Rwanda’s economic analysis of wetland site leads to internationally recognized wetland restoration

The Government of Rwanda received the internationally renowned Green Globe Award in October 2010 in recognition of its efforts to restore the Rugezi wetland. The UNDP-UNEP Poverty-Environment Initiative had been instrumental in providing the necessary economic analysis and data on which the restoration efforts were based.

Rugezi wetland

Rwanda’s economic analysis of wetland site leads to internationally recognized wetland restoration

Background
The Government of Rwanda established a partnership with the UNDP-UNEP Poverty Environment Initiative in 2005 to achieve a better integration of environment-poverty concerns into national planning processes and economic development strategies. The main purpose of the first phase of the PEI–Rwanda country programme was to generate information and data and develop appropriate tools to inform and improve policy developments in relation to Rwanda's pivotal planning tool, its Economic Development and Poverty Reduction Strategy Paper (EDPRS). One of the studies undertaken to support this objective was an economic analysis of environmental degradation ("Economic Analysis of Natural Resources Management in Rwanda") which focused on two case studies, the Rugezi wetland and the Gishwati forest.
 

A study and its findings

This study generated significant findings which in turn where used by policy-makers to improve environmental decision-making. One of the significant findings of the study was a 167% rise in the per capita cost of electricity resulting from the degradation of both the Gishwati forest and Rugezi wetland for the 2% of Rwandans having access to electricity. The economic analysis showed that one of the key reasons for the high electricity prices were the reduced water levels in the lakes and the hydropower reservoirs downstream from the Rugezi wetland. The degradation of the Rugezi wetland had significantly reduced the water flows, and thus electricity production was severely affected. The economic analysis pointed to the fact that Rwanda was spending $65 000 every day to cover the cost of diesel generators to cover electricity demand. The economic analysis also showed the detrimental cost of the wetland degradation on local communities’ livelihoods.

Consequences and improvements
This powerful evidence attracted attention from the highest political level and resulted in a political commitment to restore the Rugezi wetland. A large scale program was put in place to resettle farmers and introduce more sustainable farming techniques and other income generating activities. Support from other donors was also introduced, among others support for eco-tourism in the wetlands. Today, less than 4 years since the economic study was released, the wetland has been restored and water levels are back to original levels. Projections are that the water flow will further increase and new hydropower stations are under construction. This successful restoration has gained international recognition and the Rwanda Environment Management authority, on behalf of the Government of Rwanda, received the Green Globe Award in October 2010 (issued by the World Wetland Network) in recognition of efforts to restore the Rugezi wetland. This case has also informed other national policies, such as energy policies and agricultural policies to integrate more environmental practices, amongst others, sustainable watershed management.