IDEAS home Printed from https://ideas.repec.org/a/iwt/jounls/h049189.html
   My bibliography  Save this article

An overview of water markets in southern Africa: an option for water management in times of scarcity

Author

Listed:
  • Matchaya, Greenwell
  • Nhamo, Luxon
  • Nhlengethwa, Sibusiso
  • Nhemachena, Charles

Abstract

Southern Africa faces acute water scarcity challenges due to drought recurrence, degradation of surface water resources, and the increasing demand of water from agriculture, which has to meet the growing food demands of an increasing population. These stressors require innovative solutions that ensure the sustainability of water resources, without which the consequences could be dire for a region exposed to a host of vulnerabilities, including climate change. This review outlines the role of water markets in water management in times of water scarcity, highlighting the drivers of water markets in southern Africa, such as water scarcity, transboundary nature of water resources, and their uneven distribution. The review further discusses the role of water markets in climate change adaptation. Related institutional and legal frameworks as well as water allocation mechanisms are explored, aiming at improving water markets governance. The impact of adaptation to new water regimes in the face of scarcity are assessed by considering characteristics of current markets as related to future opportunities. In a diverse region such as southern Africa with unevenly distributed water resources, advancing the concept of water markets could play an important role in mitigating water scarcity challenges and promoting regional integration through coordinated transboundary water transfers. The emergence of water markets in the region is influenced by the continued depletion of water resources, which is resulting in the adoption of innovative water marketing strategies, such as inter-farm sharing or farm joint venture systems and inter-basin and intra-basin water transfers. As the concept is new in the region, it still has challenges that include general market inefficiencies, high transaction costs, market information asymmetries, imperfect competition, and weak or absent robust institutional frameworks that can facilitate market development.

