This economic analysis report is structured around two arguments. Firstly, natural resources and ecosystem services in particular have significant contribution to economic growth and poverty reduction. Secondly, failure to manage natural resources, conserve and protect the ecosystem will result in costs of degradation that will compromise medium and long term sustainable development. An ecosystem services approach has been used which is capable of capturing aspects of the environment and natural resources that are usually neglected either because they do not have market values or they cannot readily be quantified. The approach is supported by Case Studies of Rugezi Wetlands and Gishwati Forest.