economic impact of water scarcity in south africa

Worst affected are KwaZulu-Natal, the Free State, Limpopo, North West and the Northern Cape, where farmers growing white maize, yellow maize, soya beans and sunflowers have incurred major losses. countries, especially South Africa. According to Statistics South Africa, Eskom produces approximately 95% of South Africa's electricity. Johannesburg, South Africa May 14, 2019 IFC, a member of the World Bank Group and Switzerland's State Secretariat for Economic Affairs (SECO), today launched a program aimed at addressing water scarcity in South Africa's agribusiness sector. South Africa is currently overexploiting its renewable water resources. A hole of $26trn will open up between 2010 and 2030, estimates the World Economic Forum, a think-tank. Unless urgent action is taken, South Africa's looming water crisis will prove far more devastating than the power crisis, potentially crippling the economy and costing lives, noted Eric Bruggeman, CEO of the South African Capital Equipment Export Council (SACEEC), which endorses IFAT. Food price spikes caused by droughts can inflame latent conflicts and drive migration. country as a whole. This is especially vital considering South Africa's worsening water scarcity. The social and economic effects caused by a lack of clean water are often the highest priorities of African communities when they speak of their own development. Of an estimated 800 million people who live in sub-Saharan Africa, 300 million live in a water stressed environment. Among the economic implications of water scarcity is the impact on businesses worldwide leading to higher operating costs and staying competitive. . Table 3 shows the current electricity production figures for South Africa. Challenges and lessons A continuing challenge is the balance between the scheme's environmental and socioeconomic goals. A year on, the South African city's parched dams are now over 80% full. by . The main cause of growing water scarcity is the growing demand resulting from population increase. The purpose of the document is to: (1) review past studies on the economic impacts of drought in South Africa ( SA) by economic sectors; (2) outline the approaches used assess the . Impacts of water scarcity on Africa Water scarcity has resulted in a wide range of impacts, from health, agricultural, conflicts . Water scarcity is also increasing in South Asia. Climate change risks for run-off and irrigation demand vary significantly across South Africa, with some regions expected to experience increased drying and others flooding Smaller impacts on water resources by 2050 are expected if global emissions are mitigated Even under strong mitigation policies areas such as the Western Cape catchments, and regions with smaller less well integrated water . As South Africa's economy grows and the population continues to rise, the demand for water increases among agriculture, mining, manufacturing industries, domestic, and environmental uses. The Water Project provides access to clean, safe and reliable water across sub-Saharan Africa. People might have to resort to drinking low-quality water which can be detrimental to their health. Declining farming profitability and water scarcity (drought, declin ing rainfall or overdemand for water) has left South Africa with less than twothirds of the number of farms it had in the early 1990s. They spend 200 million hours per day fetching water (UN Water, 2018) Some Working for Water sites have been selected for political or economic reasons, rather than ecological impact. The mandate of the Department of Water and Sanitation (DWS), as set out in the National Water Act of 1998 and the Water Services Act of 1997, is to ensure . The long-term impact of water scarcity varies from one sector to another, with. The United Kingdom signed a similar agreement last year that will also impact U.S. exports. in: Water Scarcity and Drought - A Priority of the Portuguese Presidency, Volume 1, p. 62-68. 663 million people rely on unimproved sources, including 159 million dependent on surface water. According to ESI Africa, "South Africa is approaching physical water scarcity in 2025 where they are expected to experience a water deficit of 17 percent by 2030, and climate change will worsen the situation." This article will look into the water challenges South Africa faces and whether we can avoid Africa's water crisis. Bruggeman highlighted that: "The majority of our dams . Attempts by government departments to involve the mining companies in the rehabilitation of the areas impacted by mining activities have been frustrated because of the mine companies' refusal to accept . In order for South African host cities to meet the Green Goal target of a 25% reduc- tion of water usage within the stadiums (LOC, 2008b), focus areas for improvement included: The construction or retrotting of venues with water efcient ttings Systems for the use of harvested rainwater Sustainable landscaping and irrigation practices. Globally, at least 1.8 billion people use a drinking-water source contaminated with faeces. Eskom has already