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RWANDA:ECONOMIC ANALYSIS OF NATURAL RESOURCE USE IN RWANDA WITH A CASE OF LAND AND WATER RESOURCE USE IN RUGEZI WETLANDS: A SUMMARY

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Written by  William A.Twayigize

Republic of Rwanda
EA II REPORT
ECONOMIC ANALYSIS OF NATURAL RESOURCE USE IN RWANDA WITH A CASE OF LAND AND WATER RESOURCE USE IN RUGEZI WETLANDS: A SUMMARY

Sponsored by REMA/UNEP/UNDP

EA II STUDY. A Summary.                                                                                                                                                                                         February, 2011 2

Table of Contents

LIST OF ABBREVIATIONS................................................................................................................................................................. 3
1. INTRODUCTION ........................................................................................................................................................................ 3
2. METHODOLOGY ......................................................................................................................................................................... 9
2.1.Statement of the problem and research questions................................................................................................................................ 9
2.2. Objectives ............................................................................................................................................................................ 10
2.3. Hypotheses........................................................................................................................................................................... 10
2. 4. Approaches.......................................................................................................................................................................... 11
2.5. Field data............................................................................................................................................................................. 11
2.6. Data sources ........................................................................................................................................................................ 15
3. THE CASE OF RUGEZI WETLANDS .................................................................................................................................................. 15
3.1 The Rugezi wetlands................................................................................................................................................................ 15
3.2. Water and land use conditions in Rugezi Catchment area.................................................................................................................... 17
3.3. Goods and economic activities. .................................................................................................................................................. 24
3.4. The dynamics of Rugezi and lakes water levels ............................................................................................................................... 25
3.5. Comparison of exploited and non exploited areas of Rugezi ................................................................................................................ 30
3.6. Summary of soil analysis.......................................................................................................................................................... 37
POLICY OPTIONS AND CHOICES ..................................................................................................................................................... 50
4.1. Introduction......................................................................................................................................................................... 50
4.2. Scenarios of Rugezi Valley use ................................................................................................................................................... 51
LESSONS AND RECOMMENDATIONS.................................................................................................................................................. 57
5.1. Environment management as national priority Vision 2020 ................................................................................................................... 57
5.2. MDGs................................................................................................................................................................................. 57
Bibliography .............................................................................................................................................................................. 60

EA II STUDY. A Summary.                                                                                                                                                                                              February, 2011 3

LIST OF ABBREVIATIONS


DFID Department for International Development
EA I Economic Analysis I
EDPRS Economic Development and Poverty Reduction
GIS Geographical Information System
IWRM Integrated Water Resources Management
MINAGRI Ministry of Agriculture
MINECOFIN Ministry of Finance and Economic Planning
MINISANTE Ministry of Health
NUR National University of Rwanda
PRSP Poverty Reduction Strategy Paper
UNDP United Nations Development Programme
REMA Rwanda Environmental Management Authority
RoR Republic of Rwanda
SIDA Swedish International Development Agency
UNEP United Nations Environmental Programme
WHO World Health Organisation
WRI World Resource Institute

1. INTRODUCTION

STRUCTURE OF THE REPORT
Economic Analysis of natural resources use in Rwanda is grounded in the natural resources, environment and sustainable development inquiry. It is a Phase II study sponsored by REMA, UNEP and UNDP.

EA II STUDY. A Summary. February, 2011 4

In the report the argument posited in Phase I is asserted more closely with a narrower scope and a more rigorous inquiry. That is; natural resources in Rwanda are important in contributing to livelihoods, poverty reduction and sustainable development yet existing evidence show high levels of degradation and cost to the Rwandan economy. Most notably the first to feel the impact of degradation are the communities living around the natural resource - hotspots in Rwanda. Natural resources or environment has been deliberately and strategically included in the EDPRS process. The role of the natural resources and the environment has to be more visible than in the first generation of Poverty Reduction Strategy. While the original aim of the study was to assemble information for the drawing up of the EDPRS, data and information collected will continue to be useful in the implementation phases. The study underlines areas that need  emphasis and where detailed inquiry can influence implementation and future reviews of EDPRS. Natural resources broadly referring to environment in Rwanda are a public good that has to
contribute to economic growth. Ecosystem system services are important for the livelihoods of the majority of Rwandans. However for a longtime the significance and their contribution to economic growth have not meted commensurate appreciation. Nonetheless the cost of degradation of the environment has shown the opportunity cost of over-exploiting environment resources for economic development. If the natural resources were well managed without destroying the environment (and in cases protecting it) the costs would have been avoided and growth would have probably been higher.


