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Presentation to the User-Producer Conference: Water
Accounting for Integrated Water Resource Management

Water Accounts in South Africa

Anemé Malan
Statistics South Africa

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1

Water – May 06
Structure of presentation

• Background
• SA’s water policy
• Water resource accounts in SA
• Monetary analysis
• Way forward
• Comparison between countries

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2

Water – May 06
Background (1)

Water management areas of SA

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3

Water – May 06
Background (2)
Some figures
•
•
•
•
•

Average rainfall: 500 mm/annum (= 612 billion m 3);
Natural Mean Annual Runoff: 49 billion m 3;
Dam Storage Capacity: 32 billion m3;
Reserved for Ecological River Use: 9,5 billion m 3;
1:50 Yield: 13,2 billion m3;
– Surface water’s contribution to yield: 78%
– Ground water’s contribution to yield: 8%
– Usable Return Flows: 14%

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4

Water – May 06
Background (3)

Yield

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5

Water – May 06
Background (4)

Development imperatives versus Water Scarcity
• Rural (domestic & stock watering);
• Urban (Direct (domestic) & Indirect (industrial, commercial,
public));
• Mining & Bulk (not via municipalities);
• Power generation;
• Irrigation;
• Afforestation;
• Transfers;

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6

Water – May 06
SA’s water policy (1)
National Water Policy (NWP)
• Adopted by Cabinet in 1997;
• 3 fundamental objectives to manage water resources
a) Equitable access to water
b) Sustainable use of water
c) Efficient and effective water use

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7

Water – May 06
SA’s water policy (2)
National Water Act (NWA) of SA 1998
• Principal legal instrument for implementing objectives of NWP
• Key provisions and fundamental changes include:
a) Transforming legal access and rights to water;
b) Ensuring provision of water for basic human need and
protection of aquatic ecosystems;
c) Decentralising water management through more enabling
institutions;
d) Pricing for financial and environmental sustainability, ecn.
efficiency and social equity;
e) Refocus on water conservation and demand management;
f) NWRS of 2004;
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8

Water – May 06
Water resource accounts in SA (1)

• Towards WRA for RSA 1991-1998 (RANESA;
CSIR; DEAT/Stats SA/DWAF/WRC/AG);

• Upper Vaal River Account (Stats SA; Conningarth);
• Accounts for 2000 (Stats SA);
• Draft updated accounts for 1995 and 2000
(Stats SA; RANESA; CIC);

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9

Water – May 06
Water resource accounts in SA (2)

• Constructed Flow Accounts
 1st step: I-O matrix for 20 areas for 1995 and 2000.
Used SEEA guidelines consistent with NWA & NWRS
Advantages:
1) Provides non-econ with easier interpretation of
water flows in econ framework
2) Prevent double countingduring interpretation &
application of complex hydrological numbers
 2nd step: Some macro-ecn adjustments to national I-O
table to ensure consitency with SEEA guidelines.
 3rd step: National I-O WRA converted to the adjusted
UN SUT-format.
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10

Water – May 06
Water resource accounts in SA (3)

• Some differences
 Yield instead of MAR
 Environmental reserve
 Classifications – ISIC vs NWRS (e.g. Rural
development and stream flow reduction unique
to SA?)
• Stock accounts were not compiled - this is not
useful for SA water managers
• Various types of analyses were done (e.g.
Pathways - and spatial analyses )
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11

Water – May 06
Water resource accounts in SA (3)

Water flow account structure: I-O framework
Environment Distributor
s

Distributors

Use

Environment

Production Total

Supply

Production
Total

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12

Water – May 06
Water resource accounts in SA (4)
Environment
• Atmosphere and sea
• Natural MAR
• Surface water yield
• Ground water
• Soil water
• Ecological reserve

Production (ISIC?)
• Agriculture

Link with DWAF

Dry land and irrigation
Livestock
Plantation

Irrigation
Rural (stock watering)
Afforastation

• Mining

Mining

• Electricity

Power generation

•
Distributors
•
• DWAF (total yield)
• Irrigation boards
•
• Water boards
• Municipalities
• ROW and other WMAs
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Other Bulk industrial Bulk
Other commercial
and industrial
Domestic
Urban
Rural

Urban (indirect (industrial,
Commercial, public))
Urban (direct (domestic))
Rural domestic

13

Water – May 06
Monetary analysis

Using other data sources e.g. SUT, NA
• Expenditure on water by ecn sector;
• Indicators of income & empl supported
by water use in production;
• Tarrifs on water use;
• Expenditure and subsidies on water by
distribution sectors;

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14

Water – May 06
Way forward

• Hydrologists and Economists;
• Construction of monetary accounts: Water
pricing is important for water demand
management;
• Water quality, specifically the impact of water
quality on the water yield (volume);
• Policy;

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15

Water – May 06
Comparison between countries (1)

Water use in Namibia, South Africa, Botswana in 1996
Namibia

South
Africa

Botswana

Total water use
(million m3)

256

14 830

142

Per capita water use
(m3per person)

157

365

95

69

98

49

Per capita water use
except agriculture (m3
per capita)
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16

Water – May 06
Comparison between countries (2)
Water use by sector in Namibia, South Africa, Botswana, 1996 (%)

Namibia

South
Africa

Botswana

Agriculture

58

73

48

Mining

10

3

11

Manufacturing

2

1

1

Services,Trade, Govt.