connected 32 projects totalling 1.6 GW, but it could become increasingly difficult and expensive to integrate IPPs. The. In many instances the lost farms have been changed to other land uses, or consolidated into larger farming units to achieve effective The UN Environment Program (UNEP) compares water scarcity and quality today with a projection for the future: Currently, access to safe water in sub-Saharan Africa is worse than any other area on . Other cities like Pretoria, Durban, and Gauteng are also facing a severe shortage of water. From that the group has been able to highlight the complex web of issues contributing to water scarcity in a warming world, both in Jordan and far beyond. Meanwhile, much of the country's water infrastructure is in disrepair and dam levels are dangerously low. The causes and impact of water shortage on the households of Ga-Kgapane Township in the Limpopo Province By ELLIOT MASOTO MACHETHE RESEARCH MINI-DISSERTATION Submitted in partial fulfillment of the requirements for the degree of MASTER OF DEVELOPMENT At the Turfloop Graduate School of Leadership University of Limpopo, South Africa The World Health Organization has shown this in economic terms: for every $1 invested in water and sanitation, there is an economic return of between $3 and $34! The World Health Organization reports that every $1 investment made into clean water efforts leads to $3-4 dollars generated in regional economies [3] . 88% of SA households have access to water Statistics South Africa 's 2016 General Household Survey estimates 88.8% of South African households had access to piped water, compared to 81.2% in 1996. Finally, this study offers solutions for the lack of sustainable use of water in South Africa. As of 2016, about four billion people, or two-thirds of the world's population, were facing severe water scarcity. Maponya P. & Mpandeli S., 2016, Drought and food scarcity in Limpopo Province, South Africa, International Commission on Irrigation and Drainage (ICID), . Those shared river courses cover 60% of the land masses in SA and we get 40% of our water from there. Lack of Food South Africa shares its river basins with five of the neighbouring countries. When water is scarce, sewage systems can fail and the threat of contracting diseases like cholera surges. The provision of quality water to all communities is essential for human health and well-being, economic development and the realisation of the constitutional rights of all South Africans. Seasonal climate watch for July to September 2019. But it doesn't have to be like this. The current water crises in Cape Town has a far-reaching impact across the economy of South Africa, spanning both micro and macro environments, industries, and development initiatives. The situation is the same across most of South Africa. : . Agricultural activities have an ability to provide nutrition, economic, social status and reduce rural poverty. Africa is home to the largest number of water-scarce countries in the world. A shortage of clean drinking water can be devastating for the population. Beyond this, water scarcity also increases food prices, which again disproportionally affects the most vulnerable members of our society. The impact of climate change on water sources, livestock and crops is highlighted and mitigation strategies are recommended. In many countries people can pump as much water as they like from underground aquifers . Cape Town's water crisis got so bad last year that there were competitions to see who could wash their shirts the least. . Rural-urban migration to Cape Town, South Africa's second-largest city . As a water-scarce country, South Africa is facing a myriad of complex water problems: these include ageing water infrastructure, growing water scarcity, drought, the impacts of climate change, and . 30 Jan. Poverty is a major factor in water scarcity and susceptibility to drought. but water scarcity will remain a major concern for agriculture, power generation, and human . Amongst the findings and are the deleterious effects of conclusions Water scarcity in Africa is predicted to reach dangerously high levels by 2025. South Africa's planned IPPs could contribute as much as 20 GW of capacity. BOGOTA, Sept 2 (Thomson Reuters Foundation) - From Yemen to India, and parts of Central America to the African Sahel, about a quarter of the world's people face extreme water shortages that are . The constant conflict within South Sudan has left the country's water systems neglected or destroyed. At the present moment, water is being rationed by government agencies across most of South Africa. Kraemer, R. Andreas 2007: "Economic Impact of Droughts: Challenges for Water & Environmental Policies". . Barbara G. Schreiner, Eric D. Mungatana and Hannah Baleta . The population growth rate for each country in southern Africa varies between 2.2 and 3.8 %. Between 2013 and 2014 the amount of electricity produced by Eskom has decreased by 1.82% whilst that produced by independent power producers has increased by 8.51%. The city was just 90 days away from turning off the taps. Furthermore, it is generally