Local Enterprise Development in Action – The Namibian Experience - Manuscript

How can Ecotourism contribute to Poverty Reduction and Conservation Aims.

The Namibian Experience Andee Davidson, Oslo May 15th 2007

A partnership between Namibian NGOs & Government

[Note: This paper is an overview of the Namibian CBNRM Program with special reference to the presentation given at the Conference in Oslo, May 2007. Apologies for the summary format] 1. Background For the past thirteen years, Namibia has developed one of the most dynamic and innovative conservation-development movements in the world. This period has produced a number of remarkable achievements, having notable national level impacts with respect to improved natural resources, governance, and rural livelihoods. However, it is recognized by both donors and beneficiaries alike that Namibia’s National Community Based Natural Resource Management (CBNRM) Program is still in its infancy and that many opportunities and challenges lie ahead.

2. Namibia Development Setting

Namibia acquired its independence from South Africa in 1990.

Since independence, Namibia has put in place a stable government, and its excellent infrastructure, combined with a wealth of valuable natural resources, provides excellent long-term development opportunities. However, extreme economic and social disparities exist, with income distribution being among the most unequal in the world.

Namibia Climate arid to semi-arid 823,680 km2 Gained independence in 1990 Per capita GDP $1,614 (2001) Population 1.8 million Top 7% of population accounts for 48% of consumption Gini coefficient of 0.7 26 spoken languages/dialects

The national economy is heavily dependent on the utilization and/or extraction of its rich natural resource base. Mining, at 12%, is recognized as the largest contributor to the GDP, while a rich ocean fishery (10%) and a rapidly growing tourism sector (14.2 %) are regarded as the second and third largest contributors to the GDP. Agriculture contributes slightly less than 6% to the GDP, but plays a major role in rural livelihoods despite the unsuitability of many of the current crop and livestock production practices being applied on much of Namibia’s arid lands.

Land is administered through five tenure systems. Some 43% of Namibia is occupied by freehold (largely white-owned farms) and 42% is communal lands (where the majority of rural Namibians reside). Almost 14% is composed of an internationally-recognized protected park system, while the remaining (less than 1.5%) comprises a restricted mining reserve and urban land. As with income, land distribution is inequitable and the Government of the Republic of Namibian (GRN) is facing serious challenges with the redistribution of land in a socially acceptable and environmentally effective manner.

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The labor force is largely unskilled, with a literacy rate of only 40%. Consequently, the national unemployment rate is high (35-40%), and this situation is set to further deteriorate as more than 53% of the population is below 20 years of age and there are acute shortages of employment opportunities for the rapidly growing workforce. Workforce productivity is also in jeopardy from HIV/AIDS, with infection rates of sexually active adults being estimated at 22% country-wide and as high as 40% in Caprivi. Given the projected increased HIV/AIDS infection rates and the shortage of skilled labor, the national workforce capacity and national development, in general, are under threat.

3. History and Status of CBNRM In Namibia: Namibian CBNRM activities predate independence by several years. In 1984 the NGO, Integrated Rural Development and Nature Conservation (IRDNC), initiated a community game guard (CGG) program in the Damaraland area of northwest Namibia. This initial CBNRM effort instigated community oversight and management of heavily poached wildlife populations through establishment of a network of Community Game Guards (CGGs) under the jurisdiction of tribal traditional authorities. Though against the policy of the then-apartheid government, the CGG Program was well received by local communities. The resultant heightened sense of community ownership and stewardship effectively countered heavy poaching of threatened wildlife populations (i.e., black rhino, elephant, etc.) and produced the embryonic start of today’s on-going recovery of what were previously vulnerable wildlife populations in northwest Namibia.

Significant external support to the CBNRM Program was begun in 1991. The program now has the support of 13 NGOs, the University of Namibia, several government departments and the private sector.

The first seven years of the Program (1993-2000) was a foundation-building effort for the National CBNRM Program, predominantly focusing on policy reform, CBNRM awareness development, mobilization and organization of pilot conservancies, and establishment of support capacity and systems to conservancies and community-based tourism (CBT) enterprises. Fundamental to the success of this Phase and the National CBNRM Program was the 1996 passage of an Amendment to The 1975 Nature Conservation Ordinance. This innovative legislation grants limited ownership and use rights over wildlife and tourism to communities who form conservancies. As such, the Amendment has provided impetus for vast numbers of communal area residents, who had been alienated from their wildlife resources by the previous colonial and apartheid governments, to view wildlife as a valuable asset instead of a detriment to their livelihoods. The first four communal conservancies were registered in 1998, and the number of registered conservancies has since swollen to 50, with approximately thirty more conservancies under formation. All-told, close to 230,000 people are supporting conservation activities in registered conservancies and an estimated, additional 70,000 are mobilizing in developing conservancies.

