The Second IASTED Africa Conference on
Water Resource Management
~AfricaWRM 2008~

SCIENCE AND TECHNOLOGY INNOVATION FOR SUSTAINABLE DEVELOPMENT

September 8 – 10, 2008
Gaborone, Botswana

SPECIAL SESSION

Experiences with Environmental Accounts for Water in Southern Africa

Organiser: Glenn-Marie Lange
President of Session: Rashid Hassan

Session Outline

Water scarcity is an issue of increasing importance worldwide, posing challenges for national development as well as regional cooperation in sharing a limited international resource. The United Nations and other international organizations have developed a tool for assisting in water management: the System of Environmental and Economic Accounting for Water (SEEAW). Water Accounts provide an economic perspective on current and alternative, future allocations of water, both within a country and among countries. Water accounts can be especially useful for negotiating national allocations of a shared, international water source, such as international rivers. This session presents the SEEAW framework for water accounts and evaluates the contribution of water accounts to policy-making, specifically, how they have influenced policy decisions in Southern Africa. A regional environmental accounting programme for East and Southern Africa, initiated in 1995 and hosted by the Centre for Environmental Economic Policy in Africa, University of Pretoria, has led the development of water accounts in a number of countries. This session discusses the results for three core countries in this programme: Botswana, Namibia, and South Africa, and the implications for other countries such as Mozambique, Tanzania and Kenya.

PAPER 1
TITLE:
A Framework for Water Resource Accounts
AUTHORS: Eric Mungatana & Rashid Hassan (Centre for Environmental Economics and Policy in Africa, University of Pretoria)
KEYWORDS: water management, water accounts, environmental accounts

PAPER 2
TITLE:
Water Accounting in Namibia: A Tool for Improving Water Management
AUTHORS: Glenn-Marie Lange (The Earth Institute at Columbia University), Christopher Munikasu and Shadrick Luyanga (Department of Water Affairs, Windhoek, Namibia)
KEYWORDS: water scarcity, water policy, environmental accounts, economic allocation of water, shared international water resources, resource management and conservation

PAPER 3
TITLE:
The Economic Value of the Okavango Wetland and RAMSAR Site
AUTHOR: Jaap Arntzen (Centre for Applied Research, Botswana), B. Nherera (IUCN-ROSA), J. Turpie (University of Cape Town) and J. Barnes (affiliation)
KEYWORDS: RAMSAR, international shared water resources, competing demands for water, integrated resource management, total economic valuation

PAPER 4
TITLE:
Water Accounting from a Southern African User's Perspective
AUTHOR: Jaap Arntzen (Centre for Applied Research, Botswana) and colleagues
KEYWORDS: environmental accounting, demand for environmental
accounts by users

PAPER 5
TITLE:
Water Supply and Sustainable Use in South Africa
AUTHOR: Robert Parry Brenda (Statistics South Africa)
KEYWORDS: Environmental Economic Accounting, water supply and use, climate change

Abstracts

A Framework for Water Resource Accounts

Integrated information systems are important tools for a multi-sectoral approach to water resource management. This paper presents the framework for water resource accounts promulgated in the specialized handbook "System of Integrated Environmental and Economic Accounts for Water (SEEAW)", the handbook on water resources accounting developed by the United Nations and other international organizations. The framework provides the basis for water accounts constructed in a number of countries. This framework integrates hydrological and economic data in a common system using concepts, definitions, and classifications consistent with the conventional economic accounts while refraining from violating the fundamental concepts in hydrology.

Water resource accounts comprise stock and flow accounts in physical and monetary terms, quality accounts, and expenditure accounts for resource protection and management. This integrated information system provides the basic data for (a) understanding the interaction between human activity and the environment, (b) studying the impact of different sectors of the economy on the environment; (c) rationalizing the allocation of water resources nationally as well as internationally; and (d) analyzing the resource requirements by the economy as a result of structural changes. Water accounts thus facilitate the formulation and evaluation of policies and strategies of sustainable development.

