A Sustainable Asset Valuation Assessment of Nature-Based Solutions in the Dechatu River Catchment in Dire Dawa, Ethiopia
Dire Dawa, Ethiopia, faces growing pressures from flash floods, soil erosion, and water scarcity. The SUNCASA initiative is restoring the Dechatu River catchment through afforestation, agroforestry, riparian restoration, and urban tree planting. This Sustainable Asset Valuation (SAVi) assessment evaluates the environmental, social, and economic performance of these nature-based solutions (NbS) and shows how they reduce flood risks, improve health, create livelihoods, and build resilience.
Key Findings
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Restoring land in the Dechatu River catchment can significantly reduce flood damage, improve water quality, and lower heat-related health impacts. The greatest benefits come from avoided flood damage to infrastructure (USD 1.35 million) and savings in climate-related health expenses (USD 930,000).
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NbS in Dire Dawa deliver strong economic and environmental value. Over 25 years, every USD 1 invested in NbS generates USD 1.36 in benefits. The interventions will also store up to 175,000 tonnes of carbon dioxide, demonstrating their contribution to climate mitigation and local adaptation.
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Restoration creates jobs and strengthens resilience. Afforestation, agroforestry, and urban greening not only protect ecosystems but also create nearly 7,000 jobs and improve livelihoods. These activities enhance the city's ability to adapt to floods, droughts, and heat.
Dire Dawa lies in one of Ethiopia's most flood-prone catchments. Seasonal flash floods from the Dechatu River cause recurring damage to homes, infrastructure, and livelihoods, while deforestation, land degradation, and rapid urban growth have reduced the land's ability to absorb water. At the same time, groundwater depletion and pollution are intensifying water scarcity and health risks.
To address these challenges, the SUNCASA (Scaling Urban Nature-based Solutions for Climate Adaptation in Sub-Saharan Africa) initiative, implemented by the International Institute for Sustainable Development, the World Resources Institute, and local partners with support from Global Affairs Canada, promotes gender-responsive NbS interventions in Dire Dawa. These include afforestation and agroforestry to restore degraded land, riparian buffer restoration to reduce runoff and erosion, and urban tree planting to mitigate flooding and heat.
The Nature-Based Infrastructure Global Resource Centre conducted a SAVi assessment to evaluate the economic, environmental, and social performance of these interventions compared to a business-as-usual scenario.
The results show that investing in nature provides strong and measurable returns. Every USD 1 invested in NbS generates USD 1.36 in benefits. The greatest impacts come from avoided flood damage to infrastructure, reduced health costs from water pollution and heat, and increased carbon sequestration—storing up to 175,000 tonnes of carbon dioxide and creating nearly 7,000 jobs by 2050.
These findings show that NbS can restore degraded ecosystems, protect communities from climate impacts, and support sustainable livelihoods. Integrating these measures into local planning and investment strategies will help Dire Dawa strengthen climate resilience and promote inclusive development.
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