State of Conservancy update booklet 2006

Namibia's communal conservancies: a review of progress in 2006

Chapter 4

Benefits

Sources and uses of financial and economic gains

Natural resources form the basis of rural peoples livelihoods. Supporting the sustainable use of natural resources and in so doing improving livelihoods of rural people, is a key aim of the CBNRM programme. Figure 8 reflects the growing value of cash and kind benefits generated through new or additional activities which give many households access to cash and other benefits that they never had before, and that would not have been possible prior to the passage of innovative conservancy legislation in 1996.

In 2006, most benefits were generated through conservancies, with the 'earning power' of conservancy-based activities being greater than those of all other CBNRM activities. Conservancies earned more than N$19 million, which represents approximately 73% of the total CBNRM income of N$26,178,404. Table 5 also shows additional income of more than N$7 million from other CBNRM activities. This income is generated from activities that are either outside conservancies, in emerging conservancies or, in the case of those inside conservancies, where there is no formal relationship between the particular enterprise and the conservancy.

This can occur where the enterprise predates the formation of the conservancy. The majority of this N$7 million is generated by small tourism enterprises (campsites, traditional villages and tour guiding), thatching grass and crafts

Figure 8. Incomes from CBNRM have risen from nothing in 1994 to more than N$26 million in 2006. The graph divides income into three categories: cash payments to conservancies, non-cash or in-kind incomes to conservancies, and incomes to CBNRM activities outside conservancies. Information prior to 1998 did not allow for income to be divided into these three categories. The actual values are shown in Namibian $ in the table 5 below, and cover incomes to both registered and non-registered conservancies.

Table 5. The total value of income each year to conservancies and other CBNRM activities outside of conservancies.

Table 6. The value of conservancy income from different sources in 2006, and the percentages that each source contributed to all conservancy generated income.

Figure 9. The main sources of incomes from conservancies during 2006. All incomes are as cash except those listed as 'Use of own game' and Trophy meat distribution'. The actual values in the graph are shown in Table 6.

Conservancies obtain benefits from a variety of different sources (see Figure 9). Income in the form of direct payments to conservancies and wages comes mainly from joint venture lodges, trophy hunting, small enterprises (e.g. campsites), craft sales and sale of game. In addition, some benefits are non-financial or'in-kind' such as meat from hunting or other contributions (computers, education materials, equipment, etc.) to local social or economic development activities primarily made by joint venture partners. In 2006 non-cash benefits to conservancies accounted for 17% of all benefits generated.

By far the most lucrative source of income is from joint venture tourism lodges and camps in which conservancies negotiate a levy or income sharing agreement. A total of N$9,830,198 was earned from these ventures during 2006, representing 52% of all conservancy income. This is a clear indication of the successful approach of bringing registered conservancies with tourism potential together with private sector investors, who recognise a viable tourism opportunity and help conservancies 'unlock' this potential.

At the end of 2006 there were 13 formal joint venture agreements that were operational and generating income for conservancies. A further six conservancies were receiving income from operators for traversing or resource utilisation. In addition, there are currently 20 potential joint venture agreements under negotiation.

Figure 10. Income earned by conservancies from joint venture tourism and trophy hunting increased about twenty four and fourteen-fold respectively between 1999 and 2006. Whilst use of own game showed a decrease in 2006, shoot and sell hunting increased five fold in 2006.

Trophy hunting concessions currently provide the second highest source of income for conservancies, in 2006 generating N$7 million, of which 87% was from concession fees and 13% from meat distribution. By the end of 2006, 21 concessions extending over 24 conservancies had been allocated to professional hunters.

In 2006, the total income generated from direct wildlife utilisation was N$8.29 million or 44% of all conservancy income with the key activities being trophy hunting, 'premium hunting', 'own use hunting' and 'shoot and sell'. Of the total generated, approximately N$1.67 million was in the form of game meat that was distributed to members and residents of conservancies, a key form of benefits for local people.

All other sources of conservancy income were considerably smaller than those provided by joint venture lodges and camps and trophy hunting/wildlife utilisation. While these other income categories are relatively small in overall terms, they do provide substantial benefits to some conservancies and to individual members, for example women in the case of crafts.

Although not included in the above data sets (Figure 9 and Table 6) the first 13 gazetted community forests also recorded income for 2006. During the year they generated a total amount of N$416,506 mainly from the commercial use of firewood, timber, poles, devil's claw and wood carvings.

A number of conservancies contributed to their own capital development projects such as Marienfluss conservancy that purchased a new 4x4 vehicle for conservancy management use as well as to transport members to hospitals and clinics. In addition to conservancy management jobs, a further 435 full time and 650 part time jobs were created within registered conservancies.

A number of conservancies used funds for a range of social benefits including school bursaries, water installations and cash for school development, soup kitchens for pensioners, contributions to Traditional Authorities and in some cases support for HIV & AIDS affected orphans. During the year N$1.67 million worth of household game meat from various forms of hunting was distributed to households within conservancies with additional amounts going to local schools and old age pensioners. Cash payments were made in several conservancies but a growing trend within conservancies is towards pooling money at conservancy or sub unit (village) level for use in projects or other income generating activities.

This document reflects the continued and notable progress of CBNRM, primarily in the wildlife and tourism sector, during 2006. The progress and challenges of Namibia's communal area conservancies during 2007 will be compiled in an expanded document available in early 2008.

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