1. Grasslands as Natural Infrastructure in South Africa Stanley Liphadzi, PhD Water Research Commission South Africa Stanley Liphadzi, PhD Water Research Commission South Africa

2. Water Security “An efficient way to invest in water security is to protect it at its source through prudent land management” The Maloti Drakensburg mountains are the most strategic water resource in the country and region. The catchments contribute to a number of major rivers on South African side and Lesotho. “An efficient way to invest in water security is to protect it at its source through prudent land management” The Maloti Drakensburg mountains are the most strategic water resource in the country and region. The catchments contribute to a number of major rivers on South African side and Lesotho.

3. A water scarce country It is economically justifiable to invest in water – a limited resource It is economically justifiable to invest in water – a limited resource Precipitation Evaporation

4. Roles of the Grasslands Rainfall infiltrations, and thus: – Reduce Stormflows – Increase Baseflows – Reduce erosions Carbon sequestration Biodiversity, thus : – Increase tourism, job opportunities, wealth creation, etc Rainfall infiltrations, and thus: – Reduce Stormflows – Increase Baseflows – Reduce erosions Carbon sequestration Biodiversity, thus : – Increase tourism, job opportunities, wealth creation, etc

5. Scenarios of the two catchments Upper Thukela less degraded upper quinaries The middle and lower quinaries were degraded due to: – Overgrazing – Winter wild fires Upper Thukela less degraded upper quinaries The middle and lower quinaries were degraded due to: – Overgrazing – Winter wild fires Upper Umzimvubu All quinaries were extremely degraded; – Overgrazing – Winter wild fires Upper Umzimvubu All quinaries were extremely degraded; – Overgrazing – Winter wild fires The land use practices and lack of proper management resulted in the degradation of the catchment areas

6. Legal mandate for a Trade System There is a legislation supporting DWAF or other designated suppliers to charge Water Users for the enhancement of water services. There is a legislation supporting DWAF or other designated suppliers to charge Water Users for the enhancement of water services. DWAF Water Pricing Strategy – Water users can be charged for resources management (interventions) DWAF Water Pricing Strategy – Water users can be charged for resources management (interventions)

7. AIMS To determine if it’s viable and sustainable for the recipients of the benefits from grasslands to pay or compensate land owners/users for their stewardship role. How to cost action and Value benefits associated with management. To determine if it’s viable and sustainable for the recipients of the benefits from grasslands to pay or compensate land owners/users for their stewardship role. How to cost action and Value benefits associated with management.

8. Tools and Instruments Hydrological Modeling of Ecosystem Services SUPPLY Effect of land use and management on the water services from Ecosystems: – Baseflows – Streamflows – Stormflows – Sediments yield, etc Assumption is : services are owned by land owners Hydrological Modeling of Ecosystem Services SUPPLY Effect of land use and management on the water services from Ecosystems: – Baseflows – Streamflows – Stormflows – Sediments yield, etc Assumption is : services are owned by land owners Economic modeling of Ecosystem Services TRADE What are COSTS of change in land use? – Restoration costs – Management costs What is the Economic VALUE OF THE BENEFITS of such change? Unit Reference Values (URVs) to determine economic feasibility of a project

9. Output

10. Key issues Implementation of PES is possible in South Africa Working for Water and Working for Wetlands programmes have proved that. Strong Partnership and collaboration between government depts, land owners, NGOs, Local authorities, and other users (beneficiaries) are important. Proper governance structure is needed. Address the triple bottom line (social justice, ecological sustainability, and economical feasibility); Avoid “one size -fit –all” Implementation of PES is possible in South Africa Working for Water and Working for Wetlands programmes have proved that. Strong Partnership and collaboration between government depts, land owners, NGOs, Local authorities, and other users (beneficiaries) are important. Proper governance structure is needed. Address the triple bottom line (social justice, ecological sustainability, and economical feasibility); Avoid “one size -fit –all”

11. Acknowledgement Mander, M and co- authors of the report : INR, UKZN. John Dini – Working for Wetlands / W for Water: SANBI Water Research Commission of South Africa Session Organizers Mander, M and co- authors of the report : INR, UKZN. John Dini – Working for Wetlands / W for Water: SANBI Water Research Commission of South Africa Session Organizers Thank you