IUCN Regional Office for Southern Africa ZAMBEZI BASIN WETLANDS CONSERVATION AND RESOURCE UTILISATION PROJECT: ECONOMIC VALUE OF THE ZAMBEZI BASIN WETLANDS December 1999 by Jane Turpie1, Brad Smith 1, Lucy Emerton2 & Jon Barnes3 1 FitzPatrick Institute, University of Cape Town, Rondebosch 7701, South Africa 2 IUCN Eastern Africa Regional Office, Box 68200, Nairobi, Kenya 3 Directorate of Environmental Affairs, Private Bag 13306, Windhoek, Namibia with input from Jack Ruitenbeek H.J. Ruitenbeek Resource Consulting Limited Sponsored by: The Canadian International Development Agency (CIDA) Printed by University of Cape Town Cover photo (JK Turpie): Ndinde Marsh, Lower Shire Wetland CONTENTS 1 INTRODUCTION .................................................................................................................. 1 1.1 Background and rationale.............................................................................................. 1 1.2 Aims of the study.......................................................................................................... 3 2 WETLAND VALUATION: A REVIEW...................................................................................... 7 2.1 Introduction.................................................................................................................. 7 2.2 The concept of value..................................................................................................... 7 2.3 Types of economic value of wetland resources................................................................ 7 2.4 An appraisal framework for valuation.............................................................................10 2.5 Economic valuation techniques.....................................................................................10 2.5.1 Market value approaches.........................................................................................11 2.5.2 Surrogate market approaches..................................................................................14 2.5.3 Simulated market approaches..................................................................................15 2.5.4 Benefits transfer .....................................................................................................16 2.6 The applicability of these methods in wetlands and developing-country context……….......17 2.7 Issues of scale, time and discounting in the calculation of present value...........................18 2.7.1 The choice and effects of scale................................................................................18 2.7.2 Present value and discounting .................................................................................18 3 STUDY AREAS ...................................................................................................................21 3.1 Defining the wetlands and study areas ..........................................................................21 3.2 The Barotse Floodplain................................................................................................23 3.2.1 Extent of the study area...........................................................................................23 3.2.2 Biophysical characteristics.......................................................................................23 3.2.3 Socio-economic environment...................................................................................26 3.2.4 Pressures on natural resources................................................................................27 3.3 The Chobe-Caprivi wetlands.........................................................................................29 3.3.1 Extent of the study area...........................................................................................29 3.3.2 Biophysical characteristics.......................................................................................29 3.3.3 Socio-economic environment...................................................................................32 3.3.4 Pressures on natural resources................................................................................34 3.4 The Lower Shire wetlands............................................................................................35 3.4.1 Extent of the study area...........................................................................................35 3.4.2 Biophysical characteristics.......................................................................................37 3.4.3 Socio-economic environment...................................................................................38 3.4.4 Pressures on natural resources................................................................................40 3.5 The Zambezi Delta ......................................................................................................41 3.5.1 Study area..............................................................................................................41 3.5.2 Socio-economic environment...................................................................................44 4 DIRECT USE VALUES.........................................................................................................47 4.1 Introduction.................................................................................................................47 4.2 Study approach and valuation methods.........................................................................47 4.2.1 Household surveys.................................................................................................48 4.2.2 Focus group discussions .........................................................................................50 4.2.3 Static analysis: calculation of annual use values........................................................51 4.2.4 Dynamic analysis: calculating net present value ........................................................52 4.3 The Barotse Floodplain................................................................................................53 4.3.1 Livestock................................................................................................................53 4.3.2 Crops.....................................................................................................................56 i 4.3.3 Fish.......................................................................................................................59 4.3.4 Wildlife...................................................................................................................64 4.3.5 Wild plants .............................................................................................................67 4.3.6 Clay.......................................................................................................................75 4.3.7 Tourism..................................................................................................................76 4.3.8 Overall annual use value and local perceptions .........................................................76 4.4 The Chobe-Caprivi wetlands.........................................................................................79 4.4.1 Livestock................................................................................................................79 4.4.2 Crops.....................................................................................................................82 4.4.3 Fish.......................................................................................................................85 4.4.4 Wild animals...........................................................................................................89 4.4.5 Wild plants .............................................................................................................92 4.4.6 Ecotourism...........................................................................................................100 4.4.7 Overall use value and local perceptions..................................................................102 4.5 The Lower Shire wetlands..........................................................................................104 4.5.1 Livestock..............................................................................................................104 4.5.2 Crops...................................................................................................................106 4.5.3 Fish.....................................................................................................................110 4.5.4 Wild animals.........................................................................................................114 4.5.5 Wild plants ...........................................................................................................116 4.5.6 Ecotourism...........................................................................................................125 4.5.7 Overall use value and local perceptions..................................................................125 4.6 Zambezi Delta...........................................................................................................128 4.6.1 Livestock..............................................................................................................128 4.6.2 Crops...................................................................................................................128