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Mmopelwa, G. 2006. Economic and financial analysis of harvesting and utilization of river reed in the Okavango Delta, Botswana. Journal of Environmental Management, 79(4): 329–335


Description:

Economic and financial analysis of harvesting and utilization of river reed in the Okavango Delta, Botswana.

Summary / Notes:

The Okavango Delta, the largest Ramsar wetland site, is one of the most resource-rich ecosystems in Botswana. A range of resources, including reeds, contribute in various ways to the well-being of many of the communities through subsistence and income generation. The economic value of reeds and other resources found in wetlands has been poorly understood, leading to the perception that wetlands are wastelands, and have little or no economic values. Such resources are therefore likely to receive lower priority in conservation when evaluated against other alternative activities. The aim of this research was to determine the benefit and financial and economic viability of harvesting river reed in the Okavango Delta. Primary data were collected through a structured questionnaire administered at three villages in the Okavango Delta. Secondary data were collected from existing literature. Financial and economic analysis was undertaken using static and financial models. Market prices were used to calculate the net income generated from the sale of harvested reed. The measurement criteria for static models were the annual net cash income, net annual economic benefit, and return on investment (ROI), while those under the dynamic models were the net present value (NPV), benefit cost ratio (BCR), and the net benefit investment (N/K) ratio. It was more financially profitable and economically viable to harvest and sell reeds at Shorobe village (a village relatively close to the District economic centre, Maun), than Shakawe or Etsha-13. Keywords: Okavango Delta, River reed, Net cash income, Direct use value, Net present value, Benefit cost ratio, Net investment ratio.

Year: 2006

Type: Journal Article

URL: http://www.sciencedirect.com/science/article/pii/S0301479705002513


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