A Study of the Contribution of Sustainable Natural Resource Management to Economic Growth, Poverty Eradication and Achievement of NDP 10 Goals A Discussion Paper By Botswana Institute for Development Policy Analysis In association with GY Associates Ltd 32 Amenbury Lane, Harpenden Herts. UK. AL5 2DF web site: www.gya.co.uk Submitted to: Ministry of Finance and Development Planning, Gaborone, Botswana April 2012 Contents List of Figures ................................................................................................................................ iv List of Tables ................................................................................................................................. vi Acronyms ..................................................................................................................................... viii Executive Summary ....................................................................................................................... ix 1. Introduction ............................................................................................................................. 1 2. A Conceptual framework for analysing the links between natural resource use and human development .................................................................................................................................... 3 3. Climate Change ....................................................................................................................... 8 Climate Change ........................................................................................................................... 8 4. Non-renewable Natural Resources ........................................................................................ 11 The Minerals Sub-sector ........................................................................................................... 11 Diamonds ............................................................................................................................... 12 Copper and Nickel ................................................................................................................. 18 Coal ........................................................................................................................................ 22 Gold ....................................................................................................................................... 28 Soda Ash and Salt ..................................................................................................................... 30 5. Renewable Natural Resources ............................................................................................... 33 Arable Agriculture, Economic Growth and Poverty Eradication ............................................. 37 Veld Products ............................................................................................................................ 49 Livestock Production................................................................................................................. 52 Tourism Sector .......................................................................................................................... 59 Wildlife and Parks ................................................................................................................. 60 Community Based Natural Resource Management (CBNRM) ............................................ 68 Fisheries .................................................................................................................................... 78 Forestry, Livelihoods and Poverty Eradication ......................................................................... 85 Water ............................................................................................................................................. 93 Energy, Environment and Poverty Eradication ......................................................................... 98 6. The Makgadikgadi Pan ........................................................................................................ 110 7. The Okavango Delta ............................................................................................................ 123 8. Overall linkage Between Natural Resources and Economic Development of Botswana ... 135 ii References ................................................................................................................................... 141 iii List of Figures Figure 1: A conceptual framework for natural resource use & human development in Botswana 3 Figure 2: Diamond Opening Stock; 1980-2005 ............................................................................ 12 Figure 3: Diamond Production; 1980-2008 (Million Carats) ....................................................... 13 Figure 4: Diamond Production Volume and Real Profit .............................................................. 14 Figure 5: Share of Exports of Principal Commodities; 1974-2008 .............................................. 17 Figure 6: Trends in total matte production and production of Cu and Ni (tons) .......................... 19 Figure 7: Trends in employment by different mining companies................................................. 20 Figure 8: BCL Sponsored students ............................................................................................... 21 Figure 9 Coal Deposits in Botswana ............................................................................................. 24 Figure 10: Coal Production in Botswana: 1997 to 2008 ............................................................... 25 Figure 11: Trends in gold production (KGs) ................................................................................ 29 Figure 12: Trends in gold production (KGs) ................................................................................ 29 Figure 13: Trends in production of soda ash and salt (tonnes) ..................................................... 30 Figure 14: Trends in employment ................................................................................................ 31 Figure 15: Total Area Planted (ha); 1979-2004 ............................................................................ 38 Figure 16 Area Planted in Traditional sector (ha); 1979-2004 ..................................................... 39 Figure 17: Area Planted in Commercial Sector (ha); 1979-2004 ................................................. 39 Figure 18: Traditional Sector Holdings; 1979-2004 ..................................................................... 40 Figure 19 : Number of ISPAAD Beneficiaries ............................................................................. 43 Figure 20: Share of ISPAAD Beneficiaries by Districts .............................................................. 43 Figure 21: Trends in Cereal Production relative to Cereal Requirements in Botswana 1979 – 2006............................................................................................................................................... 46 Figure 22: Horticultural Production (mt) ...................................................................................... 46 Figure 23: Horticultural Yield (mt/ha) .......................................................................................... 47 Figure 24: Trends in Trade Balance for Horticulture in Botswana 2003 -2010 ........................... 47 Figure 25: Cattle Population by Production System; 1979-2004 ................................................. 53 Figure 26: Small stock population; 1979-2004 ............................................................................. 54 Figure 27: Pig Population; 1979-2004 .......................................................................................... 56 Figure 28: Agricultural GDP Shares; 1994-2009 ......................................................................... 57 Figure 29: Map showing the country of Botswana and the protected areas ................................. 61 iv Figure 30: Tourist and Day Arrivals; 1994-2010 ......................................................................... 64 Figure 31: Revenues from CBNRM Activities for 2006 – 2009 .................................................. 70 Figure 32: Percentage Distribution, Households by Principal Energy Source for Cooking 1981, 1991 &2001 .................................................................................................................................. 88 Figure 33: Water supply and demand by district councils ............................................................ 94 Figure 34: Total water use account; 1992-2003 ........................................................................... 95 Figure 35: Share of total water use account by sector; 1992-2003 ............................................... 96 Figure 36: Wastewater Use Trend in Botswana; 1992-2003 ........................................................ 97 Figure 37: Final Energy Demand (Teragoules) by energy source ................................................ 98 Figure 38: Daily Waste Average at the Gaborone Landfill, by type (tonnes), 1993-1996 ......... 104 Figure 39: Waste Quantities (000‟ tonnes), 1993-1996 .............................................................. 104 Figure 40: The balance of ecosystem values estimated .............................................................