Skip to main content

Research, Policy and Practice

Table 7 Financial and economic values associated with proposed livestock systems and tourism wildlife viewing enterprises – Karoo 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

Commercial

Tourism

Financial data

   

 Initial capital

139,384

7,481,255

6,527,865

At stability

   

 Gross turnover

25,208

1,972,255

6,627,604

 Financial costs variable

13,775

612,625

12,130,743

 Financial costs fixed

8,095

1,102,375

9,056,362

 Entrepreneur net income

3,338

257,255

5,440,499

 Community income

6,578

219,024

2,577,744

Overall return

   

 Financial IRR (10 years)

5.42%

13.42%

19.81%

 Financial NPV (10 years at 10%)

(29,844)

1,129,712

17,984,661

 Wage bill

3,240

453,024

3,981,744

Economic data

   

 Initial capital

119,933

7,386,407

30,350,760

 Gross output

29,647

2,144,615

25,504,896

 Economic costs

23,149

1,650,267

15,994,383

Incremental contribution to GNI

6,498

494,348

9,510,514

Incremental contribution to NNI

3,857

308,247

8,268,390

 Economic IRR (10 years)

18.48%

27.24%

40.03%

 Economic NPV (10 years at 10%)

42,544

4,190,185

44,289,321

 Number of jobs

0.60

29

153

Incremental contribution to GNI per hectare

2.79

9.47

109.32

Incremental contribution to NNI per hectare

1.66

5.91

95.04

 Community income per hectare

2.82

4.20

29.63

 Entrepreneur net cash income per hectare

1.43

4.93

62.53

 Initial economic capital per hectare

51.47

141.50

348.86

 Economic gross output per hectare

12.72

41.08

293.16

  1. IRR, internal rate of return; GNI, gross national income; NNI, net national income; NPV, net present value.