Panel on the Nexus of Energy and Water in Sub-Saharan Africa (SSA) with a Focus on Socio-economic Dynamics

Strategic Planning for Water and Energy Interventions to Boost Socioeconomic Development: A Spatial Analysis in Uganda

Speaker: Paola Casati Università degli studi Aldo Moro di Bari and Joint Research Centre, European Commission

Abstract: Sub-Saharan Africa faces significant development challenges, particularly in access to basic resources like clean water and electricity, both of which are critical to achieving the Sustainable Development Goals (SDGs). Uganda exemplifies these challenges, with over 50% and 80% of its population lacking access to electricity and clean water, respectively. This study aims to identify regions in Uganda suffering from poor social outcomes, such as food insecurity, poor health, low educational attainment, and limited women’s empowerment, and explores how these outcomes are spatially linked to inadequate access to clean water and electricity. High-resolution spatial data and methods, including Global and Local Moran’s I and Geographically Weighted Regression (GWR), are employed to detect clusters of deprivation and analyze the local relationships between infrastructure access and socio-economic conditions. Preliminary results reveal critical regions in the North-Eastern and South-Western areas of Uganda, where infrastructure deficiencies closely correspond to severe social outcomes, emphasizing the need for targeted interventions. The study offers a spatial framework to help policymakers address socio-economic disparities by focusing on regions with the most urgent needs, optimizing resource allocation to improve water, electricity access, and socio-economic development.

Green FDI and Technological Spillovers in Host economies

Speaker: Vito Amendolagine – Università degli Studi di Foggia

Abstract: This paper investigates the role of green Foreign Direct Investments (FDIs) in fostering technological spillovers within host economies, focusing on renewable energy (RE) technologies. Utilising an updated green FDI dataset, this study extends previous research by measuring the extent of technological spillovers through forward citations of foreign investors’ green patents by inventors operating in the host economies. Our findings reveal significant spillovers, highlighting how green FDIs contribute to the dissemination of innovative technologies across borders. We observe that the impact of green FDIs on local innovation is more pronounced in developing economies and in countries with stringent environmental policies. Furthermore, the study differentiates between the effects of greenfield investments and mergers and acquisitions, noting a stronger impact associated with the latter. It also reveals differences in the impact of green FDIs across RE technologies (solar and wind). Overall, this research contributes to the literature on green technological diffusion and provides insights into the mechanisms through which multinational enterprises (MNEs) influence environmental innovation in host countries, thereby supporting policy formulations aimed at enhancing global environmental goals.

Enclaved or linked? Examining local linkage development in the Tanzanian off-grid solar market

Speakers: Ulrich Hansen ( Technical University of Denmark ) e Gabriel Malima, (University of Dar es Salaam, Tanzania)

Abstract: Foreign direct investments in the off-grid solar sector have been growing in East Africa. By linking up as sub-suppliers with the foreign multinational companies (MNCs) undertaking these investments, local companies can benefit from knowledge spillover, which could contribute to improving their competitiveness and capabilities. This depends crucially on the extent to which linkages are forged between the foreign MNCs and the local companies. However, little research has been done so far analysing local linkage development in the off-grid solar sector in East Africa. To meet this knowledge gap, we examine the breadth and depth of linkages between the foreign MNCs and the local companies in the off-grid solar sector in Tanzania. The article draws on interviews undertaken with eleven MNCs and eleven local companies. We find that the breadth of the linkages was narrow, as the majority of the components and services were imported from abroad. Those which were procured from local suppliers were low-value components, suggesting that the depth of linkages is also limited and shallow. However, there were more backward linkages in the deployment chain than in the manufacturing chain, while more extensive linkages were observed in larger solar systems compared to smaller systems. In order to increase the depth of backward linkages, we recommend focusing on building up the capacity of local companies to offer auxiliary services in the deployment value chains. Furthermore, although small-sized solar systems are seen as crucial components in facilitating affordable energy access to many off-grid areas, they do not offer many opportunities to develop backward linkages between foreign MNCs and local companies.

Analysis of WEFE nexus around small reservoirs in Burkina Faso using remote sensing data

Speaker: ANGHILERI Daniela Joint Research Centre, European Commission

Abstract: Small reservoirs (SRs) are long-established water storing practices in drylands of Sub-Saharan Africa (SSA) which have positive impact on rural population by meeting domestic, livestock water demand, recharge of soil water storage thus supporting household income and food security. Quantitative information on their number, location, and water storage is very uncertain and practically inaccessible. We developed a set of analytical and modelling tools to analyse the multi-purpose potential of SRs in supporting local population needs, in terms of domestic, livestock, agriculture, and electricity needs adopting a WaterEnergy-Food-Environment (WEFE) nexus approach. We present some preliminary results on Burkina Faso where we characterise existing SRs, identify possible future SRs in promising areas, and assess their impact on local communities accounting for both traditional water uses (agricultural and domestic) and potential additional uses (hydropower). Our approach requires a relatively small number of freely available data based on remote sensing thus tackling the data scarcity challenge typical of remote areas, particularly in SSA.

Financing the Water, Energy and Food Nexus – A Comprehensive review of Financing Mechanisms for the WEF Nexus

Speaker: Daniele Guzzo – RES4Africa Foundation

Abstract: This report explores the financial landscape supporting Water, Energy, and Food (WEF) Nexus projects in the Niger Basin and the Middle East and North Africa (MENA) region. It identifies opportunities for funding high-impact, integrated WEF projects by mapping existing financing institutions and mechanisms. Through the review of 71 financing instruments active in the areas of renewable energy, water and sanitation, agribusiness, climate change adaptation, and ecosystem preservation, the analysis provides a comprehensive overview of the WEF Nexus financing ecosystem. The report emphasizes several critical challenges for WEF financing, such as the perceived small scale of Nexus projects, the need for multi-sectoral expert teams, the absence of WEF-specific funding mechanisms, and the limited data on Nexus project funding. To address these challenges and enhance WEF Nexus financing, the report recommends promoting coordination between local institutions and funders, creating WEF-specific funding pillars within existing financial mechanisms, and encouraging sectoral financing institutions to adopt Nexus approaches. Moreover, it calls for increased awareness of the Nexus’s potential to mitigate climate change and foster large-scale, impactful projects. The urgency of addressing the region’s vulnerabilities to climate change, combined with the Nexus’s ability to offer integrated solutions, underlines the need for more cohesive and scalable WEF-focused financing strategies.