Phase II is more a focused study. Instead of analyzing natural resources and environment broadly only water and land use are studied. The approach provides a more evidence based analysis that can provide tangible lessons for policy. In relation to the question of cost of degradation and the significance of natural resources and the ecosystem services functions Rugezi Wetlands is used as a case study. Inquiry is focused on costs and benefits of sustainable and  unsustainable use of land and water. The benefits and costs can be in monetary or non monetary terms. The purpose of Phase II Report is to identify constraints and opportunities for poverty reduction and economic growth based on sustainable land and water use. In a nutshell it serves as a case analysis about
how sustainable use of natural resources can promote pro-poor growth. The report is organized as follows; Section 2 gives a backgroundon the link between poverty and environment, the position of water and land in the development planning and implementation and in particular the EDPRS process which this study should inform and support. Section 3 outlines the conceptual and theoretical framework on the integrated nature of the natural resources analysis. What do we know about wetlands with regard to water and land use? What do we need to know in relation to Rwanda and how can we know it using Rugezi?
Section 4 outlines the methodology used while Section 5 assesses the situation of water and natural resource use in Rwanda. Section 6 contains a detailed report of survey and secondary data on Rugezi Wetlands. The first part is more on the socio-economic returns of the survey while the second is on more professional soil and water analysis sub studies. Section 7 delves into the future of natural resource use. Specifically if policy attitude would continue to be ‘business as usual’ what would the scenario in 5, 10 and 15 years look like? Specifically is also an assessment of policy choices. The central question is whether conservation
and protecting Rugezi Wetlands is better for pro-poor growth compared to alternative sustainable management of the wetlands with regard to water and land. Unlike in EA I more concrete data from Rugezi wetlands are used. Section 8 focuses on the lessons and recommendations to be drawn with focus on the policy implications. The penultimate part contains appendices.

EA II STUDY. A Summary.                                 February, 2011 5


BACKGROUND


Rwanda is a dominantly agricultural economy. More than 90 per cent of the population live in rural areas and depend on agriculture for employment. Total land area is 2.634 million ha equivalent to 26,388 square kilometres. Of these 12 per cent is covered by forests, 32 per cent by shrub lands, savanna and grasslands and 8 per cent wetlands (WRI 2000). While it is evident that depending on land makes natural resources an important source of livelihood in the country, over the last four to seven decades there is evidence that the environment has gradually been degraded. Rwanda is still a beautiful country because of its
environment. It is sensible in scientific terms to estimate the benefits, the monetary and non monetary gains and potentials of the beauty. But there is also growing evidence that there has been massive degradation and unsustainable natural resource use in the last seven to ten decades (Dixon and Homer 1995, Baechler 1999). While users of land and water in the past were doing it for economic gains the evidence being assembled point to high costs of the unsustainable use in the past. The report uses data and information to argue for a shift in policy towards a more sustainable use of resources in Rwanda. It attempts to contribute to the dialogue on how natural resources particularly wetlands can be used for economic gain without compromising its potential contribution to future generation. Data hitherto available indicate albeit generally, increasingly drying wetlands and lowering of water levels of water bodies and lakes, massive deforestation and extensive soil erosion1. Of the natural forests that occupied most of Rwanda more than 90 per cent have perished. Soil erosion is
felt in more than 50 per cent of Rwandan households. Health related diseases are still common afflictions and causes of morbidity. Water pollution and siltation of rivers and wetlands are still common phenomena and formidable problems to contend with (Musabe et al 2006). Natural causes like topography of Rwanda have caused massive soil erosion. However substantial erosions of the soil have been caused by many years of deforestation of catchment areas and watersheds as well as unsustainable agriculture most pressingly on hilly to mountainous slopes. A considerable amount of soil erosion can be controlled by people. A lot of good soil and water is carried by rivers out of Rwanda. Yet it is possible to evolve methods of using water and land resources in a more sustainable manner and in a way that augments the livelihoods of the people. It is the human dimension of the natural resources use and management that is crucial for current
debates. Why must policy frameworks such as poverty reduction strategy papers and Vision 2020 take adequate measures to address problems of environment and natural resources? The first obvious constraint of environmental scarcity has been demand induced. Population of Rwanda has been relatively very high at global rates both in absolute and real terms (see Table 1). Rwandans continue to depend extensively on land and water based resources to meet social and
economic needs. Cropland has occupied about 47 per cent of land area (WRI 2000). Marshlands and forests still support a majority of Rwandan livelihoods. Fuel, timber, honey, building material and other natural products are a considerable stock of goods from natural base. Tourism was for a long time a third source of foreign exchange in Rwanda after coffee and tea (Waller 1999). The relation between man and these resources is crucial to how Rwanda can shape future paths out of 1 EA I give data on costs of degradation and gives survey returns on two hotspot areas of Gishwati Forests and Rugezi Wetlands in general. EA II focuses on land and water use more closely and for Rugezi in particular