The emergence of the National CBNRM Program was further bolstered by a second period (1999-2004) in which partners placed increased emphasis on programmatic sustainability issues, including: benefits generation and creation of financially viable conservancies, development of community natural resource management and monitoring

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systems, enhancement of conservancy management structures, development of national CBNRM coordination and support structures, strengthening of the capacity of the overstretched CBNRM support organizations, and documentation and sharing of CBNRM best practices with regional CBNRM stakeholders.

Tr Ed ainin uc g & ati on

NANGOF LAC UNAM DRFN NASCO Secretariat NDT NNDF CRIAA NACOBTA RISE

IRDNC RF

Omusati

Kavango

Conservancies

Kunene Erongo

Hardap

Omaheke

Democratic Governance

Caprivi Otjozondjupa

ed rov Imp tural Na rces ou Res

ed rat e eg r c t Int esou emen R ag n Ma

Be Gen nefits era tion

ict nfl Co on l & uti ga ol Le Res

Karas

& ns tio ns ica tio un ela mm ic R Co Publ

A Re pplie se d arc h

MET

Conservancy Association/s

NNF

Bu s I ine Ge ncom ss & ne e rat ion

cy ca vo Ad

P Le olicy g Re islati & for on m

HIV/AIDS

Communal Area Residents Figure 1. NACSO members and strategies to support communal conservancies and conservancy association(s) in regions where conservancies have formed.

Two important CBNRM support structures emerged during Phase II. The establishment of the Namibia Association of CBNRM Support Organizations (NACSO) in 1999 has assisted 11 NGO support organizations and the University of Namibia to develop a number of key strategies to enhance national coordination, planning, and assistance to conservancies and CBNRM activities (see Figure 1). More recently (2002), the MET formed the CBNRM Sub-Division (CSD) to guide and coordinate MET/GRN assistance to conservancies.

The underpinning philosophy of NACSO is to maintain a small, cost-effective Secretariat to coordinate NGO support to the National CBNRM Program and serve as a liaison with relevant government agencies (predominantly, the Ministry of Environment & Tourism [MET]). A number of thematic NACSO working groups have been formed to oversee strategy development/implementation and facilitate creation and extension of national CBNRM support systems. In this regard, the three primary working groups; Business, Enterprise & Livelihoods (BEL WG), Institutional Development (IWG), and Natural Resource Management (NRWG) are aimed at supporting the three pillars of the CBNRM program - benefits generation, democratic governance and improved natural resources management, respectively.

4. CBNRM Achievements to date In a relatively short period of time the Namibia National CBNRM Program has produced an impressive array of national level impacts that have changed the livelihood landscape of rural Namibia. Such impacts include:

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Attitudinal Changes of Communal Area Residents – The colonial and apartheid eras produced a legacy of hostility towards wildlife, accentuated by rampant poaching.

The introduction of conservancies has radically altered this situation, demonstrating to communal residents that wildlife and affiliated tourism activities can be positive contributors to livelihoods. As a result, the attitude of community members towards wildlife and conservation organizations has distinctly shifted to the positive and poaching has declined sharply.

Recovery of Wildlife Populations – Community recognition of wildlife as a valuable resource has precipitated a number of positive activities (i.e., land-use planning, game introductions, reduced poaching, etc.) that are contributing to widespread recovery of wildlife populations. Massive recoveries of game have now been documented in the Kunene and Erongo regions of northwest Namibia, Caprivi, and Nyae Nyae areas.

Benefits Generation to CBNRM Participants – The CBNRM incentive-based policy environment, combined with recovering wildlife populations, is spearheading the generation of significant benefits. Since registration of the first conservancies in 1998, CBNRM benefits (cash and in-kind) have increased dramatically, skyrocketing from N$1,151,776 in 1998 to N$26,800,000 in 2006.

