1. Grasslands as Natural Infrastructure in 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.

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

5. Scenarios of the two catchments • The land use practices and lack of proper management resulted in the degradation of the catchment areas 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

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

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.

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 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”

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 Thank you