Development, Empowerment and Conservation in The

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Development, Empowerment and Conservation in The PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB4299 Development, Empowerment and Conservation in the Public Disclosure Authorized Project Name iSimangaliso Wetland Park and Surrounding Region Region AFRICA Sector Forestry (30%); Fresh Water (40%) and Biodiversity (30%) Project ID P086528 GEF Focal Area Biodiversity Borrower(s) SOUTH AFRICAN GOVERNMENT Implementing Agency iSimangaliso Wetlands Park Authority, KwaZulu-Natal Private Bag X05, Saint Lucia 3936 South Africa Tel: (27-35) 590-1633 Fax: (27-35) 590-1602 [email protected] Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Public Disclosure Authorized Date PID Prepared April 23, 2009 Date of Appraisal April 30, 2009 Authorization Date of Board Approval July 26, 2009 1. Country and Sector Background Government Strategy for Economic Growth and Poverty Reduction The fifteen years since the end of apartheid have witnessed South Africa’s transformation into a stable and robust economy. Prudent economic management and a supportive global environment have helped the country attain a 4% average annual economic growth rate over the past ten Public Disclosure Authorized years. In 1996 the South African Government introduced a macroeconomic strategy of structural adjustment (the Growth, Employment and Redistribution strategy, or GEAR), based inter alia on tight fiscal discipline, attracting foreign direct investment, expansion of private investment, promotion of higher domestic saving, and industrial competitiveness. In the subsequent years there was in effect a move away from a broad strategic statement on poverty reduction, as in the Reconstruction and Development Program (RDP), towards sector specific programs pursued through a wide range of government departments and agencies from nation to provincial to local levels. Still a lot of challenges remain. South Africa has been more successful at dismantling the economic structures of apartheid than its social structures. This has meant that the gains from Public Disclosure Authorized economic growth have not been distributed equitably. Reducing poverty and inequality are the urgent, outstanding challenges that the Government is poised to address. In 2006 the government launched the Accelerated and Shared Growth Initiative for South Africa (ASGISA) that consists of a focused set of policies and interventions to catalyze higher and 1 shared growth, complementing or strengthening existing programs. The Government has committed to the Millennium Development Goals (MDGs), including the reduction of poverty by 50% by 2014. The pro-poor orientation of spending in the country has contributed to improved social development indicators in a range of areas, particularly relating to access to services and education. The MDGs on primary education, gender, several health indicators, and environmental sustainability are likely to be achieved. South Africa tourism industry is one of its fastest-growing industries and the government considers it as a key sector to boost the country’s economic growth. Tourism industry has been identified as a high-growth potential area (due to its employment generation potential) in the government’s ASGISA. South Africa tourism industry contributed 8.8% to GDP in the year 2005 and it is expected to rise to 14% by the year 2014. The concept of “responsible tourism” has emerged as the most appropriate concept for the development of tourism in the country. This implies, among others, the promotion of nature-based tourism activities (such as game-viewing and diving) that rely on the rich biodiversity of South Africa. South Africa’s biodiversity importance According to the National Biodiversity Strategy1, South Africa is a mega diverse country, considered one of the most biologically diverse countries in the world2, largely due to the species diversity and endemism of the vegetation. Because of South Africa’s unique and rich biodiversity, as well as its potential for nature-based tourism development and job creation, considerable effort has gone to support conservation of natural resources, leading to some 6% of the country’s land area being managed in the form of land- and marine-protected areas. However, since most protected areas in South Africa are surrounded by poor rural communities, protection-only approaches to conservation management have resulted in poor local acceptance of conservation as a land use, and are no longer considered sustainable. Ongoing pressure on protected areas from adjacent local communities is leading to the formulation of strategies that balance conservation with development and poverty reduction. iSimangaliso Wetland Park- biodiversity importance South Africa’s third-largest protected area is the