In South Africa, securing clean and reliable water supplies is a national priority. Yet many of the country’s most important water catchment areas—unlike iconic wildlife parks—don’t benefit from tourism or other market-based conservation funding. Instead, their value lies in the essential services they provide to communities, industries, and ecosystems downstream. These areas, known as Strategic Water Source Areas (SWSAs), are often poorly protected and managed.
To address this, it’s crucial to understand and communicate the value of the public benefits these areas provide—such as water purification, climate regulation, and soil protection. This project focuses on the Amathole SWSA as a case study to measure those benefits, raise awareness, and influence policies that can improve protection and management.
Conservation Strategy Fund (CSF) is partnering with The Nature Conservancy (TNC) to conduct an economic valuation of ecosystem services in the Amathole SWSA in South Africa. This work advances water security, biodiversity conservation, and climate resilience in one of the country’s most important natural regions. By valuing the ecosystem services of the Amathole SWSA—for example water regulation, carbon storage and food provisions—CSF and TNC aim to help decision-makers and investors recognize the real, tangible value of nature.
The work is being delivered in two phases. After the first phase of reviewing existing research at a national level in 2024, Phase 2 is now underway to assess the economic value of ecosystem services in the Amathole region, a priority catchment for TNC South Africa. Findings will support the inclusion of these areas in South Africa’s Protected Area expansion plans, specifically the 30x30 implementation plan—an international commitment to protect 30% of the planet’s land and water by 2030. Lessons learned will also inform future evaluations and be shared with national decision-makers through the SWSA 30x30 forum.
Importantly, this project contributes to global conservation efforts by demonstrating how robust economic evidence can strengthen the case for nature-based solutions and guide strategic investment in ecological infrastructure. It advances the application of conservation economics in data-scarce, highly biodiverse contexts and offers a replicable model for other countries seeking to prioritize natural capital in national development and climate planning. By equipping policymakers with clear, quantified evidence of nature’s value, CSF and TNC are helping to reframe conservation as not just a moral or ecological imperative—but a sound development strategy that benefits people and nature.
Key Results
The Amathole Strategic Water Source Area (SWSA) in South Africa’s Eastern Cape is one of the country’s most important yet least protected natural water catchments. It provides over 90% of the water stored in local dams that supply towns such as East London, King William’s Town, and Bisho. The region’s forests, thickets, grasslands, and wetlands also store carbon, support agriculture, and sustain local communities and wildlife.
To show how vital these natural systems are, Conservation Strategy Fund (CSF), working with The Nature Conservancy (TNC), estimated the economic value of three major ecosystem services in Amathole:
- Carbon sequestration
- Amathole’s natural ecosystems capture between US $4 million and US $185 million worth of carbon each year (R 72 million–R 3.3 billion), depending on vegetation type and carbon prices. Most of this value comes from intact forests and thickets, highlighting their critical role in South Africa’s climate goals and potential for participation in carbon markets or payment for ecosystem service schemes.
- Water supply
- The area’s rivers and wetlands generate water-provisioning benefits valued between US $10 million and US $25 million per year (R 177 million–R 437 million). However, the invasion of alien plant species such as wattle and pine reduces water yield by about 6%, costing the local economy tens of millions of rands annually. These findings strengthen the economic argument for catchment restoration and invasive species control.
- Food provision
- Natural ecosystems contribute directly to local food security and agriculture. For small-scale and commercial farming combined, nature’s “hidden contribution” to crop productivity in Amathole is worth about R 29 million (≈ US $1.5 million) per year, with maize used as a representative crop. Depending on production intensity and local dependence, broader estimates range from R 14 million to R 198 million annually.
Together, these services are worth hundreds of millions to billions of rands every year—a clear signal that protecting Amathole’s landscapes is not only an environmental priority but also a sound economic investment.
The research shows that:
- Healthy ecosystems are essential infrastructure: supporting water security, food production, and climate resilience.
- Degradation has measurable economic costs, particularly from invasive species and land mismanagement.
- Investing in restoration, sustainable land use, and nature-based finance (such as carbon credits, ecological fiscal transfers, and payments for ecosystem services) can generate high returns for both people and nature.
By placing a monetary value on nature’s benefits, this study gives decision-makers, investors, and communities clear evidence that protecting the Amathole catchments is vital for South Africa’s long-term water, food, and climate security.
__
Photo: Hogsback, Amathole Mountains, Charmaine A Harvey, Shutterstock