EA II STUDY. A Summary. February, 2011 6


poverty to prosperity. It is therefore understandable why ENR are increasingly accorded prominence in EDPRS and Vision 2020. Water use presents even a better case for sustainable use of resources for growth and poverty reduction. Rwanda has a dense hydrological network. It is drained by the Nile and Congo Rivers.
The Nile Drainage system drains the part of Rwanda to the East of the Congo-Nile divide (a 25 km watershed). It covers 67 per cent of the country and receives 97 per cent of the national rainfall. The drainage is about 8-10 per cent of all Nile Waters. Yet Rwanda uses very little of the water as will be demonstrated shortly, for enhancing agricultural production and poverty reduction. The Rivers and Lakes cover 135,000 ha or 5 per cent of the territory. Wetlands cover 164,000 ha or 6 per cent of the territory. Of these the largest are Akanyaru (3,000ha), Nyabarongo (10,000 ha) and Rugezi (5,000 ha).Other important wetlands in Rwanda are Mugesera-Rugwero and Akagera Swamps. Some 94,000 ha of all wetlands are under cultivation (FAO 2000). The central question has been how to use the remaining land and water resources in promoting economic growth and reducing poverty? With more empirical evidence from Phase II and a body in form of Environment Management Authority, operating under a full government mandate, it will be possible to effectively mainstream environment in EDPRS in a manner that will contribute to sustainable economic development. An integrated approach adopted by the study will enable various government institutions to develop coordination that links aspects of the environmental management to optimize performance ofindividual economic sectors. Infrastructure such as terracing,
reforestation and water management within marshes constitute elements of one integrated approach. These are also related to the energy sector, encouraging more efficient use of fuel wood and sourcing for alternative energy sources. The mode of participation in the use of natural resources will be supported and regulated by the land law and policy. It is within the framework that the Land and Water resource uses of Rugezi area (wetlands and the surrounding community)
are being used as the focus of the study in EA II. Rugezi is used as a case study that brings out concretely not only the array of constraints to our contention in the study but also existing opportunities. In order to achieve sustainable development, environmental protection shall constitute an integral part of the development process and cannot be considered in isolation with it. Sustainable human development should be able to meet needs of the present generation without compromising the needs of future generations. In EA Phase II of the study our main focus is marshlands as an embedment of both water and land in its catchment. Although the report is grossly on Rwanda more concrete focus is Rugezi Wetlands. The importance of the latter is not only confined to Rwanda. Together with interlinked Lakes Bulera and Ruhondo the wetlands are protected under the Ramsar Convention. At conceptual and empirical levels therefore analysis on Rugezi Wetlands is not delinked to global concerns on environmental degradation and the need to rethink policy on resource use and management that is sustainable. Following from the observation above, it is noteworthy that half of the world’s wetlands have been lost in the last century. About 80 per cent of grasslands are suffering from soil degradation. Every minute 28 hectares of forests are lost. The root causes of habitat and biodiversity loss are largely institutional and socio-economic (World Bank 2006) EA II STUDY. A Summary. February, 2011 7 There are three challenges that can be pointed out with regards to operationalisation of concepts related to wetlands and marshlands. Firstly is the difficulty of quantification and evaluation. The value of wetlands is known to be unappreciable in any society. However the real price tag and how to assign the value to a unit area is still far from precise. EA I and now EA II emphasizes the
need for a detailed and more scientific evaluation of Rugezi and other wetlands. Data in the report are estimates based on samples of limited reliability and estimated from elsewhere in the world. Appendix 3 summarizes types of evaluation methods. It is noteworthy however that in Phase I the cost of degradation of resources was used to how much is being spent because of past practices. In Phase II some data on soil and water as elements of natural resources use have been collected and are presented. A second challenge then is how to use the usefulness of the resources to justify poverty reduction and sustainable growth. For Rugezi again it was easy to use the impact on energy generation downstream the Wetlands to justify the link to economic growth. However an appropriate
approach has been to use available data on ecosystem and how it is linked to well being and human development. In a situation where quantification is a problem even the relationship between consumption and income poverty and wetlands is not easy. The link between ecosystem services and human development approaches has just been attempted in Rwanda. As more studies and data will be made available robust indicators of poverty and environment will be developed
and the value of wetlands can better be appreciated than now. In the report a more descriptive analysis is advanced based on field visits of three national consultants and one international expert. Nevertheless in a context of water and land use focused in the current phase, there is a need to carry out location specific estimates of water related poverty and climate change vulnerability. Section 4 few data is provided in relation to why Rwanda needs to use more of the water that is available to reduce poverty. Using a Water Poverty Index it is possible to analyze not only water that is available in Rwanda (stock of resources) but how it can be accessed for poverty reduction. A third challenge is how to use an integrated approach to the question of natural resources and
poverty reduction or economic growth. Rwanda has attempted to use a ‘catchment’ approach. The focus is thus not the water and land in the Rugezi valley or any other wetland. The integrated approach has been to take on board issues of the land surrounding the area and in this regard also the role of underground water. In the problem a conceptual distinction of ‘green’ water from ‘blue’ water has been used to emphasize the role of managing forests and grasslands surrounding
valleys and wetlands. The integrated approach includes also water that is not necessarily flowing directly into the lakes, rivers and marshes.