iSimangaliso Wetland Park, situated on the east coast of KwaZulu-Natal. The proclamation of the iSimangaliso Wetland Park in 2000, through Regulations established by the World Heritage Convention Act (1999), and the establishment of the iSimangaliso Authority (the Park’s dedicated management body) consolidated 16 parcels of previously fragmented land into a single protected area covering approximately 328,000 ha and extending 192 kilometers from the Mozambique border to Maphelane south of St Lucia. In the east, the Park is fringed by the Indian Ocean – the boundary runs three nautical miles out to sea and parallels the coast for the entire length of the Park – but the western boundary is convoluted and extends between one and 54 kilometers westwards from the coast. The Park was previously known as the Greater St. Lucia Wetland Park, but was renamed in November 2007. The word 'iSimangaliso' means 'a marvel' in Zulu. 1 South Africa’s National Bio-diversity Strategy and Action Plan, 2005 2 South Africa is one of 17 megadiverse countries according to UNEP World Conservation Monitoring Centre. 2 The global value of the biodiversity assets in iSimangaliso has been recognized internationally: the Park was inscribed on the World Heritage List in December 1999, contains four of the fifteen sites in South Africa registered as Wetlands of International Importance (under the Ramsar Convention) and forms a core component of the Maputaland-Pondoland-Albany Biodiversity Hotspot. The many and diverse ecosystems (wetlands, terrestrial and marine) contained in the Park provide important habitats for a large number of species, including those that are rare, threatened and/or endemic. The iSimangaliso Wetland Park harbors the last remaining subtropical area containing its original diverse components of wild plants and animals on the southeastern coast of Africa, and one of the last remaining in the world. The remarkable ecological diversity and significance of iSimangaliso is unique, not only on the African continent, but also in a global perspective. For example, available information suggests that no other locality on the globe harbors such a wide range of wetland types in a single protected area. Of the 32 marine/coastal and inland natural wetland forms recognized by the Ramsar Convention, no fewer than 23 of these forms occur within the Park. Economic/tourism importance of the iSimangaliso Wetland Park The iSimangaliso Wetland Park is widely regarded as an important economic asset with significant underdeveloped tourism potential. The tourist attractions within iSimangaliso include spectacular mountain ranges, wetlands, plains and bush land, a coastline and marine reserve that includes the southern-most coral reefs in Africa, dolphins, Humpback Whales, sea turtles and some 250 fish species, miles of fine beaches with clear warm-water seas, large inland lakes and estuaries, rich bird-life, marine-life and more than 3,000 plant types, a favorable year-round climate and a diversity of cultures, languages and customs among the Swazi, Zulu and Thonga people who have coexisted here for centuries. The iSimangaliso Wetland Park forms the core of the Lubombo Spatial Development Initiative (LSDI), a trilateral regional program that started in 1998 aimed at stimulating development in a severely impoverished zone encompassing northern KwaZulu-Natal (KZN), southern Mozambique and eastern Swaziland. The Spatial Development Initiative’s vision was to put an end to “the paradox of poverty amidst natural plenty”. The iSimangaliso Wetland Park was identified as the South African anchor tourism project of the LSDI, capable of establishing a tourism core, thereby stimulating regional growth and creating a significant number of jobs. Threats to the iSimangaliso Wetland Park The extensive iSimangaliso Wetland Park already has the basic elements of effective protection and management, including physical demarcation, infrastructure and equipment, park staff, management plan with different use zones, and at least some assurance of recurrent cost funding. Nonetheless, the Wetland Park faces two key threats that have not yet been adequately addressed: (i) Changes in the hydrological regime. The wetland ecosystems of iSimangaliso--most notably the Lake St. Lucia Estuary--are under considerable threat from the hydrological imbalance brought about by human activities, such as sugar cane and forest plantations, particularly along the Umfolozi River. Together, these comprise a dynamic and complex set of interconnected systems, in need of medium to long-term sustainable management of the 3 floodplain, river mouth and estuary, as well as related socio-economic development options. As a result of such imbalance, the volume of water in the Lake St. Lucia system3 has started to diminish and
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