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Project Profile #4

Cost-benefit analysis of encroachment bush removal in Namibia (2008-2009)

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Encroachment bush (Namibia)

Project Objective

C.A.R.E. Ltd. has been working with Dagmar Honsbein (an official from the Ministry of Finance, Namibia and a policy expert) and the Polytechnic of Windhoek, Namibia on a study on the cost-benefit analysis of removing encroachment bush from farmland in Namibia. The work was funded by the Namibian Agronomic Board. The overall objective of the work was to identify a variety of appropriate bush encroachment management practices, both current ones and promising new practices, based on a cost-benefit analysis assessment incorporating economic, ecological and social criteria.

Project Background

Bush encroachment has increased drastically over the last 30 years. The Bush Encroachment Research, Monitoring and Management Project, in 2004, estimated that some 10 million hectares of commercial farmland were infested with encroachment bush in 1970, whilst this figure had increased to 16 million hectares by 2004 in commercial areas. Bush infestation mainly occurs in the higher rainfall areas of the country, where cattle and beef production is dominant.

Project Summary

C.A.R.E. Ltd. carried out the cost-benefit analysis for a wide range of options, specifically including, the cost benefit analysis (CBA) and cash flow for:

From this, the subsequent value added options for the cleared invader bush were evaluated:

From the calculation of the NPVs under a range of circumstances, the following results were obtained:

Project Status

The work started in late 2008 was completed in June 2009. The results of the CBA will be used by the Namibian Agronomic Board to direct future policy in the utilisation of bush and the optimal ways of supporting clearance activities for increased livestock production. The work is to be published in late 2010/early 2011.