Universal access to basic water and sanitation would result in $18.5 billion in economic benefits each year from avoided deaths alone. Moving into 2020, predictions are becoming more uncertain again. South Africa is already known for its high unemployment . Much of Sub-Saharan Africa has economic water scarcity. Access to water remains a pervasive development issue across the continent, as a 2019 report by the World Resources Institute (WRI) revealed: Indeed, addressing climate change and poor management. The FAO estimates that in Africa, overall water withdrawal is about 227 km 3 /year of which 220 km 3 are from freshwater resources and the rest is from desalination. This can be illustrated in a number of ways. 1. Increase in Food Prices . is needed to alleviate the drought's effects and secure more than . Pienaar L., 2017, Economic Impact Assessment - Drought in . South African Weather Service. Water scarcity is expected to affect the economic condition, the health of citizens as well as ecosystems in Africa. Firstly, as was seen in the drought emergency of the early 1990s in South Africa, the price of water in rural areas for basic survival can become very high. . The impact of water scarcity on economic development initiatives# James Blignaut* and Jan van Heerden Department of Economics, University of Pretoria, Pretoria 0002, South Africa Abstract South Africa's unallocated water resources have dwindled to precariously low levels. It is induced by political power, policies, and/or socioeconomic relations. Poverty and economic policy. Economic water scarcity or social water scarcity (second-order water scarcity) is caused by a lack of investment in water or a lack of human capacity to satisfy the demand for water, even in places where water is abundant. The group also accounted for conflict and policy scenarios and for factors ranging from corruption to the amount of water needed to preserve the environment. The main causes of water scarcity in Africa are physical and economic scarcity, rapid population growth, and climate change.Water scarcity is the lack of fresh water resources to meet the standard water demand. Water scarcity limits access to safe water for drinking and for practising basic hygiene at home, in schools and in health-care facilities. Contaminated drinking-water is estimated to cause 502 000 . The drought devastating parts of South Africa will cause the country's farmers to lose up to R10 billion this year. In its updated forecast for the Water Research Commission, the ISS and the Frederick S Pardee Center for International Futures shows that water demand in South Africa will outpace supply every year. There's a. economic and social impacts of, for instance, short-term water scarcity Marginalisation of certain groups Political system fragility, including the legitimacy of leadership and governance capacity . Water investment is critical to help bring Africa's people out of poverty. It is estimated that about two-thirds of the world's population may suffer from fresh water shortage by 2025. It's needless suffering. The Water Crisis in South Sudan. The Africa Water Vision for 2025 is thus designed to avoid the disastrous consequences of these threats and lead to a future where the full potential of Africa's water resources can be readily unleashed to stimulate and sustain growth in the region's economic development and While the government wants to manage water well by enforcing reduced consumption of water it cannot afford the collapse of the economy. The region also faces the greatest expected economic losses from climate-related water scarcity - estimated at between 6 percent and 14 percent by 2050," said Ferid Belhaj, World Bank Vice President for the Middle East and North Africa. Subsistence agriculture is one of the imperative segments in the South African economy and it remains a substantial sector for livelihood generation. Water Research Commission. Moreover, withdrawals are forecast to increase in all three sectors (agricultural, industrial and municipal). The Informal Council of Environment Ministers on "Water Scarcity and Droughts" on 31 August and 1 September 2007 in Lisbon was designed to further . There is also an analysis of the effects of liberalithe sation of the water sector on the citizenry, and how this can disempower millions of poo South r Africans. Your school, small group or even a few friends can make a huge difference! Although Sudan has suffered from water scarcity for decades, it's descent back into war in 2013 after the country split has further exacerbated this. The efflux of AMD-contaminated water is the most costly environmental and socio-economic problem in South Africa (Oelofse et al., 2007). Scarcity means we have to decide how and what to produce from these limited resources. South Sudan is suffering from a water crisis. Restaurants and businesses were encouraging people not to flush after going to the toilet. A trade agreement between SADC and the European Union enables many European products to enter South Africa duty-free or at lower rates than U.S. products. Here are 5 facts on water in South