Protecting East Africa’s natural capital: The cost of inaction
Thursday, April 14, 2022

Nature underpins every aspect of economic and human well-being. That’s why recent moves by the East African Community (EAC) and the six partner states to counteract environmental threats to the region are so encouraging. Their joint effort is in response to a landmark study of natural capital in four iconic transboundary landscapes.

The study found that natural capital in these landscapes provides US$11.3 billion in value annually, serving not only the 33 million people in surrounding communities, but also providing benefits to the region and the globe.

What is clear: in these landscapes, and in East Africa as a whole, we are losing natural capital at an alarming rate due to land use changes and resource over extraction. If we do not do two things—act now and act together across nations—the negative effects will overwhelm not only individuals but communities, businesses, and states in the coming years. 

Failing to protect Rwanda’s natural capital will be costly. The study looked ahead to 2050 and projected the increase in costs that will accompany the decrease in nature-based services if we fail to halt wildlife and habitat degradation. Fifteen percent of forest will be lost by 2050 if no action is taken to mitigate threats from over-extracting of resources. Leading to high levels of erosion, impacting both human safety and economy, reducing availability of forest resources, and compromising food security and nature-based livelihoods.

On the positive side, the study projected a US$5.3 million increase in tourism revenue for Rwanda if gorilla conservation efforts remain sustainably managed.

In the wetlands, over-extraction is also a key threat—with demand for papyrus estimated to increase by 84 percent and fish by 113 percent by 2050. Pollution is also a concern. The Kagera River is highly polluted with nutrients beyond the recommended level for aquatic life including high risk of bilharzia infections. This poses a risk to socio-economic development and quality of life and addressing this would boost the country’s income up to $400 million by 2030.

Nature-based solutions are the key to success. Rwanda is an essential part of any transboundary efforts to work with neighbors and harmonize protected area management plans as well as conservation enterprises; otherwise, there will be significant losses in jobs and livelihoods on both sides.

The government could consider working with the private sector to support enterprises to improve gorilla habitat and populations and to incorporate disaster risk reduction from climate hazards, through reforestation and climate smart agriculture.

Enterprise opportunities include tea, dairy, beekeeping and honey and wax production, woodlots to support timber and non-timber forest product needs, mangoes, mushroom collecting, eco-tourism, and payment for ecosystem services.

Such enterprises may be based on the Livelihood Funds model around Mount Elgon in Kenya that links reforestation and dairy value chain, but may also tap into international carbon markets that reward communities financially for storing carbon in forests.

Rwanda has an opportunity to work with Burundi and Tanzania to develop a program for sustainable use of wetland resources, coupled with private sector investment in sustainable aquaculture funded as a low-carbon and climate resilient development strategy.

Some options for consideration include strengthening and scaling up cooperative fisheries for sustainable small-scale fishing initiatives (as currently being undertaken on Lake Gishanda by the Akagera National Park) and linking this to fisheries programs in Burundi and Tanzania.

Efforts could tap into the European Union-EAC TRUE FISH project that connects regional aquaculture companies to investors and funding sources in order to develop eco-friendly fish processing that increases enterprise options for small-scale fishing.

Rwanda could also support community-based natural resource organizations in eco- and cultural tourism by developing handicraft workshops; tapping into rich biodiversity and cultures through bird watching, recreational fishing, village cultural walks; and developing camping facilities and other tourism infrastructure (camps and lodges), like the Bwindi Impenetrable Forest Conservation Trust model in Buhoma, Uganda.

Nature does not adhere to political or economic boundaries. Across states and sectors, we share a mutual dependence on the health of our transboundary forests, wetlands, savannas, and plains. That’s why we must work together to protect what we have and restore what is degraded. Download the study today.

You can access the study, "Protecting East Africa’s Natural Capital: The Cost of Inaction” at https://www.climatelinks.org/resources/cost-of-inaction. Contact: noguge@enviroincentives.com

The writer is Chief of Party, USAID Economics of Natural Capital in East Africa Projectwhich aims to equip public and private sector leaders with evidence on nature’s economic value to improve decisions around conservation and sustainable development