EA II STUDY. A Summary. February, 2011 9

2. METHODOLOGY
2.1.Statement of the problem and research questions
Rwanda enjoys rich wet seasons and it has a good hydrographic network that should satisfy the increasing demand in water. However, the underground water is seriously threatened by increasing massive deforestation and degradation due to high population growth that depend onwood as the main domestic energy source. In other words the rate of use of ‘green’ water in Rwanda is low. Additionally inadequate agricultural technologies that do not take into account social costs caused by poor agricultural production contribute to water resources degradation. At the same time, across the country, there is a lot of wastage of water including inexcusable tolerance of activities that pollute or deplete underground sources (MINITERE, 2004). While on one hand there is apparently unsustainable use of ‘green’ water in some valleys and marshes there is at the same time a low level of withdrawal of ‘blue’ water from rivers (Sadoff 2005 and SIDA 2005) and sub optimal uses of wetlands such as low or zero fishing in most of the lakes mentioned in Section 5 below..
Besides that the population pressure is high Rwanda is generally poor. The 2002 national population census report documented that the population density had reached 322 inhabitants per sq. km(RoR 2003). More than 70 per cent have less than a hectare of land. But FAO estimates that a family needs at least 0.75 of ha to support agriculture that can provide adequate nutrition to the family. The problem of reduced size of cultivated land per household is observed across the
whole country and it is becoming more and more obvious that the Rwandan family farm unit is no longer viable (MINITERE, 2004). About 92 per cent of Rwandan inhabitants live in the rural areas and 90 per cent of them depend on agriculture. The per capita income is estimated to be US$ 250. The incidence of poverty below a national poverty which was sightly above 60 per cent till recently has declined by less than 4 per cent point in the last five years(RoR 2006).
Moreover the generic nature of the problem is accentuated by the fact that more than 70 per cent of the poor are in the rural areas depending on agriculture for a livelihood. Rwanda has a hilly topography and as a consequence, more than 50 per cent of farm holds experience severe forms of soil and fluvial erosion. Because of land scarcity there is over cultivation of agricultural fields and almost all marginal lands are being utilized. The gross consequences are falling yields from
agriculture. Due to demographic pressure man based environmental degradation and lack of application of modern methods of agriculture productivity per area of all major crops has been declining since 1990s (MINITERE, 2006). Against the above described situation facing land and water resources in Rwanda, the questions that come to the mind are:

    Are the current land and water resources use sustainable?
    What are the costs and benefits of the current practices in land and water resources use?
    Who are the losers and the gainers of the current practices?
    What are the alternative community-based, bottom-up, pro-poor and sustainable policy  options? Which are the approaches?

EA II STUDY. A Summary. February, 2011 10
2.2. Objectives
The main objective:

    To assess the costs and benefits, in monetary and non-monetary terms, of sustainable and unsustainable land and water use in order to highlight the  importance  of environmental sustainability to poverty reduction over time.
    To identify constraints and opportunities for sustainable poverty reducing economic growth based on sustainable land and water use.

Activities

    Undertake a detailed field study to identify and quantify the impact of unsustainable land use (over cultivation, soil erosion, deforestation etc.) and the impact of unsustainable water uses (pollution, depletion, diseases, time taken to collect water, inadequate water for agriculture, lower production, fertilizer run-off impact on water quality etc.) on the socio-economic benefits2 provided by land and water. • Identify significant links between land and water uses and how environmental sustainability impacts on these. E.g. soil erosion and water linkages, deforestation and inadequate quantities of fuel wood for boiling water and cooking; • Identify and describe sustainable land and water management approaches (e.g. multicropping, soil conservation measures, targeted application of fertilisers and pesticideswithin sustainable land and water use framework, Integrated Water Resources Management (IWRM);
    Suggest and analyze (using integrated economic and environmental appraisalmethodologies such as comprehensive cost-benefit analysis) options for sustainable landand water uses, particularly pro-poor options that have greater impact on povertyreduction and broader human-well being. Relate findings to policy issues;4
    Use the Rugezi wetlands as the field study site;
    Based on the detailed field work and other sources of data, plus analysis of multiplierimpacts, estimate the sectoral and macro-level impact of unsustainable and sustainableland and water use on the projected growth and poverty reduction rates in the short,medium and long term (EDPRS). A scenario approach should be considered, includingto present ‘if-then’ estimates;
    Give clear recommendations on strategic priority actions to maximize and maintain thesustainable the flow of ecosystem service benefits to people in the long term in order toreduce poverty and improve other human development indicators. (Suchrecommendations are to be aimed at inclusion in EDPRS);

2.3. Hypotheses

EA II STUDY. A Summary. February, 2011 11
Based on the objectives of this study, three main hypotheses will be tested:

    The current land and water uses in Rwanda are unsustainable; they do not take into account the fact that these are exhaustible resources.
    The costs of unsustainable practices in land and water uses will overweigh the social benefits in the future and this will compromise the social welfare of the future generations.
    Sustainable use and management of wetlands is more likely to be beneficial to communities and the economy than mere protection on hand and unregulated or purely commercial , agricultural or other ‘free entry’ land use.

2. 4. Approaches
The study will use two holistic approaches namely Ecosystem Approach and Integrated Water Resource Management Approach (IWRMA) to analyze water and land use practices in Rwanda. The ecosystem approach used in Phase I includes goods and services as well as regulation and non market services such as tourism. It has capacity to include in analysis benefits and costs that are either monetary or non monetary. As mentioned in the previous section it augurs well with the
focus on human development of people living in the catchment of the wetland. An IWRM approach promotes the coordinated development and management of water, land, and related resources, in order to maximize the resultant economic and social welfare in an equitable manner without compromising the sustainability of vital ecosystems. This includes more coordinated development and management of:

    land and water,
    surface water and groundwater,
    the river basin or wetland and its adjacent environment,
    upstream and downstream interests.