Africa. According to the UN website, this goal was met in 2010, five years ahead of schedule. Definition: Scarcity refers to resources being finite and limited. Water insecurity could multiply the risk of conflict. Scarcity is one of the fundamental issues in economics. Report to the . This paper addresses these issues from three facets: (1) Economic aspectsthe multiple processes through which water is conceptualized and priced; (2) analysis of water pricing considering its . Your gift of $34 will change a life. Contaminated water can transmit diseases such diarrhoea, cholera, dysentery, typhoid and polio. These regions could see their growth rates decline by as much as 6% of GDP by 2050 due to water-related impacts on agriculture, health, and incomes. white people's ability to access clean water represented a political, economic, and . South Africa is known for having a progressive constitution that goes beyond simply enshrining civil and political rights- for one, it includes a mandate that everyone has the right to sufficient food and water. Economic development is lost while people merely try to survive. In economic terms, the agriculture sector is likely to be hampered under severe water scarcity. 25 June 2019 by Tejvan Pettinger. We follow a a NG photographer as they explore water scarcity in South Africa and new innovations to help tackle the issue. Water Shortages in South Africa: Economic Analysis. For global firms controlling costs is difficult but it worsens when the price of water increases exponentially to where margins shrink precariously. Socio-economic factors have played a role in exacerbating the water crisis. Impacts of water scarcity in Africa range from health (women and children are particularly affected) . As observed in 2015, the increasing severity of this drought is impacting negatively on the country in both social and economic terms. Target 7.C of the goals promises to, "Halve, by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation" (UN, 2013). Every $1 invested in water and sanitation provides a $4 economic return from lower health costs, more productivity and fewer premature deaths. Water is crucial to hygiene and hygiene is crucial to health, so households have a tendency to deteriorate when water is removed from the equation. So, if the problem of water scarcity is well-tackled, it would yield numerous benefits for Africa, such as access to safe drinking water and sanitation, higher standard of living and even economic progress. Agriculture is one of the most pivotal economic sectors for Africa, employing the majority of the population. Scarce water also becomes more expensive. It means there is a constant opportunity cost involved in making economic decisions. Every 15 seconds Every 15 seconds a child dies from a preventable water borne disease such as diarrhea, cholera and typhoid (UN, 2018) 200 Million hours Worldwide, 80% of water scarce households appoint women and girls to fetch water. By 2030 this scarcity will likely displace anywhere between 24 million and 700 million people as conditions become increasingly unlivable. The Institutionalization of Water Scarcity . With an increase of water scarcity by 17%, the CGE model predicts a decrease of South African GDP by -0.34% in 2030. According to the World Health Organization, more than 842,000 deaths occur annually from people in lower- and middle-income families from a lack of clean water and poor sanitation. According to AQUASTAT (FAO, 2016), the share of water withdrawal by the agricultural sector in Africa is the largest at approximately 184 km 3 (about 81% of total withdrawals), mirroring global statistics. South Africa is a water scarce country and ranks as one of the 30 driest countries in the world with an average rainfall of about 40% less than the annual world average rainfall. There are many reasons why the lack of fresh water crisis in growing in South Africa. Rural-urban migration is a contributing factor. Sanitation issues are one of the leading causes of disease transmission in Africa, especially with conditions like cholera, diarrhea, dysentery, and typhoid. The Economic Impact of Cape Town's Water Crisis Cape Town has been in drought for three years. More than 2 billion people gained improved access to drinking water between 1990 and . The lack of fresh water has left South Africa in a major water surplus since 2000, one solution to this problem is the MIYA organization . That is nearly 45% of South Africa's power-generating capacity from all sources in 2013. The water scarcity is affected by many things like pollution, the growing population, climate change and at global changes. Some of the major effects of water scarcity can be understood as follows: Shortage of Drinking Water Clean drinking water is not just a privilege but a necessity. Day Zero is imminent and should it come to fruition, the South African economy as a whole will be affected. Instead, Lesotho, South Africa, Botswana and Namibia have intensified . Water scarcity and conflict: Not such a straightforward link . . Date issued: 28 June 2019. 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