Water Accounting in Namibia: A Tool for Improving Water Management

Namibia is one of the world's most sparsely populated countries as well as one of the driest, and water is often cited as a major constraint to development. Consequently, effective water policy is an essential component of Namibia's development strategy. Until independence in 1990, water policy was designed to serve commercial farming, mining, and the major urban centres; relatively few resources were directed toward the majority of Namibia's rural population. Water policy emphasised supply-side measures to cope with water scarcity and in most instances water prices did not reflect the costs of water, or its value in alternative uses. This gave an incorrect signal to consumers concerning water scarcity, and encouraged the inefficient use of water. Furthermore, appropriate tools for management of this scarce resource were not available.

Water Accounts are a tool that provides an economic perspective on current and alternative allocations of water. This paper presents the water accounts for Namibia and evaluates the economic allocation of water to industry, households, and government from 1993 to 2001. This period ushered major political changes into Namibia and fundamental change in water policy, a move away from a supply approach to water scarcity, and a commitment to full-cost recovery for water use above basic human needs. This new policy has resulted in a significant change in water use. The monetary accounts are used to compare user fees, costs of delivery, and the economic productivity of water in different sectors of the economy as a first step toward estimating the opportunity cost of water. The paper also discusses Namibia's increasing reliance on water from international rivers and implications for the future.

The Economic Value of the Okavango Wetland and RAMSAR Site

The Okavango delta is a unique wetland of global significance. In recognition of this, the Okavango delta in Botswana has become a RAMSAR site (the largest in the world) and the Botswana government has prepared the Okavango Management Development Plan to guide the conservation and utilisation of the Delta's resources. Furthermore, the use of Okavango River water is governed by the SADC Shared Water Courses Convention. Climate change and upstream water abstraction could easily affect the balance between water and land resources, leading to changes in wildlife resources.

Economic valuation was undertaken to better understand the value of the entire wetland and to demonstrate the necessity of integrated resource management, covering water, land, and other key resources.

Adopting the concept of the total economic value, the paper discusses the valuation methods used and the main results in terms of direct use value, indirect use value option and existence value. The direct use value is further broken down between subsistence and commercial resource uses. The former includes livestock, crops, fishing and gathering of veld products, while commercial use is mostly trophy hunting and photo safaris. The findings show that the Okavango represents a significant direct use value, the bulk of which is generated by commercial tourism, and a significant indirect use value, which shows the importance of prudent resource management to maintain the ecosystem's integrity.

The paper concludes with a discussion of the role and value of water within a broader ecosystem and development context and the role of resource valuation in water and land management.

The paper is based on a 2006 study carried out by IUCN-ROSA for the Government of Botswana.

Water Accounting from a Southern African User's Perspective

The paper reviews water accounting from a user perspective in government or a multilateral organisation such as SADC. The paper explores which institutions are involved in water planning and management and how water accounts can assist their work. Are water accounts used in water management and planning? If so: what are the strengths and weaknesses of the current accounts and what opportunities and threats exist for water accounting in the region? Can water accounts benefit shared water resource management, for example, by detailing the trends in water utilisation? The paper concludes with a discussion of the planned regional water accounting.

Water Supply and Sustainable Water Use in South Africa

South Africa still faces a rapid population growth, demands of a vibrant economy, climate change, and inefficiencies in water use, which lead to the challenges of escalating water demands and insufficiencies of water availability in other areas around the country (Basson et al., 1997; Ashton et al., 2002). In order to address the above problems and ensure sufficient water supplies in future, it is significant to measure water supply and use. Moreover, developing another water source will no longer be necessary, but measuring and managing water properly will reduce the difficulties of water supply in future.

South Africa is a semi-arid country with an annual average rainfall of 497mm, far less than the world average of 860mm, while evaporation is comparatively high. The countries water resources are, in global terms, scarce and extremely limited. South Africa has been rated as one of the twenty most water deficient countries in the world (DWAF 2004).

The purpose of the paper is to give a background of different industrial sectors' water supplies and use in South Africa for the year 2000, following two approaches: environmental-economic accounting and GIS ArcMap (for spatial dimensions), taking into account Limpopo Province in the year 2000.