting from over-exploitation and pollution risks otherwise reducing the profitability of investments and leading to competition between sectors and users, as it is the case in the Awash River Basin. Only with better, sustainable and inclusive water resources management can Ethiopia can continue to harness its water for the new development era.