Delving into The Effects of Hydro-Politics: Investment and Financing on Foreign Policy Decisions Among the Nile Basin Countries

Abstract

This study examines the effects of hydro-politics, investment, and financing on foreign policy decisions among Nile Basin countries, focusing on the dynamics of transboundary water governance. Recognising that water scarcity significantly impacts diplomatic relations among nations reliant on shared water resources, the research is anchored in theories of hydro-politics and international relations. A mixed-methods approach is utilised, combining qualitative and quantitative data to analyse the interplay between these countries and assess how hydro-political strategies affect regional stability and cooperation. The findings reveal that water resource management is deeply politicised, carrying substantial implications for conflict prevention and diplomatic relations. The research highlights that investment and financing decisions are closely tied to national priorities and diplomatic objectives. As riparian states grapple with increasing population pressures and climate change, the competition for water resources has intensified, necessitating a nuanced understanding of the hydro-political landscape in the region. Notably, the completion of significant infrastructure projects, such as the Grand Ethiopian Renaissance Dam (GERD), has underscored the complex relationships among upstream and downstream countries, particularly between Ethiopia, Egypt, and Sudan. The study’s conclusions stress the importance of integrating hydro-political considerations into foreign policy frameworks, advocating for collaborative approaches that prioritise equitable water distribution and regional peace. It calls for the establishment of comprehensive legal frameworks for transboundary water management to address historical grievances and contemporary realities. Recommendations emphasise that policymakers and stakeholders should prioritise equitable distribution of water resources and foster regional cooperation to enhance sustainable management. The role of development financiers, such as the World Bank and African Development Bank, is deemed critical for funding water infrastructure projects that promote cooperation and sustainable development. Ultimately, this research aims to provide valuable insights for policymakers, scholars, and practitioners engaged in water resource management and international relations, enhancing the understanding of how hydro-politics influences foreign policy decisions in the Nile Basin context.