Water, food and energy are the basis for human livelihoods and economic activities; they are also closely interrelated: agriculture, forestry and the energy sector simultaneously depend heavily on and affect water resources. Energy is essential for water management, but also for agricultural production, processing and marketing. Land is needed for the production of food, fodder and renewable energy as well as water resource protection. Demographic trends such as population growth, progressive urbanization and globalization, changing lifestyles and consumer habits are increasing pressure on already limited natural resources.

Globally 844 million people lack access to safe drinking water (WHO, 2017); 1.1 billion lack access to energy (50% of these are in Africa) (IEA, 2017); and about 815 million do not have secure access to food (FAO, 2017).

Based on population trends and on rapid urbanization and rising living standards, it is estimated that by 2050 global energy demand will increase by 80%, water demand will increase by 55%, and food demand by 60%. Furthermore, lack of sanitation access can cost countries up to 6% of GDP; unreliable water supply and farm-to-market access can deprive farmers of 2/3rd of their potential income; energy security is threatened by water challenges; and losses of biodiversity and ecosystem services with increasingly visible economic cost.

Although Ethiopia has made important development gains over the past two decades in terms of reducing poverty and expanding investments in basic social services, food insecurity and malnutrition are still major concerns across the country. An estimated 20.4 million people currently require food support. The food insecurity is mainly linked to water security both at the level of small scale as well as large scale agricultural systems.

In addition, proper storage, management and efficient use of limited water resources in the agriculture sector is not in place. Ethiopia has abundant renewable energy resources and has the potential to generate over 60,000 megawatts (MW) of electric power from hydroelectric, wind, solar and geothermal sources. As a result of Ethiopia’s rapid GDP growth over the previous decade, demand for electricity has been steadily increasing. Despite Ethiopia’s energy potential, the country is experiencing energy shortages and load shedding as it struggles to serve a population of over 120 million people and meet growing electricity demand that is forecast to grow by approximately 30% per year. Climate change will raise pressure on natural resources and make both people and ecosystems more vulnerable.

At the same time, changes in land use, agricultural and livestock practices, unsustainable forestry, acidification of waters and drainage of wetlands and many forms of energy production cause greenhouse gas emissions that contribute to climate change. Likewise, biodiversity is threatened by land use changes and/or the intensification of conventional agriculture. In contrast, intact natural ecosystems assure water security, prevent natural hazards, such as floods and landslides (or protect people from their impacts) and provide means of maintaining food security when harvests fail.

The Water-Food-Energy (WFE) Nexus concept is important to adders the issue by focusing on water use for competing purposes, aiming simultaneously at an improvement of resource use efficiency, reliable energy production, and food security. However, issues such as the coherence of major policies, plans and strategies related to water, food and energy sectors has become a major challenge in developing countries like Ethiopia in particular and most African countries in general. This lack of coordination, dialogue and collaboration among sectors can significantly affect the efficiency and effectiveness of policies and may also prevent appropriate measures from being taken. This requires stronger demand for coordinated policy and technical interventions. Stronger integrated planning will be necessary to evaluate trade-offs, find synergies, and ensure sustainable development. The Africa Centre of Excellence for Water Management is working to build strong capacity and to play a catalytic role in strengthening partnership among key players.