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Case Studies

Lekgophung Tourism Lodge, South Africa

10. Conclusions

Anticipated impact on household livelihoods in Lekgophung
Sustainability of the Lekgophung model
Value added to local social and human capital
Replicability of the Lekgophung model
SL approach considerations

Anticipated impact on household livelihoods in Lekgophung
The figures presented in this paper illustrate that a comparatively small rural business - if structured to direct most of its resource flows to local beneficiaries - has the potential to significantly improve rural livelihoods. In the case of Lekgophung, this impact is enhanced by the relatively small size of the beneficiary group. During the time of the most recent survey, the village of Lekgophung had a total population of about 2,300 persons in about 600 households. The total disposable income generated in the village was estimated at less than R600, 000 per month, with average household income around R900 per month. This means that the direct benefits captured from the single lodge enterprise could boost average household income in the village by about R3, 150 per annum and overall disposable income by more than 26%.

Indirect impacts of the income flows from lodge and related park-based developments are a matter for systematic monitoring as the process unfolds. Experience elsewhere has shown unexpected negative impacts on certain 'traditional' livelihood strategies such as agriculture, as beneficiaries of new income invest for example in cattle, but the already pressured grazing resources may not be able to sustain increased livestock numbers.

Sustainability of the Lekgophung model
The rights and benefits to the Lekgophung community through the lodge are durably secured through the following mechanisms:

  • Long term concession rights to a prime lodge development site held by a 100% community owned company (Devco)
  • Negotiated and formalised partnership with private sector operator, under a 'Maintain-Operate-Transfer' shorter term but renewable contract, from which a fixed fee and percentage of turnover accrues to the community
  • Embedded institutional arrangements for Lekgophung community representation in the MI Steering Committee, enabling participation in ongoing monitoring and coordination of park-based development, under the leadership of the Park authority
  • The capital subsidy and soft loans from DBSA and IDC enable early flow of benefits from the lodge to the community
  • The lodge fulfils a central aim of the NWPTB, to use the park conservation project as a vehicle for local rural economic development.

Value added to local social and human capital
At village level the Lekgophung Lodge has focused efforts of the RDP Forum, as an anchor project, which also opens up other opportunities for small enterprise development. Institutional roles have been clarified, and skills developed by village leadership and others.

At the MI project level, the Lekgophung Lodge has provided an example for the Molatedi community on the east side of the park, which is engaged in a similar lodge development initiative. Molatedi residents commented on the value to them of this working example, in a situation of more ambivalent community attitudes towards the park and wildlife tourism, and possibly less cohesive community dynamics.

At the area level, the NWPTB has indicated that Lekgophung model has contributed significantly towards resolution of outstanding land claims by communities dispossessed through the establishment of the park. A restitution package includes a valuable lodge development site.

Replicability of the Lekgophung model
As part of broader structural reform programs, a number of southern Africa's conservation agencies are currently undertaking programs to commercialize the wildlife estate under their control. Market-led reform of the region's state-owned conservation estate creates significant opportunities for an application of the Lekgophung model at scale across southern Africa. However, in contexts where the state appropriates resource rentals to cover the costs of estate management (i.e. in an environment where classic CBNRM-style devolutions of resource rights are not available), an impediment to the growth of local ownership in the conservation industry has been the inability of the disadvantaged partners to capitalize initial equity. Consequently, large numbers of bankable projects are not being capitalized, and the potential for progressive ownership transfer in a high value niche sector of the rural economy is being undermined.

The Lekgophung initiative seeks to overcome this impediment by establishing a partnership that gives outright ownership of a productive commercial asset to members of a disadvantaged rural community in an environment of public ownership where classic CBNRM options are not available. In order to achieve this, it uses a relatively small donor grant to leverage a bundle of investment that delivers a 100% share in the lodge-owning company to the community. The project brings substantial economic benefits and works within the 'new' conservation paradigm but it remains dependent on a capital subsidy and private expertise mobilized via partnerships with the public and private sectors.

SL approach considerations
The Lekgophung Lodge initiative has been designed to optimise livelihood benefits to the Lekgophung community through direct employment, secondary enterprises and the distribution of net income from the lodge.

The governance issues, in particular the allocative function of the Lodge Trust, could benefit from support in developing the capacity for systematic participatory context-adjusted monitoring of household livelihood trends in Lekgophung, both those related directly to the lodge and those unrelated to the lodge or park. Tools and processes to track changes in assets and livelihoods status of different interest groups within the Lekgophung community would enable transparency in the decision making.


 

Contact Details for authors

Nick Swan
Email:nickswan@iafrica.com

 

Peter John Massyn
Email: pjm@global.co.za
Website: www.mafisa.co.za



Summary
Introduction
Methodology
Structure & Funding
Financial Returns & SMME
Employment Opportunities
Skills & Institutions
Lodge governance
Development Co-ordination
Conclusion



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 
 Feedback:
Feedback on the lessons and experience presented, contributions and suggestions are welcome by email to:
livelihoods-connect@ids.ac.uk



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