3

9

9

29

13

31

Households
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17

Water – May 06
Comparison between countries (3)
National income generated per m3 of water used by sector,
1996 (pula/m3 of water used)
Namibia South Africa
Botswana
Agriculture

6

2

8

54

61

420

Manufacturing

189

98

437

Services, trade,
Govt.

542

155

724

GDP per m3 of
water input

45

25

124

108

87

158

Mining

GDP per m3 of
water input (excl.
agricul.)
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18

Water – May 06
Thank you

Anemé Malan
anemem@statssa.gov.za
www.statssa.gov.za

Preferred supplier of quality statistics

19

Water – May 06

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Water accounting sa

  • 1. Presentation to the User-Producer Conference: Water Accounting for Integrated Water Resource Management Water Accounts in South Africa Anemé Malan Statistics South Africa Preferred supplier of quality statistics 1 Water – May 06
  • 2. Structure of presentation • Background • SA’s water policy • Water resource accounts in SA • Monetary analysis • Way forward • Comparison between countries Preferred supplier of quality statistics 2 Water – May 06
  • 3. Background (1) Water management areas of SA Preferred supplier of quality statistics 3 Water – May 06
  • 4. Background (2) Some figures • • • • • Average rainfall: 500 mm/annum (= 612 billion m 3); Natural Mean Annual Runoff: 49 billion m 3; Dam Storage Capacity: 32 billion m3; Reserved for Ecological River Use: 9,5 billion m 3; 1:50 Yield: 13,2 billion m3; – Surface water’s contribution to yield: 78% – Ground water’s contribution to yield: 8% – Usable Return Flows: 14% Preferred supplier of quality statistics 4 Water – May 06
  • 5. Background (3) Yield Preferred supplier of quality statistics 5 Water – May 06
  • 6. Background (4) Development imperatives versus Water Scarcity • Rural (domestic & stock watering); • Urban (Direct (domestic) & Indirect (industrial, commercial, public)); • Mining & Bulk (not via municipalities); • Power generation; • Irrigation; • Afforestation; • Transfers; Preferred supplier of quality statistics 6 Water – May 06
  • 7. SA’s water policy (1) National Water Policy (NWP) • Adopted by Cabinet in 1997; • 3 fundamental objectives to manage water resources a) Equitable access to water b) Sustainable use of water c) Efficient and effective water use Preferred supplier of quality statistics 7 Water – May 06
  • 8. SA’s water policy (2) National Water Act (NWA) of SA 1998 • Principal legal instrument for implementing objectives of NWP • Key provisions and fundamental changes include: a) Transforming legal access and rights to water; b) Ensuring provision of water for basic human need and protection of aquatic ecosystems; c) Decentralising water management through more enabling institutions; d) Pricing for financial and environmental sustainability, ecn. efficiency and social equity; e) Refocus on water conservation and demand management; f) NWRS of 2004; Preferred supplier of quality statistics 8 Water – May 06
  • 9. Water resource accounts in SA (1) • Towards WRA for RSA 1991-1998 (RANESA; CSIR; DEAT/Stats SA/DWAF/WRC/AG); • Upper Vaal River Account (Stats SA; Conningarth); • Accounts for 2000 (Stats SA); • Draft updated accounts for 1995 and 2000 (Stats SA; RANESA; CIC); Preferred supplier of quality statistics 9 Water – May 06
  • 10. Water resource accounts in SA (2) • Constructed Flow Accounts  1st step: I-O matrix for 20 areas for 1995 and 2000. Used SEEA guidelines consistent with NWA & NWRS Advantages: 1) Provides non-econ with easier interpretation of water flows in econ framework 2) Prevent double countingduring interpretation & application of complex hydrological numbers  2nd step: Some macro-ecn adjustments to national I-O table to ensure consitency with SEEA guidelines.  3rd step: National I-O WRA converted to the adjusted UN SUT-format. Preferred supplier of quality statistics 10 Water – May 06
  • 11. Water resource accounts in SA (3) • Some differences  Yield instead of MAR  Environmental reserve  Classifications – ISIC vs NWRS (e.g. Rural development and stream flow reduction unique to SA?) • Stock accounts were not compiled - this is not useful for SA water managers • Various types of analyses were done (e.g. Pathways - and spatial analyses ) Preferred supplier of quality statistics 11 Water – May 06
  • 12. Water resource accounts in SA (3) Water flow account structure: I-O framework Environment Distributor s Distributors Use Environment Production Total Supply Production Total Preferred supplier of quality statistics 12 Water – May 06
  • 13. Water resource accounts in SA (4) Environment • Atmosphere and sea • Natural MAR • Surface water yield • Ground water • Soil water • Ecological reserve Production (ISIC?) • Agriculture Link with DWAF Dry land and irrigation Livestock Plantation Irrigation Rural (stock watering) Afforastation • Mining Mining • Electricity Power generation • Distributors • • DWAF (total yield) • Irrigation boards • • Water boards • Municipalities • ROW and other WMAs Preferred supplier of quality statistics Other Bulk industrial Bulk Other commercial and industrial Domestic Urban Rural Urban (indirect (industrial, Commercial, public)) Urban (direct (domestic)) Rural domestic 13 Water – May 06
  • 14. Monetary analysis Using other data sources e.g. SUT, NA • Expenditure on water by ecn sector; • Indicators of income & empl supported by water use in production; • Tarrifs on water use; • Expenditure and subsidies on water by distribution sectors; Preferred supplier of quality statistics 14 Water – May 06
  • 15. Way forward • Hydrologists and Economists; • Construction of monetary accounts: Water pricing is important for water demand management; • Water quality, specifically the impact of water quality on the water yield (volume); • Policy; Preferred supplier of quality statistics 15 Water – May 06
  • 16. Comparison between countries (1) Water use in Namibia, South Africa, Botswana in 1996 Namibia South Africa Botswana Total water use (million m3) 256 14 830 142 Per capita water use (m3per person) 157 365 95 69 98 49 Per capita water use except agriculture (m3 per capita) Preferred supplier of quality statistics 16 Water – May 06
  • 17. Comparison between countries (2) Water use by sector in Namibia, South Africa, Botswana, 1996 (%) Namibia South Africa Botswana Agriculture 58 73 48 Mining 10 3 11 Manufacturing 2 1 1 Services,Trade, Govt. 3 9 9 29 13 31 Households Preferred supplier of quality statistics 17 Water – May 06
  • 18. Comparison between countries (3) National income generated per m3 of water used by sector, 1996 (pula/m3 of water used) Namibia South Africa Botswana Agriculture 6 2 8 54 61 420 Manufacturing 189 98 437 Services, trade, Govt. 542 155 724 GDP per m3 of water input 45 25 124 108 87 158 Mining GDP per m3 of water input (excl. agricul.) Preferred supplier of quality statistics 18 Water – May 06
  • 19. Thank you Anemé Malan anemem@statssa.gov.za www.statssa.gov.za Preferred supplier of quality statistics 19 Water – May 06