CBNRM Program Benefits 1994 - 2006

06

04

03

05

20

20

20

01

00

99

98

97

96

95

02

20

20

20

20

19

19

19

19

94 19

19

N$

32,000,000 28,000,000 24,000,000 20,000,000 16,000,000 12,000,000 8,000,000 4,000,000 0

Year Conservancy Non-Financial Benefits NR-based Household/Wage Income Conservancy / Enterprise Committee Income How can Ecotourism contribute to Poverty Reduction and Conservation Aims

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•2005 Net National Income Contribution of CBNRM was N$144 million •Cumulative contribution = N$530 million •Cumulative value of increased wildlife populations since 1990 = N$210 million Strengthened Governance – The mobilization of rural communities into conservancy committees is creating democratically-driven governance structures capable of advocating for the development needs of rural community needs. Presently 50 communities, representing approximately 230,000 people, have organized through conservancies, and an additional 30 conservancies (including approximately 70,000 more people) are forming. Should this larger number be realized, approximately 18% of Namibia’s population will be nationally represented through conservancies.

50 Conservancies gazetted to date Around 118,276 km2, representing 13 % of Namibia, now falls within communal area conservancies

Area (km2)

Area under Conservancies 140000 120000 100000 80000 60000 40000 20000 0

19

97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06

Years

Strengthened National Support Systems – Following 13 years of the program, there are now 13 NGOs supporting the sector, four MET directorates engaged in CBNRM, and CBNRM is widely recognized by other GRN ministries as a legitimate development approach.

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Leveraged Donor Support To CBNRM - The success of the CBNRM Program has resulted in a strong donor synergy. To date, close to N$120 million of additional donor funds have been leveraged in support of the National CBNRM Program.

Recognition as a rural development and conservation strategy – The national CBNRM Program and in particular communal area conservancies have been integrated into key national development planning strategies and documents, including the Namibia National Development Plan II (NDP II) and Vision 2030.

5. Strengths of Current “operating environment” There are a number of positive aspects of the current operating environment as follows: Policy - The policy environment is currently very positive; the existing Conservancy Legislation is in the process of review and will be strengthened to enhance conservancy rights. CBNRM as a development and conservation approach is now enshrined in all key national planning frameworks. In addition, a revised and more progressive tourism policy together with a concession policy are near completion.

These will further strengthen the linkage between local communities, natural resources and the development of tourism opportunities that will create income and employment.

Institutional – Co-operation between CBNRM partners has increased and improved with the emergence of regional tourism working groups in addition to working groups at a national level.

Technical – Good progress has been made towards developing a common vision and understanding of how conservancies can identify, develop and make operational potential tourism and natural resource based business opportunities. Overall, implementing partners are gradually beginning to understand the need for a more business and market-oriented approach to tourism enterprise development.

Number of People

People in registered Conservancies 250000 200000 150000 100000 50000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Year

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6. The Namibia CBNRM Program - Technical, Institutional, Economic, and Social Challenges.

The impacts of the National CBNRM Program have been significant and impressive, but the Program is still in its infancy and far from achieving its potential. There remain many technical, institutional, economic, and social hurdles. In this regard, some have characterized conservancies as First-Generation CBNRM, being heavily driven by autocratic committees and narrowly focused around the management and exploitation of wildlife and tourism resources. The National CBNRM Program seeks to transcend into Second-Generation CBNRM, which can be described as conservancies being: democratically directed, from the bottom-up, by an active and well-informed membership; business driven, with income-generating enterprises reflecting diversification beyond wildlife and tourism; and multiple-resource oriented, with conservancies being given the legal authority to manage and benefit from an expanded number of natural resources in an integrated manner. Should the National Program succeed in this transition, conservancies will be strengthened as rural, democratic institutions; and the livelihoods of their members will be enhanced through increased tangible (cash, meat, employment, etc.) and in-kind (improved environment, improved skills, empowerment, etc.) benefits. However, the following 10 challenges must be addressed for the National CBNRM Program to make this successful transition to Second-Generation CBNRM: Improvement of The Policy & Legislative Environment – There remains a need to: a) further strengthen conservancy ownership rights over game; b) provide conservancies with indisputable rights to commercial tourism; c) put in place legal mechanisms that allow conservancies to regulate access within the conservancy and land- and resource-uses within its boundaries; d) provide conservancies with the legal right to manage their full set of natural resources in a holistic, integrated fashion; and e) empower conservancies to collaborate and advocate for continued policy reform through the formation of national and/or regional conservancy association(s).

Institutional Strengthening of Conservancies – There is a need to strengthen communication, accountability, transparency, and participation within conservancies and to devolve decision-making to members or village sub-committees. Conservancy management also needs to adopt a more business-oriented professional approach.

