NCC Environmental Services
REAL GROWTH FOR PEOPLE, PLANET AND BUSINESS
www.ncc-group.co.za
Copyright © 2014 NCC Environmental Services and CapeNature
Any other use or distribution of this presentation, whether in whole or in part,
is subject to written approval by both NCC Environmental Services and CapeNature.
Project Introduction
An Investment Business Case of the income
generation potential of protected areas
in the Western Cape
Why is this important?
CapeNature knows that there is…
• an ongoing net loss of
biodiversity
• increasing threats to ecosystems
• clear targets for biodiversity and
PA’s
• increasing PA management costs
• and…. Government budgets for PA
expansion and
management are
decreasing.
Why is this important?
For PA managers this results in…
Why is this important?
CapeNature has a defined pot of
funding.
Why is this important?
Unfortunately this pot is…
ALMOST EMPTY :o(
Why is this important?
and we would like it to be…
NICE AND FULL :o)
Why is this important?
Currently CapeNature only has a
few income ‘streams’…
a decreasing
treasury
budget
tourism revenue
project funding
for specific
activities
We therefore need to…
Fill the pot through new income
streams that…
• build on international success
stories
• look at new and innovative
opportunities
• leverage the unique values of our
resources
• achieve broader socio-economic
gains
Hence this project to…
Develop an Investment
Business Case of the
income generation
potential of protected
areas in the Western Cape
Chain of funding
Western Cape Government
The Green Economy Initiative
Environment Affairs and
Development Planning
Provincial Green Economy Project
CapeNature
Investment Business Case of the
income generation potential of
protected areas in the Western Cape
Provincial Context
Western Cape Government and
DEA-DP
DEA-DP and the Western Cape
government as a whole, including
Treasury, is supportive of the drive
to identify and initiate income
generating opportunities to cover
budgetary shortfalls for the
management of protected areas.
The mandate for this project flows
from the WC Green Economy
Project Organisation
Where does the project fit inside CapeNature
Marketing and Eco-Tourism
Public Private Partnerships, Green
Economy & Income Generation
CapeNature: Green Economy
Project Team
Mahbobah Jacobs
Lee-Xavier Schoonraad
PROJECT STEERING COMMITTEE
External Advisory Committee
Marlene Laros (DEADP)
Albert Ackhurst (DEADP)
Helen Davies (CoCT)
Julia Wood (CoCT)
Lauren Hermanus (DEADP)
Lebeequa Schuurman (DEDAT)
Karen Shippy (DEADP)
Kobi Brand (DEADP)
Janine Daries (DEDAT)
Charlene Mouton (DEDAT)
Cabral Wicht (DoTP
Goodwill Dingaan (DEDAT)
Internal Advisory Committee
Dr Razeena Omar
Sandy Floris
Wilfred Williams
Morne Magerman
Pierre De Villiers
Meral Hey
Melikhaya Pantsi
Marietjie Engelbrecht
Ben van Staden
Gail Cleaver
Jennifer Gouza (TBR)
Project Aims
Overarching project objectives
• Determine the scope and level of
income generation potential through
data collection.
• Focus on private sector investment
and employment creation.
• Use the project outcomes as the
basis for sound strategic decisions
and policy development to
facilitate sustainable income
generation in and around PA’s in
the WC.
Project Aims
Overarching project objectives
• To conduct detailed business
planning for a limited number of
viable high ROI initiatives.
• To unlock investment for
initiatives chosen for
implementation.
• To support the initial
implementation of a significant new
income stream
Three Phased Project
Phase One
Awareness, Engagement, Matrix, TOR’s
Phase Two
Develop and apply evaluation criteria
Engage experts on the top % of
opportunities
Select 2/3 opp. for full business
planning
Include an investment strategy
Phase Three
Provide start-up support to CN for 1
or 2 of the big income generation
opportunities
Phase Activity Detail
Phase 1
To raise awareness in CN about
sustainable financing of PA’s…
and to have thoroughly engaged with
key internal and external
stakeholders…
in order to populate a matrix with
data on all relevant potential
income streams…
so as to be able to eliminate nonviable opportunities…
and draft terms of reference for the
appointment of consultants to
conduct further detailed viability
studies and business planning in
Project Aims
Phase 2(a)
To engage further with experts in
requisite fields to gather more
detailed data for capture in the
‘income generation matrix’ in order
to…
apply the selected evaluation
criteria to identify the top 10% of
income generating opportunities for
which…
a further in-depth study of the
financial viability will be
conducted in order to…
select 2/3 of the most viable
income generation initiatives for
Project Aims
Phase 2(b)
To produce full business plans for
the top 2/3 income generating
initiatives that …
identify the infrastructure,
capacity and operational
requirements of the income
generation initiative and…
further identify the criteria and
opportunities for investment that
will support the self-sustainable
operation of the income generating
initiatives.
