While Ethiopia is one of the countries with the highest hydro-power potential in Africa with 45,000 MW, only about 5% has been exploited. To satisfy energy and water demands and enhance the national economy, the Government of Ethiopia is developing the Gibe Hydroelectric Cascade scheme (4,600 MW) and the Kuraz Sugar Development Project of about 175,000 hectares in the Omo-Gibe basin.These developments will alter the natural flow and sediment regime, thus leading to changes in the temporal and spatial water availability in the Lower Omo Valley and Lake Turkana, the inflow of which largely depends on the Omo River. The DAFNE project will identify sustainable solutions analysing the trade-offs among the key water uses for hydropower, irrigation and the environment.