Diversification of Income-Generating Enterprises and Activities Improvement of The Flow of Conservancy Benefits To Members Expansion Beyond Wildlife Mitigation of Human – Animal Conflict – Increased numbers of wildlife are bringing greater human-animal conflict, with increased predation of livestock taking place, higher incidences of crop-raiding occurring, and more risk of human endangerment.

There is an imperative need to develop effective conflict mitigation/compensation mechanisms or hostility towards wildlife may eventually undermine conservancies.

Strengthened National CBNRM Support Capacity - There is a need to develop more cost-effective and efficient support approaches to conservancies, including the

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development of appropriate CBNRM extension approaches and mechanisms to ensure long-term support exists for conservancies.

Strengthened Private Sector Involvement – Private sector plays a key incomegenerating role through joint venture partnerships (lodges and trophy hunting) with conservancies. They can also play a strong and positive role in training and capacitybuilding for CBNRM enterprises and conservancy operations.

Empowerment of Women – The program has had significant success in strengthening the roles and participation of rural women in conservancy activities and establishment of women in high-level management positions (i.e., NACOBTA Director, NACSO Secretariat, CBNRM Sub-Division Coordinator, etc.). However, female involvement and participation in the CBNRM Program remains disproportionately low, with this situation requiring continual attention to achieve gender equity.

Countering the HIV/AIDS Threat – Namibia’s high HIV/AIDS infection rate (22%) is still on the upward curve, and some regions are believed to already have infection rates that exceed 40%. HIV/AIDS represents a serious threat to the Namibia CBNRM Program. The pro-active introduction and implementation of HIV/AIDS Mitigation Policies and Actions at both the service provider and conservancy level are essential.

7. Tourism Related Challenges Whilst there are general challenges to the CBNRM program there are also more specific challenges facing the tourism sector in Namibia. In 2007, the following key challenges were identified within the Namibian Tourism Industry: Under-investment In The Protected Area Network Under Capitalization of The Tourism Sector Slowly Recovering Resource Base Barriers and Constraints To Tourism Expansion - There remain a number of barriers to private sector investment in the Namibia tourism sector. Many of Namibia’s competitors have stimulated tourism investments in their countries by providing tax breaks, investment incentives, access to tourism-friendly capitalization loans, subsidized training programs, establishment of tourism investment centres, etc. In contrast, the Namibia tourism sector is heavily taxed and a number of bureaucratic hurdles make tourism investments time-consuming and burdensome, especially on communal lands where insecurity around land tenure makes access to commercial loans very difficult. Furthermore, technical barriers (i.e., knowledge of tourism business practice) to previously disadvantaged Namibians have largely prevented tourism investments from the Black Economic Empowerment sector; Marketing - Namibia is a relatively new entrant into the global tourism arena, and as such is not a widely known travel destination to much of the world. Thus, there is an urgent need to strategically strengthen Namibia’s tourism product identity at an international level, improve product packaging, and strengthen the overall branding of Namibia and the various tourism products it has on offer; and

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Constraints To Tourism Skills Development - The development of hospitality skills in Namibia’s workforce has received little national support, which has led to a vast shortage of qualified staff to fill tourism positions in this rapidly growing industry.

8. Tourism Impact One of the central aims of the CBNRM programme is to improve the livelihoods of rural people through the sustainable use of natural resources. The sums of money now being earned in this way are considerable (almost N$ 27 million in 2006). Most importantly, these are 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 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$10.8 million was earned from these ventures during 2006, representing 40% 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. In these joint ventures, both partners are bringing something of value to the table. The conservancy brings the tourism development rights, a commitment to actively manage the natural resources (especially wildlife), and a desire and willingness to learn and become involved in the tourism industry. The investor brings capital, expertise in tourism and access to the market. The partnerships are structured in ways to maximise benefits to both parties.

At the end of 2006 there were 15 operational joint venture partnerships 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. This further demonstrates recognition by the private sector that conservancies offer value and are the legitimate rural partners for tourism development and the management of the natural resources upon which the future of the tourism sector depends. Since 1999, more than N$30 million has been generated for conservancy members from joint venture lodge agreements.

Other important sources of tourism income for conservancies in 2006 came from hunting - N$6.1m, campsites – N$3.75m and crafts – N$0.5m).

9. Development Approach: In developing conservancies and tourism enterprises, the following approach has been taken;

Participatory Tourism Planning - the development of community based Conservancy Tourism Plans, which are grounded through conservancies but involve

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a range of key stakeholders including government, traditional authorities and the private sector.

