WILDLIFE INDUSTRY AND COMMUNITIES
Land Reform and Biodiversity Stewardship Initiative Learning Exchange
9-12 February 2015
Lizanne (E.J.) Nel
Manager Conservation
South African Hunters and Game Conservation Association
CLEAN
WATER
SPIRITUAL
CLEAN AIR
CARBON FIXATION
FLOOD MITIGATION
LIVELIHOODS
AQUATIC
ECOSYSTEMSCLEAN
WATER
RECREATION
POLLINATION
HERITAGE
NATURAL MEDICINE
FOOD SECURITY
ECONOMIC POTENTIAL OF WILDLIFE
EXTENSIVE WILDLIFE AREAS
Ecosystem Services – R73 bil or 3% GDP
EXTENSIVE PRIVATE LAND / GAME
FARMS
COMMUNAL
AREAS
PROTECTED
AREAS
FORESTRY
MINING
SETTLEMENTS
LAND CLAIMS
SELECTIVE
BREEDING
HOW DO WE PERFORM IN GENERATING PROFITS ?
RETURN ON INVESTMENT
PRIVATE LAND / GAME FARMS
COMMUNAL
AREAS
• Available
land ↑
• Funding ↑
• Capacity ↓
• Support ?
• Profitability ?
• Well-being?
PROTECTED
AREAS
RETURN ON INVESTMENT
PRIVATE LAND / GAME FARMS
GF’s – 10 000
20 mil ha marginal land - wildlife
16.8% national estate
3x land of formal PA
GF 16 mil head of game - PA 6 mil
ROI GF 13,5% vs Livestock 5%
GF R220/ha vs Livestock R80/ha
2013: Local hunting R6.3 bil, Trophy
hunting R1.1 bil, Game sales R1 bil
• Hunting 70% wildlife industry
• Tourism 10.6% of GDP
•
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•
•
•
•
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COMMUNAL
AREAS
?
PROTECTED
AREAS
THE BASELINE…
CONSTITUTION - SECTION 24 - Environment
Everyone has the righta) to an environment that is not harmful to their health or well-being;
and
b) to have the environment protected, for the benefit of present and
future generations, through reasonable legislative and other
measures that(i) prevent pollution and ecological degradation;
(ii) promote conservation; and
(iii) secure ecologically sustainable development and use of natural
resources while promoting justifiable economic and social development.
FINANCIAL PROFITS &
SUSTAINABILITY….
IUCN
Sustainability
speaks directly to
societal &
financial values
i.t.o. the need to
protect the future
by providing for
the needs of the
present while not
compromising the
ability of future
generations to
meet their needs
Brundtland Report (1987)
VALUE Generated
ALL PEOPLE’S
WELLBEING
OUTWEIGH
King III
Corporate
Governance
TRIPLE
BOTTOM LINE
IMPACT of Activity
OPTIONS AVAILABLE.....
Wildlife Enterprises
Livestock Enterprises
48% financially profitable
5% were profitable
79% economically profitable (internalized costs)
80%
Financial
Economic
70%
80%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
Profitable
Marginal
Loss
Financial
0%
Profitable
Marginal
Loss
Child, B. 2013 Presentation to the Scientific Authority
Jansen, D. J., I. Bond, et al. (1992). Cattle, wildlife, both or neither? A survey of commercial ranches in the semi-arid regions of Zimbabwe. Harare, WWF Multispecies Animal
Production Project: 203 plus appendices.
For Landholder (Financial)
BIODIVERSITY ECONOMY
Economic output
• Livestock: commodity production
Tourism
Hunting
• Wildlife: bio-experience economy
• More from less
• Economic efficiency
Meat Viability
Meat
Meat
Ecological inputs
Child, B. 2013 Presentation to the Scientific Authority
EXTENSIVE WILDLIFE SYSTEMS
RESPONSIBLE – NATIONAL
HERITAGE
BIODIVERSITY RISKS/IMPACTS
INDIRECT
DIRECT
• Reduced use options
• Genetics
• Habitat loss /degradation
• Habitat fragmentation
• Predator persecution
• Animal Welfare
• Domestication
• Loss of parasite/disease resistance
• Disruption of evolutionary processes adaptability
• Diversion of scarce conservation resources
• Veterinary risk
• Domesticated / Animals outside natural
range - not conservation
• Escalation in price of land
• Disinvestment in extensive areas –
reduced contribution of private sector to
conservation targets
PRICE INSTABILITY – FINANCIAL RISK
Probability distribution
Color
Variants
EBIT
Common
species
with
existing
consumer
market
Hooggendijk, 2011
High Risk
Low Risk
TIME
Rational investors will minimize risk by holding portfolios.
EXTENSIVE WILDLIFE SYSTEM
NAMIBIA
• 1996: Conservancy legislation granted
wildlife and tourism rights to rural
communities
• 4 Conservancies in 1998, 24 in 2007
• Rare wildlife in rural communities
ZIMBABWE
• Campfire
BOTSWANA
• CBNRM – wildlife tourism hunting
SUCCESSFUL RURAL BIO-ECONOMY
PREFERRED PROVINCES TO HUNT…
NWU, 2013
AVERAGE SPENDING - HUNTING TRIP
NWU, 2013
RESPONSIBLE WILDLIFE USE MODELS
FINANCIAL RETURNS ON LAND NEAR KRUGER
Communal Land R232/ha
Private Land R2-8,000/ha
Annual output from land use activities in
Benda Mutali communal area
Activity
Crops
Livestock
Natural
Resources
Labor
Total
Total Output
Output per Hectare1
Output per
Household
97,185
4.19
171
1,737,474
74.89
3,048
2,537,184
109.36
4,451
1,017,279
43.85
1,785
5,389,122
232.29
9,455
Area based on mapping exercise with community to calculate spatial extent of production, estimated
to be 23,200 hectares.
1
Greg Parent research on how market access reduces
vulnerability and use of natural resources (in prep)
Rich institutions
De-institutionalised
Dual Economy
Child, B. 2013 Presentation to the Scientific Authority
Goal: Viable landuse options with
efficient + sustainable use of resources
OUTCOMES
• Sustainable rural development
• Local beneficiation for communities
• Responsible resource use
Strategy: legal entities + internalize
costs and benefits locally +
partnerships
Manage externalities:
Regulation and incentives
Emphasis:
Design + manage solutions locally
through collective action
Scaling down then scaling up
Development nodes – focus
interventions
Costs + benefit
internalized
OWNERSHIP
How do we get
there?
Adapted from Child, B. 2013 Presentation to the Scientific Authority
BIODIVERSITY ECONOMY NODES
PARTNERSHIPS – FINANCIALLY VIABLE LANDUSE MODELS
CLEAN
WATER
SPIRITUAL
TOURISM
FLOOD MITIGATION
LIVELIHOODS
AQUATIC
ECOSYSTEMSCLEAN
WATER
RECREATION
POLLINATION
HERITAGE
NATURAL MEDICINE
FOOD SECURITY
THANK YOU
Lizanne (E.J.) Nel
Manager Conservation
South African Hunters and Game Conservation Association