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Research, Policy and Practice

Table 6 Financial and economic values associated with proposed livestock systems and tourism wildlife enterprises - Savanna biome (N$, 2008, where N$1.00 = US$0.13)

From: Expected climate change impacts on land and natural resource use in Namibia: exploring economically efficient responses

  Traditional Cattle post Commercial Tourism
Financial data     
 Initial capital 87,345 1,019,233 3,316,252 34,902,460
At stability     
 Gross turnover 29,237 374,960 828,721 46,051,817
 Variable financial costs 7,802 223,486 361,592 35,102,546
 Fixed financial costs 10,017 80,864 425,608 7,434,437
 Entrepreneur net income 10017 70,610 41,521 3,514,834
 Community income 18,438 97,610 62,370 1,487,160
Overall return     
 Financial IRR (10 years) 15.49% 8.30% 6.59% 21.02%
 Financial NPV (10 years at 10%) 24,733 (135,447) (637,192) 15,202,591
 Wage bill 7,020 27,000 103,950 3,287,160
Economic data     
 Initial capital 75,501 894,863 3,068,388 30,307,333
 Gross output 24,893 426,422 673,377 41,877,101
 Economic costs 19,136 256,154 584,119 31,476,663
Incremental contribution to GNI 5,757 170,268 89,258 10,400,439
Incremental contribution to NNI 4,536 147,025 (47,474) 9,577,954
 Economic IRR (10 years) 19.76% 10.86% 6.81% 63.09%
 Economic NPV (10 years at 10%) 35,386 56,443 (501,139) 55,517,848
 Number of jobs 1.3 4 7 135
Incremental contribution to GNI per hectare 31.99 24.05 8.93 385.20
Incremental contribution to NNI per hectare 25.20 20.42 (4.75) 354.74
 Community income per hectare 102.43 8.12 6.24 55.08
 Entrepreneur net cash income per hectare 63.43 7.03 4.15 130.18
 Initial economic capital per hectare 419.45 140.25 306.84 1,122.49
 Economic gross output per hectare 138.30 66.63 67.34 1,551.00
  1. IRR, internal rate of return; GNI, gross national income; NNI, net national income; NPV, net present value.