Roadmap to sustainable financing of long-term water resilience in Rwanda

Advancing the implementation of domestic and private-led financing for sustainable water resources use, resilience, and community-led ecosystem services provisions in Rwanda

Effective management of water resources is essential for Rwanda’s long-term sustainability, particularly in light of increasing environmental pressures and climate change impacts. SEI, with support from Vanguard Economics, led this study, which included an analysis of the ability and willingness to pay for water across nine major water user sectors.

We employed a robust dual methodology to generate credible evidence. This involved 31 in-depth key informant interviews and an online survey of 345 water permit holders (yielding 91 valid responses), as well as the development of sector-specific microeconomic models for each water user category to estimate profitability thresholds under various fee scenarios.

The study culminated in the development of a 2050 Roadmap to Water Resilience for Rwanda and a concept paper shared with potential funders. Given the constraints of relying solely on public funding, the strategy prioritizes the mobilization of diverse financial resources – including water use fees, water trust fund revenues and climate finance – to scale up interventions that protect watersheds, enhance water infrastructure and foster inclusive participation. The roadmap seeks to drive systemic transformation, ensuring that water services remain sustainable, resilient and equitably managed across Rwanda’s communities. It presents actionable pathways for stakeholder engagement at all levels, the establishment of enabling policies, and the promotion of ecosystem stewardship as a cornerstone of long-term water security and climate adaptation.