Working with legally recognised bodies. For the development of joint venture partnerships, where some kind of legal agreement is required it is important to work with legally recognised bodies such as conservancies.

Identify key tourism opportunities – within the tourism plans it is important to prioritise opportunities and select those that have most potential at any given time.

This will often vary due to changing market demands, but it is important to allow the market to determine which enterprises should be developed.

Business Feasibility – every tourism opportunity needs to be checked for business viability and this should be a key factor in determining the level of support provided.

Seek partnerships (expressions of interest, tender etc.) – in Namibia joint venture lodge developments have proven to be the most lucrative from the perspective of financial returns to the community through direct wages and “lease fees’ to the conservancy.

Or Use local management options – for smaller enterprises, it may be possible to develop local skills and capacity to the level required.

Example:

Torra Conservancy,Registered 1998 Area: 352,000 ha,Population: 1200 Livelihood: Livestock, mainly goats.

Cash income: < US$300 pa

Wilderness Safaris Namibia Product = “low impact, high income photographic safaris” Damaraland Camp 16 Bed up market lodge 25 full time staff (x 2 managers) Represents 40% of Torra Conservancy income.

Outsourced laundry, firewood & security.

Torra Conservancy - Damaraland Camp 100,000 Conservancy

80,000

Wages

60,000 US$ 40,000 20,000 0 1999 2000 2001 2002 2003 2004 2005 Year

10. Difficulties Facing the Sector The main difficulties facing the sector (community involvement in tourism) are as follows: Incomplete policy & lack of policy harmonisation.

Lack of understanding of tourism Lack of access to capital for product development Lack of Management Skills

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Low Literacy levels of Communities in the Rural Areas Limited assistance from Private Sector Operators & inability to connect with the tourism sector – access the market.

11. Long-Term Vision and Expected Project Lifetime The long-term vision is that the CBNRM support organizations are able to assist in the development of financially viable and institutionally effective conservancies. The achievement of financial independence will be accomplished by; promoting greater involvement of the private sector in conservancy enterprises and operations; building the capacity of NGO partners to raise additional operational funds; and assisting the MET/GRN to establish permanent, government-funded CBNRM extension support systems. The overall donor approach of implementing through local partners will foster self-reliance and generate increased internal Namibian capacity 12. Key Lessons Learned The key lessons learned in assisting conservancies to utilize tourism development for poverty alleviation in Namibia are as follows:

It is acknowledged that enterprise development in conservancies may be driven by a CBNRM (conservation) agenda but that this should not change the need to use business principles.

We should utilise a combination of both “market” & “development” approaches without compromising basic business principles. (support organisations should be aware of this).

We should use appropriate “tools” to establish market demand & business viability (involve private sector in analysis).

We need to develop conservancy (broader community) business & financial management capacity.

Encourage relationships & mentoring with private sector & business membership organisations (TASA, HAN, TAN etc.)

Narrower forms of management tend to be more successful than broad community management (personal profit is OK – encourage entrepreneurship).

Private Sector should be more involved but don’t know how to be. This involvement should be on the basis of providing the private sector with a commercial advantage and not relying on “charity”.

JV’s & partnerships when done properly, currently yield the greatest benefit (income & employment) Need explicit plans for “graduating” Community Based Tourism Enterprises into the mainstream & avoiding dependency (NGOs to “push up” and private sector Associations to “reach down” !).

Development Agencies need to be more business oriented.

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13. Future Expectations Over the next 5 years of the program there is expected to be rapid growth in JV lodges and tourism partnerships and a closer relationship with private sector through mentorship & Broad Based Black Economic Empowerment (Transformation Charter). In addition there needs to be more creative approaches to community involvement in tourism (e.g. shareholding in tourism assets, community equity) and an increased community (conservancy) capacity to understand and engage in business relationships. This will also assist conservancies to achieve diversification & intensification of enterprise development.

14. Conclusions The Namibian CBNRM program and communal area conservancies in particular are an ideal mechanism to promote poverty reduction and conservation because they: Bring new and potentially large sources of income to poor rural people Are excellent entry points for all forms of rural development & tourism partnerships because of the institutional mechanisms already in place Are excellent entry points for integrated land and natural resource management initiatives Promote good governance and democracy at local levels Offer entry points for capacity-building, empowerment and skills transfer Deliver real OUTCOMES to local and national development objectives.

[Note: This paper is a reflection of the current status of the Namibian National CBNRM Program and is presented on behalf of all colleagues and partner organisations]

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