2.5. Field data

Data from 60 households were collected from Rugezi wetlands. Data collected around Butaro represent cases of degraded wetlands where use was unregulated. Data from Ruhunde are data from the part of Rugezi that is generally not degraded and where protection means an undisturbed ecosystem. There are all sorts of data and information that are presented in Section 6. These include information on goods and services in the marshes and responses of communities on protection.
Interview responses from the markets shed light on goods availability and alternatives to diminishing goods from the study area. In relation to changing climate data on rainfall was collected from Ministry of Infrastructure Kigali. There are primary data sets on soil and water. These offer a professional analysis using sample data on soil erosion, texture and fertility as well as pollution of water and siltation
EA II STUDY. A Summary. February, 2011 12

Except for the more scientific soil and water analyses, the bulk of the data in the case study section were collected using a questionnaire. The questionnaire sought to assemble data on household information, goods and services from land and water use and costs of using low water quality. They were carried out between the month of December 2006 and March 2007.
2.5.2 Soil Analysis

Sustainable land use in Rugezi cannot be achieved without a thorough knowledge about the soils erodibility and fertility aspects. In order to have a comprehensive approach, this section of soil study in Rugezi has taken a water basin approach where soils on the surrounding hills of Rugezi as well as those in the wetland were sampled and scientifically analyzed. The results give a clear guidance for the future sustainable use of Rugezi watershed area. The preliminary study was carried out in two sectors representing degraded area (Butaro 2,3,4,5 See Map 1) and no-degraded area (Cyeru 1 and Butaro 1). The section of Rugezi watershed found
in Butaro Sector had been subjected to cultivation of Potatoes, Maize and vegetables production for the last 20 years, while the section of Cyeru Sector and a small part of Butaro were almost protected. Due to heterogeneous nature of the area, 6 representative study sites were selected within the entire study area. Erodibility indices were determined on the 12 sub-sites using an updated apparatus named “Rainfall simulator”. Two rainfall intensities were used based on the rainfall intensity in the region and a mean soil loss per ha per year was extracted using the annual rainfall from Meteorology station of Rwerere. In addition soil samples were collected in the 12 stub-sites for soil fertility parameters determination. Selected key soil quality parameters such as: Soil Organic Carbon, Soil pH, Particle size analysis, Soil texture, Effective cation exchange capacity and Soil N,P and S were determined in the Soil Science laboratory of ISAR-Rubona. Updated laboratory methods were
performed to determine the mentioned parameters. Finally, the results from the field and laboratory work were used to characterize comprehensively the status of the selected study sites and a general extrapolation on the entire Rugezi watershed (Burera District section) was attempted. The data were subjected to the Genstat V computer package for statistical analysis.
2.4.3 Water analysis

The main task was to identify the possibility of pollution to water sources due to human activities such as fertilizer use, run off from poorly cultivated land, land and water use practice in general and to identify the possible impacts to human health, the environment and general livelihood of the users To ensure the production of reliable and useful data within a limited time the following methodologies were applied in this study; site visit, interviews with local people, health care
givers at the health centre and water sampling and analysis.
Site Visit and Interviews

EA II STUDY. A Summary. February, 2011 13
Site visit helped to establish sampling sites and identification of water quality parameters to be analyzed since the information on the water uses and different activities including agricultural practice were obtained through physical observation and discussion with local people. This also helped to identify the common diseases in the area to be able to link the quality of water and common diseases in the area.
Water Sampling and Analysis

Three different Sampling sites were identified at the most degraded area of RUGEZI wetland and different sampling points were established. Part of Rugezi wetland studied is in RUSUMO Sector. Factor attributed to the selection of these sites are: 1. Physical appearance of the water bodies 2. Different uses of water
Sampling Point Description

Activities in and at the neighboring vicinity of the water body Importance of the receiving environment of the discharge resulting from human activities
around that water body. Table below indicates the sampling points and assigned code to each sampling point relative to other sampling point. Due to the time constraints samples were collected once but in triple per sampling point. For the purpose of this study every type of samples were defined S1 to S6.
Three different sampling sites and respective sampling points were identified as follows with the explanation in table 1 bellow:
Table : Water Quality Sampling Sites, Their Physical Characteristic and Uses
Some more of the information is still continuing later

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