Economic and financial incentives for wildlife use on private land in Namibia and the implications for policy

Abstract

Aggregate estimates for wildlife populations and species diversity on private land in Namibia were made for 1972 and 1992, using questionnaire surveys. Animal numbers and biomass appear to have increased by some 80%, or 3% per annum, over the period. The number of game species recorded increased by 44%. Cost-benefit analysis models were developed and used to analyse economic and financial efficiency of land use involving wildlife on private land. Financial profitability was generally low in the case of both livestock-game production for consumptive use and wildlife production for non-consumptive use. However these activities appear to be economically efficient, and result in a positive contribution to national income. The results suggest that there are financial incentives for private landholders to group together and form large scale conservancies. The latter benefit from economies of scale which make them more financially profitable and robust, and also more economically efficient, than ranches. Wildlife production for non-consumptive wildlife viewing yielded greater economic net value added per unit of land than livestock-wildlife production for consumptive use, particularly at the larger conservancy scale of operation. Aggregate estimates, in 1994 prices, of the annual net value added to national income from wildlife use on private land are N$ 30.6 million in 1972 and N$ 56 million in 1992. The economic value of wildlife use as a proportion of the total value of private land rangeland use has risen from 5% to 11% over the 20-year period. Current policy to promote both wildlife use and the development of wildlife conservancies on private land appears to be economically sound.