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Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University
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Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Mar 27, 2015

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Page 1: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Water Accounting Experiences from Southern Africa

Glenn-Marie Lange

The Earth Institute at Columbia University

Page 2: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Natural Resource Accounting Programme in East & Southern Africa

Started in 1995, currently in Phase 3

Includes

• Botswana, Namibia, South Africa

• More recently, Mozambique, Tanzania, Uganda

Secretariat at the University of Pretoria, South Africa

Page 3: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Natural Resource Accounting Programme in East & Southern Africa

Minerals Water Fisheries Forests Land/Land degradation

Botswana X X

Namibia X X X partial partial

South Africa X X X

Tanzania X X X X

Mozambique Regional case study

Regional case study

Uganda X X

Page 4: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

WATER: Critical Resource in Botswana, Namibia, South Africa

ALL COUNTRIES CHARACTERIZED BY:

• Low, highly variable rainfall (250-500mm/year), high evapotranspiration

• High reliance on fossil groundwater (Botswana and Namibia)

• No perennial rivers entirely within a country

• Growing reliance on shared international riversRegional water commissions negotiate allocations of water from int’l rivers

• Water supply vulnerable to climate change

• Water is highly subsidized

NEED TO MONITOR AND MANAGE WATER IN SOUTHERN AFRICA

Page 5: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

What Do Policy-Makers Need from Water Accounts?

Economic information to make decisions:1. Allocation of water, water infrastructure among competing

users:• Economic users: agriculture-hydroelectric-municipal, etc.• Ecological requirements: biodiversity-mining-tourism• Meeting international requirements

2. Water pricing and economic instruments: • Understand variation of water costs/treatment by region and set prices

accordingly• Understand impact of water tariffs on different industries and different

social groups, especially the poor

3. Coordinating policy in related sectors: agriculture, rural development, tourism, etc.

4. Planning for future water requirements, water conservation & demand management

Page 6: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Water Accounts in Botswana, Namibia and South Africa

Years covered:– Botswana: 1993-2001– Namibia: 1993 & 1996, 1997-2000– South Africa: 1998 and 2000

Water classified by natural source & institution that supplies water

Water end-users classified by – ISIC: Botswana and Namibia– Dept of Water Affairs classification: South Africa— THIS IS A

PROBLEM—colleagues at Univ. of Pretoria have partially adjusted the official water accounts

Geographic coverage – National water accounts: Botswana, Namibia, South Africa– Catchment-level accounts: South Africa, partial in Namibia,

possible in Botswana

Page 7: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Water Classifications: Natural Source and Supplying Institution

CLASSIFICATION OF NATURAL SOURCES

CLASSIFICATION OF SUPPLYING INSTITUTIONS

BOTSWANA GroundwaterDam storage of seasonal riversPerennial surface water

Water Utilities CorporationDept. of Water AffairsDistrict CouncilsSelf-providers

NAMIBIA GroundwaterDam storage of seasonal riversPerennial surface waterRecycled wastewater Seawater

NamwaterMunicipal authoritiesRural Water Supply Rural communitiesSelf-providers: Agriculture, Mining

SOUTH AFRICA

GroundwaterSurface waterSoil water

Dept. of Water Affairs and ForestryIrrigation BoardsWater BoardsMunicipalities

Page 8: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Classification of End-Users(number of industries in each country’s water accounts)

Botswana Namibia South Africa

Agriculture 2 5 4

Mining 4 2 2

Manufacturing & utilities

5Aggregated from

8

10Aggregated from

20

4

Services 7 7 2

Government 2 1 1

Households(urban-rural)

2 2 2

Total end-users in water use accounts

22 27 14

Losses partial yes No

Page 9: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Data Sources for Water Use:Metered Water Use or Estimated Use?

Administrative records that

meter individual

users

By estimation

(mainly

agriculture)

Botswana 49% 51%

Namibia 38% 63%

South Africa 0% 100%

Page 10: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

SEEAW Chapter 9.B Indicators and statistics

B.1 Source of pressure on water resources:

• Macro trends in total water use, emissions, water use by natural source and purpose, etc.

• Industry-level trends• Technology and driving forces

B.2 Potential for increasing effective supply and improving water productivity

• Reducing system losses

B.3 Water pricing and incentives for water conservation

B. 4 Sustainability: comparing water resources and water use

Page 11: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

0.9

0.951

1.051.1

1.151.2

1.251.3

1.351.4

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Percapita water use

GDP/m3Volume

0.900.951.001.051.101.151.201.251.301.351.40

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Percapita water use

GDP/m3Volume

NATIONAL TRENDS:

Decoupling of Growth & Water

Use?

