The South African wildlife ranching sector: A Social Accounting Matrix Leontief multiplier analysis

Philippus C Cloete,Riaan Rosouw

doi:10.4102/ac.v14i1.225

Abstract

Orientation: There is startlingly little economic research on the South African wildlife sector which contributes toward disputes regarding the economic contribution of the sector.Research purpose: The purpose of this article is to put into context the relative economic contribution of the wildlife ranching sector, as opposed to other land-use options in South Africa.Motivation for the study: Growth in the wildlife ranching sector at the cost of other traditional farming practices resulted in disagreements amongst various role players about the impact thereof on the national economy. The controversy can most probably be explained by different beliefs, coupled with the lack of a proper understanding and quantification of the wildlife ranching sector’s contribution toward the economy.Research methodology: The study employed a Social Accounting Matrix-based Leontief multiplier analysis for South Africa.Main findings: Results from the multiplier analysis revealed that developments within the wildlife ranching sector are likely to make a relatively more superior contribution towards the economy, especially when compared to similar land-use options such as extensive livestock production.Practical/managerial implications: It has been acknowledged by both academia and private sector that a major need exists for more research on the South African wildlife ranching industry, specifically looking at issues such as the industries, economic and social contributions, potentials and constraints. The research, therefore, contributes toward the depth of economic information and research regarding the South African wildlife sector.Contribution/value added: The research provides valuable information in dealing with the ‘popular belief’, especially amongst some of South Africa’s decision makers, namely, that growth in the wildlife ranching sector is not or does not have the ability to contribute significantly toward economic and socioeconomic factors.

Highlights

The South African wildlife ranching sector has experienced tremendous growth and development; from what was seen as being just an alternative method of production on marginal land to a multidimensional industry. Bothma (2002), as cited by Cousins, Sadler and Evans (2010), defines wildlife ranching as the management of free-living animals on large, primarily fenced areas on private or communal land that are utilised for the purpose of hunting, livegame sales, trophy hunting, wildlife meat or tourism
It is important to bear in mind that the justification of Social Accounting Matrix (SAM)-based economic multipliers as a methodology for impact analysis rests on the appropriate interpretation of the results
The data reflects a snapshot of the national economy during 2006 – the multipliers are calculated for 2006-constant South African Rands

Summary

Introduction

The South African wildlife ranching sector has experienced tremendous growth and development; from what was seen as being just an alternative method of production on marginal land to a multidimensional industry. Bothma (2002), as cited by Cousins, Sadler and Evans (2010), defines wildlife ranching as the management of free-living animals on large, primarily fenced areas on private or communal land that are utilised for the purpose of hunting, livegame sales, trophy hunting, wildlife meat or tourism. It is widely considered that the insertion of a monetary value on wildlife has been critical in motivating the initial revolution, contributing toward the remarkable growth experienced in the wildlife ranching sector since 1991 (Chardonnet et al 2002; Lindsey, Roulet & Romañach 2007). Today, this sector is globally recognised, resting on several consumable and non-consumable pillars (i.e., recreational hunting, trophy or biltong hunting, venison, live-game trade and ecotourism), with hunting and ecotourism being the main contributors toward the economy of the sector (Cloete, Taljaard & Grové 2007). Role players within the sector believe that the transition to wildlife ranching has had a positive impact, namely, contributing toward overall http://www.actacommercii.co.za doi:10.4102/ac.v14i1.225

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