Editor's Notes

  1. a) Transforming legal access and rights to water: Under the new NWA, ownership of water resources has been nationalized (water considered a national asset) and consequently all private rights to water were repealed. b) Ensuring provision of water for basic human need and protection of aquatic ecosystems RESERVE ­ nie in SIC c) Decentralizing water management through more enabling institutions (WMA – CMA; rede vir 20 acc) d) Pricing for financial and environmental sustainability, economic efficiency and social equity (verlede landbou subsidie, skaarsheid nie meer bekostig nie, DWAF het ‘n pricing policy – geld kom in kostes meer as inkomstes – besig met nuwe pricing policy, publiseer in 2006) e) Refocus on water conservation and demand management (demand management  f) The National Water Resource Strategy (NWRS) (in 2004, act _ strategie, strategie DWAF gekyk na demand/supply – ons acc gebaseer op lg) In pursuit of the above objectives of the NWP and NWA, DWAF has developed a National Water Resource Strategy (NWRS), which sets out objectives, strategies and procedures for efficient, equitable and sustainable management of water resources in the country (DWAF, 2004).  
  2. The water accounts have been used to compare water use in Botswana, Namibia and South Africa in 1996 by end user, the socio-economic benefits of water under the present allocation by sector, and the extent of water subsidies by sector. The next 3 slides show these comparisons. This information is currently being updated. This information has been brought to the table when discussing quotas of water allocation among the three countries. In particular, Botswana was able to obtain a larger share of water in the negotiations of water allocation because of its high efficiency in water use both by agriculture as well as by other economic sectors and households. This slide compares water use in the 3 countries. South Africa is the major water user in the region, which is not surprising given its much larger population and economy. However, after adjusting water use for population, South Africa still has the highest water use at 365 m3per person, more than twice that of Namibia and more than 3 times that of Botswana. Agricultural use accounts for 73% of all water use in South Africa, but only 48% in Botswana and 48% in Namibia. Per capita water use excluding agriculture brings the water use figures closer together for the 3 countries, even though South Africa still uses more than twice water than Botswana.
  3. This slide show the comparison of the sectoral water use in the 3 countries. While Namibia and Botswana sectoral water use have a similar structure, South Africa shows a larger share of water use in agriculture and smaller in Mining and households.
  4. There are various indicators of the socio-economic benefits of water use, such as sectoral value added per m3 of water input (indicator of water efficiency). Botswana and Namibia’s lower per capita water use is reflected in systematically higher economic value-added per m3 of water input. For the whole economy, Botswana’s GDP per m3 of water used is nearly 5 times larger than that of South Africa. This gap is reduced considerable when agricultural water use is excluded. In addition, Botswana generates higher value added per m3 of water used than the other 2 countries in all sectors. This is the combination of 2 factors: difference in water efficiency and different choices of economic activities. The high efficiency of water use in Botswana is the result of a system of tariffs that have been put in place to recover the cost of production and distribution of water.