Index of water use & productivity

Botswana, 1992 = 1.00

Namibia: 1993 = 1.00

Page 12: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Water supply by natural source in Namibia, 2001/02

020406080

100120140

Ephem

eral-

dam

Gro

undwat

er

Peren

nial

Recyc

led w

ater

Seawat

er

mill

ion

m3

Total water supply: 395 Mm3Total freshwater: 326 Mm3

Some groundwater from fossil sources. Nationally small, <5% of water use.Locally, 100% with few alternatives.

Page 13: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Supply of Freshwater by Supplying Institution

0%

10%

20%

30%

40%

50%

Namwat

er

Mun

icipa

lities

Rural

Wat

er S

upply

Agricu

lture

Min

es

1997/98

2001/02

Note: rural communities not recorded as supplying own water

Page 14: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Industry-level trends: Freshwater use by source and end-user in

Namibia, 2001/02 (million cubic meters)Total Dams Groundwater Perennial Recycled

AGRICULTURE 210.2 60.5 74.6 74.5 0.5 Commercial agriculture 145.2 48.6 51.4 44.7 0.5

Irrigation 119.8 47.3 27.2 44.7 0.5Livestock 25.5 1.3 24.1

Traditional agriculture 64.9 11.9 23.3 29.7Irrigation 32.2 5.8 0.6 25.8Livestock 32.7 6.1 22.7 3.9

MINING (2) 7.0 1.4 3.2 2.4MANUFACTURING 8.0 2.9 2.6 1.9 0.1 Food proc (4) 3.6 1.5 1.5 0.6 0.0 Other Manufact. (10) 4.4 1.4 1.2 1.3 0.0SERVICES (7) 7.9 2.2 4.6 0.8 0.3GOVERNMENT 14.1 5.0 6.2 2.9 0.1HOUSEHOLDS 33.6 11.8 14.6 7.0 0.3

Rural 9.1 0.4 3.8 5.0Urban 24.5 11.4 10.8 2.0 0.3

TOTAL USE 281.5 86.0 107.2 90.8 1.3LOSSES 44.5

Page 15: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

INDUSTRY-LEVEL TRENDS:ENVIRONMENTAL ECONOMIC PROFILE

Distribution of water use, GDP & employment by industry in Namibia, 2001

0%

10%

20%

30%

40%

50%

60%% Water use% GDP% Employ.

Page 16: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Water Productivity by Industry in Namibia, 1997 & 2000:

GDP per m3 water use (constant 1995 prices)

-200400600800

1,0001,2001,400

ComCro

ps

ComL'

stock

Trad.

Agr

.

Fishing

Min

ing

Man

uf.

Utilitie

s

Servic

esG

ovt

Econo

myA

vg

N$/

m3

wat

er u

se

1997-98

2001-02

Page 17: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Understanding Driving Forces

What drives water demand?

Final use by households + total water needed to produce goods for Final Demand:– Household consumption– Government expenditures– Investment– Exports

Total water requirements include direct + ‘upstream’ water, that is, the water used to produce all the inputs to production. calculated using Input-Output model

Page 18: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Water intensity (direct):

Litres/N$output

AGR Commercial crops 42.5% 326.6 350.7

Commercial animal products 9.0% 17.6 35.7

Traditional agriculture 23.1% 117.7 156.8

Fishing 0.2% <0.1 21.8

MINING Mining 2.5% 1.0 16.9

MANUF Meat processing 0.5% 1.3 31.5

Fish processing 0.3% 0.7 18.6

Grain milling 0.1% 0.3 33.6

Beverages and other food processing0.4% 0.4 27.4

Other manufacturing 1.4% 0.7 1.24

Electricity <0.1% 0.2 16.3

Water <0.1% 0.2 18.4

SERVICES Construction 0.1% 0.1 31.9

Trade; repairs 0.7% 0.4 22.0

Hotels and restaurants 0.6% 1.3 21.7

Transport 0.2% 0.1 23.7

Communication 0.0% 0.1 15.9

Finance and insurance 0.2% 0.2 22.3

Business services 0.1% 0.1 18.2

Other private services 1.1% 2.0 31.8

5.0% 1.7 24.3

Total domestic water requirements:

litres/N$ output

GOVERNMENT

Percent of water use

Direct and Total Water Requirements by Industry: Namibia, 2001/02

Page 19: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Losses & Unaccounted for Water in Namibia, 2000

0%

10%

20%

30%

40%

50%

60%

70%

80%

Averagefor alltowns

63% 21% 11% 5%

Nationalaverage

Loss rates in towns according to the % of totalmunicipal water provided

Lo

ss r

ates

as

% o

f to

tal

wat

er u

se Max %

Min %

Page 20: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Average cost of supply by Institution and source of water in Namibia, 2000