To select which income generation
Project Aims
Phase 3
To provide support to CapeNature
through the ‘start-up phase’ of the
income generation business/es
selected for launch
in the form of:
- Organisational change management;
- Monitoring personnel performance
and identifying capacity gaps and
recommending capacity building
interventions;
- Monitoring adherence to the
business plan;
- Supporting investor relationships;
- Facilitating further engagement
with external specialists.
A definition
Sustainable financing
for
Protected Areas is the capacity to
secure diverse, stable and long-term
financial resources, and to allocate
them in a timely manner and in an
appropriate form, to cover the full
costs (both direct and indirect) of
PAs…
and to ensure that PAs are managed
effectively and efficiently with
respect to biodiversity conservation
Project Activities
Phase 1
• To raise awareness amongst CN staff
about the sustainable finance of
PA’s through presentations and the
facilitation of discussions at CN
meetings.
• To review relevant documentation
about sustainable PA financing and
translate the insights gained into
the design of an ‘income generation
matrix’
• To engage with key internal and
external knowledge holders for the
purpose of gathering data for the
Project activities
Phase 1 (cont.)
• To engage the PSC through update
emails and report back meetings in
order to keep the PSC informed of
project progress and to
collectively agree on solutions for
any challenges that may arise.
• Draft the Phase II ToR’s.
• Produce a Phase One closure report
that provides details of:
- activities and outcomes;
- explanations for matrix design
referencing stakeholder input
and/or research;
Activity Plan & Timeline
OCT
NOV
DEC
JAN
FEB
Project Inception
Round 1 CN Staff Engagement
Internal & External Interviews
Themed Workshops
Mid Dec – Draft
Matrix produced
Mid Jan – Mid Feb: 2nd round CN Staff
Engagement
Mid+ Jan – Final
Matrix
Mid+ Feb – Final
TOR’s
Final Report
Submitted
Getting back to that pot…
… and how CapeNature is going
to fill it.
from different
funding ‘sources’.
through various
income ‘streams’…
the pot needs
to be filled…
Understanding funding sources
(in ‘conservation speak’)
their
income
stream
is
Slow and steady
• Annual treasury
budget
• Capitalised trust
funds
• Sustainable
harvesting
Understanding funding sources
their
income
stream
is
All or nothing
• Donor Project Funding
• Funding from Gov. Programmes
• Etc.
(flash floods can have negative
consequences)
Understanding funding sources
their
income
stream
is
Fluctuating yet significant &
sustained
• Tourism
• Payment for Ecosystem Goods and Services
• Renewable Energy
• Etc…
We need diverse income streams…
…to keep our pot full.
There are other ways to look at income
streams…
IUCN Categories
Funding
Securing and administering external
donor and government funding
Unlocking investment
Developing income generating financial
instruments
User pays
Charging market-based fees for
Protected Area Goods and Services
IUCN PA Financing
Funding
Securing and administering external
donor and Government funding
• Government budgets
• Domestic government funding
• Fundraising and sponsorships
• Project funding
IUCN PA Financing
Unlocking investment
Developing income generating financial
instruments
• Aggregated offsets
• Renewable Energy
• Private sector investment
• Value added services
IUCN PA Financing
User pays
Charging market-based fees for Protected
Area Goods and Services
• Tourism
• Natural resource utilization
• Payment for Ecosystem Goods and
Services
• Leveraging property ownership
Tool for capturing insights
The ‘Income Generation Matrix’
• A spreadsheet to capture insights
from interviews and research
• To logically collate insights to
aid decision making
• Weighted averages for evaluation
criteria to identify priority
opportunities.
• To support awareness raising and
engagement
Tool for capturing insights
A shared responsibility
To unlock funding, investment and
income generation opportunities,
CapeNature staff need to…
increase awareness and
understanding of the value of
Ecosystem Goods and Services
across all sectors.
A shared responsibility
To unlock funding, investment and
income generation opportunities,
CapeNature staff need to…
learn think like an entrepreneur
and be open to new ways of
looking at their organisation to
see commercial opportunities.
A shared responsibility
To unlock funding, investment and
income generation opportunities,
CapeNature staff need to…
not outsource key functions in a
value chain to commercial
partners who then take the lions
share of income.
Thanks
Questions and Comments…
Enquiries: Andrew
Purnell - andrewp@ncc-group.co.za
Farha Domingo - farhad@ncc-group.co.za
Send your input to:
021 702 2884
capenature@ncc-group.co.za
www.ncc-group.co.za