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

AQUATIC

ECOSYSTEMSCLEAN

WATER

CLEAN AIR

CARBON FIXATION

LIVELIHOODS

NATURAL MEDICINE

FLOOD MITIGATION

FOOD SECURITY

RECREATION

HERITAGE

POLLINATION

ECONOMIC POTENTIAL OF WILDLIFE

PROTECTED

AREAS COMMUNAL

AREAS EXTENSIVE PRIVATE LAND / GAME

FARMS

MIN

ING

SETT

LEM

EN

TS

SELE

CTI

VE

BR

EED

ING

FO

RESTR

Y

EXTENSIVE WILDLIFE AREAS

Ecosystem Services – R73 bil or 3% GDP

LAN

D C

LAIM

S

HOW DO WE PERFORM IN GENERATING PROFITS ?

PROTECTED

AREAS COMMUNAL

AREAS

PRIVATE LAND / GAME FARMS

• Available

land ↑

• Funding ↑

• Capacity ↓

• Support ?

• Profitability ?

• Well-being?

RETURN ON INVESTMENT

PROTECTED

AREAS COMMUNAL

AREAS

PRIVATE LAND / GAME FARMS

RETURN ON INVESTMENT

• 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

?

THE BASELINE…

CONSTITUTION - SECTION 24 - Environment

Everyone has the right-

a) 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….

VALUE Generated

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)

IMPACT of Activity

ALL PEOPLE’S WELLBEING

King III Corporate

Governance

TRIPLE

BOTTOM LINE

OUTWEIGH

0%

10%

20%

30%

40%

50%

60%

70%

80%

Profitable Marginal Loss

Financial

OPTIONS AVAILABLE.....

Wildlife Enterprises 48% financially profitable

79% economically profitable (internalized costs)

Livestock Enterprises 5% were profitable

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.

0%

10%

20%

30%

40%

50%

60%

70%

80%

Profitable Marginal Loss

Financial

Economic

For Landholder (Financial)

Meat Meat

Hunting

Tourism

Ecological inputs

Eco

no

mic

ou

tpu

t

Meat Viability

Child, B. 2013 Presentation to the Scientific Authority

BIODIVERSITY ECONOMY

• Livestock: commodity production

• Wildlife: bio-experience economy

• More from less

• Economic efficiency

EXTENSIVE WILDLIFE SYSTEMS

RESPONSIBLE – NATIONAL

HERITAGE

BIODIVERSITY RISKS/IMPACTS

DIRECT

• Reduced use options

• Genetics

• Habitat loss /degradation

• Habitat fragmentation

• Predator persecution

• Animal Welfare

INDIRECT

• 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

Rational investors will minimize risk by holding portfolios.

TIME

Probability distribution

Color

Variants

Common

species

with

existing consumer

market

EBIT

High Risk

Low Risk

Hooggendijk, 2011

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

Private Land R2-8,000/ha Communal Land R232/ha

Greg Parent research on how market access reduces vulnerability and use of natural resources (in prep)

Annual output from land use activities in

Benda Mutali communal area

Activity Total Output Output per Hectare1 Output per

Household

Crops 97,185 4.19 171

Livestock 1,737,474 74.89 3,048

Natural

Resources

2,537,184 109.36 4,451

Labor 1,017,279 43.85 1,785

Total 5,389,122 232.29 9,455 1 Area based on mapping exercise with community to calculate spatial extent of production, estimated

to be 23,200 hectares.

De-institutionalised

Dual Economy

Rich institutions

Child, B. 2013 Presentation to the Scientific Authority

OUTCOMES • Sustainable rural development

• Local beneficiation for communities

• Responsible resource use

How do we get

there?

Costs + benefit

internalized

OWNERSHIP

Adapted from Child, B. 2013 Presentation to the Scientific Authority

Goal: Viable landuse options with

efficient + sustainable use of resources

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

BIODIVERSITY ECONOMY NODES

PARTNERSHIPS – FINANCIALLY VIABLE LANDUSE MODELS

CLEAN

WATER SPIRITUAL

AQUATIC

ECOSYSTEMSCLEAN

WATER

TOURISM

LIVELIHOODS

NATURAL MEDICINE

FLOOD MITIGATION

FOOD SECURITY

RECREATION

HERITAGE

POLLINATION

THANK YOU

Lizanne (E.J.) Nel Manager Conservation

South African Hunters and Game Conservation Association