012345678

All

sour

ces

Dam

Gro

und

Per

enni

al

All

sour

ces

Dam

Gro

und

Per

enni

al

All

sour

ces

Gro

und

Per

enni

al

Gro

und

Namwater Rural Water Supply RuralCommunities

Agr. Self-providers

N$

per

cu

bic

met

er o

f w

ater

Page 21: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Water Subsidies by NamWater, the bulk water supplier

(provides 40% of all water; Tariffs – Supply Costs)

Tariff-Supply Cost

Water Productivity

$/m3 water use $VA/m3 water

Crop irrigation -3.04 0.99

Livestock 0.02 20.86

Mining 0.00 52.72

Manufacturing 0.99 226.56

Construction -2.21 1774.40

Services -2.40 575.31

Government -0.66 234.19

Sales to other water suppliers 0.68 NA

Page 22: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

CROSS COUNTRY COMPARISONS:Water productivity in Botswana, Namibia, and South

Africa, 2000 (rands of value-added per cubic meter of water used)

0

50

100

150

200

250

300

350

400

450

Botswana Namibia South Africa

Ran

ds G

DP/

m3

GDP/m3 water

GDP/m3 water exc.Agric.

Botswana Namibia South Africa

Agricul-ture 14 7 3

Mining 513 389 142

Manufac-turing 1000 455 215

Services 2962 1113 606

Govern-ment 553 338 876

National Level By Industry

Page 23: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Water subsidies in Botswana, Namibia and South Africa, 2000

0%

10%

20%

30%

40%

50%

60%

70%

80%

Botswana Namibia South Africa

No subsidy to any user

No overall subsidy, butextensive cross-subsidies of customers

High subsidy

Page 24: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Water management & policy analysis

Trade & the environment

Managing an international river basin

Page 25: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

International Trade & Water UseAre water-scarce countries exporting water?

How much can imports reduce pressure on water demand?

• ‘Virtual Water’ is the water embodied in imported goods

• countries can meet some of their water needs by importing water-intensive goods rather than producing the goods themselves

Net balance of trade in ‘virtual water’ determined by

• Volume of imports compared to exports• Total water intensity of imports compared to exports

Page 26: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

International Trade & Water UseHow much does Int’l Trade drive water demand in

Namibia, Botswana and South Africa?

Export promotion is a major part of national economic development strategy

Exports are dependent on primary & processed primary commodities76% Botswana: mostly mining79% Namibia: agriculture, mining, fisheries47% South Africa: agriculture, forestry, mining

Primary products, especially agriculture and processed agricultural products can be water intensive

Page 27: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Method of AnalysisUse Input-Output analysis to calculate direct and total

water requirements for exports & imports

Exports are no problem, use countries’ water accounts

Problem: what is the water content of imports from another country?Botswana & Namibia get most of their imports from South Africa, so we use South Africa’s water accounts & the results are accurate

But South Africa imports mainly from other countries…so– Assume other countries have same water intensity as South Africa – Use South Africa’s water accountsTHIS ASSUMPTION IS WIDELY USED IN ALL COUNTRIES

We can only calculate trade in water accurately when ALL countries have water accounts

Page 28: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

International Trade & Water UseAre water-scarce countries exporting water?

Net imports of water in Botswana, Namibia, South Africa in 1998

0%

10%

20%

30%

40%

50%

60%

70%

Botswana Namibia South Africa

Exports of water asshare of national useImports of water asshare of national use

Page 29: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Why is South Africa a net exporter of water?Its volume of exports is slightly > imports, but mainly because

water intensity of exports > imports

Water intensity of trade summed up over products (m3 per 1000 rands of imports or exports)

0

5

10

15

20

25

Botswana Namibia South Africa

m3

wat

er p

er 1

000

ran

ds

Exports

Imports

Page 30: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

RIVER BASIN

ACCOUNTS

Orange River: How should

water be shared by the 4 riparian

countries?

LesothoSouth Africa

BotswanaNamibia

Page 31: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Supply & use of water by riparian states in the Orange River Basin

0%10%20%30%40%50%60%70%80%90%

UpperOrange

LowerOrange

Lesotho South Africa Namibia Botswana

Supply

Economic uses

Page 32: Water Accounting Experiences from Southern Africa Glenn-Marie Lange The Earth Institute at Columbia University.

Water productivity among riparian states in the Orange River Basin

(rands GDP/m3 of water used)

01020304050607080

Excltransfers to

other WMAs

Incl transfersto otherWMAs

Lesotho South Africa Namibia Botswana

Ran

ds

GD

P/c

ub

ic m

eter

of

wat

er