Africa Water, Sanitation & Hygiene November - December 2016 vol.11 No.6 | Page 40
Publications
Drought and Sub-Saharan African Economies
Droughts are frequent and
severe in many countries of
Sub-Saharan Africa (SSA) and
have a devastating impact on
their peoples and economies.
The extreme vulnerability to
rainfall in the arid and semiarid
areas of the continent and
the poor capacity of most
African soils to retain moisture
result in almost 60 percent
of SSA being vulnerable to
drought and 30 percent being
extremely vulnerable. Since the 1960s, rainfall in parts of
the Sahel and Southern Africa has also been significantly
below the norms of the previous 30 years. Moreover, the
prospects of an El Nino effect has led to more focus on
the impact of drought in SSA. Against the background of
a dearth of investigative studies on drought’s economic
impact, a recent report, the impact of drought on SubSaharan African economies: a preliminary examination
examines this phenomenon more closely. Drought has
typically been perceived as a problem principally of
agriculture and, in particular, food supply. As such, it is
seen as posing problems for effective relief but there
is less evidence on whether or not it justifies economic
responses or modifications in policy. This report presents
the findings of an exploratory study which was intended as
a contribution to filling that gap. Analysis of a number of
issues pulls together lessons learned from six country cases
(Burkina Faso, Ethiopia, Kenya, Senegal, Zambia, and
Zimbabwe) to develop strategies to reduce the economywide impacts of drought.
Citation
“Benson, Charlotte; Clay, Edward. 1998. Drought and SubSaharan African Economies. Africa Region Findings &
Good Practice Infobriefs; No. 118. World Bank, Washington,
DC. © World Bank. https://openknowledge.worldbank.org/
handle/10986/9884 License: CC BY 3.0 Unported.”
URI
http://hdl.handle.net/10986/9884
Economic valuation of wastewater the cost of
action and the cost of no action
Foreword
Over the years, wastewater has been a source of pollution
due to urbanization, growing cities, industrialization and
improved material consumption, among other factors.
Today, an estimated 80 per cent of global wastewater is
being discharged untreated into the world’s waterways.
This affects the biological diversity of aquatic ecosystems
and disrupts the fundamental web of our life support
systems, on which a wide range of sectors from urban
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Africa Water, Sanitation & Hygiene • November - December 2016
development to food
production and industry
depend. With only 8 per cent
of the required capacity to
treat wastewater effectively,
low-income countries are the
hardest hit by contaminated
water supplies and resulting
impacts: loss of ecosystem
services and economic
opportunities; climate
change aggravation through
wastewater-related emissions
of methane (CH4 ) and nitrous oxide (NO2 ); spreading
of “Dead Zones” impacting fisheries, livelihoods and the
food chain; and health impacts due to waterborne diseases.
Yet, if properly managed, wastewater could be a source
of water, energy, fertilizer and other valuable materials
and services. Each year, for instance, approximately 330
km3 of municipal wastewater are generated globally. A
recent study showed that resources embedded in this
wastewater would be enough to irrigate and fertilize
millions of hectares of crops and produce biogas
that could supply energy for millions of households.
Adequate wastewater collection, treatment, and safe use
or disposal can lead to significant environmental and
health benefits. From a business perspective, valuation
of the costs of no action in wastewater management is
necessary to justify suitable investment in this domain.
Economic analysis provides the information needed for
public policy decisions that support improvements in
wastewater management. Countries have finalized the
next development agenda and endorsed a new set of
Sustainable Development Goals (SDGs), which include
a goal to ensure sustainable water and sanitation for al l.
With this in mind, Economic Valuation of Wastewater
therefore identifies economic benefits for municipalities
associated with wastewater treatment. This book further
highlights that including external benefits (environmental
and health) in economic feasibility analysis generates
positive results for all the evaluated water reuse projects.
As illustrated by the successful stories from around the
world in this report, investing in wastewater management
is economically feasible, and produces benefits of higher
value than non-action. Through the Global Wastewater
Initiative and other relevant activities, UNEP is committed
to working with all stakeholders to reduce the impacts of
untreated wastewater on the environment and to promote
it as a valuable resource worthy of investment. This will
require cross-sector global collaboration with governments
and other agencies to develop effective legislation,
innovative financial mechanisms and waste management
infrastructure, especially in developing countries. All
involved parties may need to digest the findings of this
book and consider the benefits of investing in wastewater
management from an economic, environmental and social
point of view.