Suggested Citation

  • Matchaya, Greenwell & Nhamo, Luxon & Nhlengethwa, Sibusiso & Nhemachena, Charles, 2019. "An overview of water markets in southern Africa: an option for water management in times of scarcity," Papers published in Journals (Open Access), International Water Management Institute, pages 11(5):1-16..
    • Handle: RePEc:iwt:jounls:h049189
    DOI: 10.3390/w11051006
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-4441/11/5/1006/pdf
    Download Restriction: no
    File URL: https://libkey.io/10.3390/w11051006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Charlotte MacAlister & Nidhi Subramanyam, 2018. "Climate change and adaptive water management: innovative solutions from the global South," Water International, Taylor & Francis Journals, vol. 43(2), pages 133-144, February.
    2. Barker, Randolph & Dawe, D. & Inocencio, A., 2003. "Economics of water productivity in managing water for agriculture," Book Chapters,, International Water Management Institute.
    3. Gillitt, C.G. & Nieuwoudt, W. Lieb & Backeberg, G.R., 2005. "Water markets in the Lower Orange River catchment of South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(3), pages 1-20, September.
    4. Nhamo, Luxon & Matchaya, Greenwell & Mabhaudhi, T. & Nhlengethwa, Sibusiso & Nhemachena, Charles & Mpandeli, S., "undated". "Cereal production trends under climate change: impacts and adaptation strategies in Southern Africa," Papers published in Journals (Open Access) H049086, International Water Management Institute.
    5. Barbara van Koppen & B. Schreiner, 2018. "A hybrid approach to decolonize formal water law in Africa (IWMI Research Report 173)," IWMI Research Reports H048956, International Water Management Institute.
    6. Liang Zhang & Sisi Li & Hugo A. Loáiciga & Yanhua Zhuang & Yun Du, 2015. "Opportunities and challenges of interbasin water transfers: a literature review with bibliometric analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 105(1), pages 279-294, October.
    7. R. Quentin Grafton & Gary Libecap & Samuel McGlennon & Clay Landry & Bob O'Brien, 2011. "An Integrated Assessment of Water Markets: A Cross-Country Comparison," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(2), pages 219-239, Summer.
    8. Mary E. Renwick & Sandra O. Archibald, 1998. "Demand Side Management Policies for Residential Water Use: Who Bears the Conservation Burden?," Land Economics, University of Wisconsin Press, vol. 74(3), pages 343-359.
    9. van Koppen, Barbara & Schreiner, B., 2018. "A hybrid approach to decolonize formal water law in Africa," IWMI Reports 284242, International Water Management Institute.
    10. Gardner, Bruce L., 1994. "Commercial Agriculture in Metropolitan Areas: Economics and Regulatory Issues," Agricultural and Resource Economics Review, Cambridge University Press, vol. 23(1), pages 100-109, April.
    11. Mehta, Lyla, 2001. "The Manufacture of Popular Perceptions of Scarcity: Dams and Water-Related Narratives in Gujarat, India," World Development, Elsevier, vol. 29(12), pages 2025-2041, December.
    12. Luxon Nhamo & Greenwell Matchaya & Tafadzwanashe Mabhaudhi & Sibusiso Nhlengethwa & Charles Nhemachena & Sylvester Mpandeli, 2019. "Cereal Production Trends under Climate Change: Impacts and Adaptation Strategies in Southern Africa," Agriculture, MDPI, vol. 9(2), pages 1-16, February.
    13. Gareth A S Edwards, 2013. "Shifting Constructions of Scarcity and the Neoliberalization of Australian Water Governance," Environment and Planning A, , vol. 45(8), pages 1873-1890, August.
    14. Dinar, Ariel & Rosegrant, Mark W. & Meinzen-Dick, Ruth, 1997. "Water allocation mechanisms : principles and examples," Policy Research Working Paper Series 1779, The World Bank.
    15. World Bank, 2016. "Energy-Water Nexus in Southern Africa," World Bank Publications - Reports 24667, The World Bank Group.
    16. Nhamo, Luxon & Ndlela, B. & Nhemachena, Charles & Mabhaudhi, T. & Mpandeli, S. & Matchaya, Greenwell, 2018. "The water-energy-food nexus: climate risks and opportunities in southern Africa," Papers published in Journals (Open Access), International Water Management Institute, pages 10(5):1-18..
    17. Hellegers, Petra J.G.J. & Perry, Christopher J., 2004. "Water As An Economic Good In Irrigated Agriculture: Theory And Practice," Report Series 29109, Wageningen University and Research Center, Agricultural Economics Research Institute.
    18. Gichuki, Francis & McCornick, Peter G., 2008. "International experiences of water transfers: relevance to India," IWMI Conference Proceedings 235175, International Water Management Institute.
    19. Mabhaudhi, T. & Mpandeli, S. & Nhamo, Luxon & Chimonyo, V. G. P. & Nhemachena, Charles & Senzanje, A. & Naidoo, D. & Modi, A. T., 2018. "Prospects for improving irrigated agriculture in Southern Africa: linking water, energy and food," Papers published in Journals (Open Access), International Water Management Institute, pages 10(12):1-16.
    20. Nhamo, Luxon & Mabhaudhi, T. & Modi, A. T., 2019. "Preparedness or repeated short-term relief aid?: building drought resilience through early warning in southern Africa," Papers published in Journals (Open Access), International Water Management Institute, pages 45(1):75-85.
    21. Hany Besada & Karolina Werner, 2015. "An assessment of the effects of Africa's water crisis on food security and management," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 31(1), pages 120-133, March.
    22. Hussam Hussein, 2017. "Politics of the Dead Sea Canal: a historical review of the evolving discourses, interests, and plans," Water International, Taylor & Francis Journals, vol. 42(5), pages 527-542, July.
    23. Gichuki, Francis & McCornick, Peter G., 2008. "International experiences of water transfers: relevance to India," Conference Papers h041812, International Water Management Institute.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luxon Nhamo & Bekithemba Ndlela & Sylvester Mpandeli & Tafadzwanashe Mabhaudhi, 2020. "The Water-Energy-Food Nexus as an Adaptation Strategy for Achieving Sustainable Livelihoods at a Local Level," Sustainability, MDPI, vol. 12(20), pages 1-16, October.
    2. repec:ags:aaea22:335539 is not listed on IDEAS
    3. Magidi, J. & van Koppen, Barbara & Nhamo, L. & Mpandeli, S. & Slotow, R. & Mabhaudhi, Tafadzwanashe, 2021. "Informing equitable water and food policies through accurate spatial information on irrigated areas in smallholder farming systems," Papers published in Journals (Open Access), International Water Management Institute, pages 1-13(24):36.
    4. Oluwaseun Samuel Oduniyi & Sibongile Sylvia Tekana, 2021. "The Impact of Sustainable Land Management Practices on Household Welfare and Determinants among Smallholder Maize Farmers in South Africa," Land, MDPI, vol. 10(5), pages 1-16, May.
    5. Javier Muñoz de Prat & María Escriva-Beltran & Roberto Gómez-Calvet, 2020. "Joint Ventures and Sustainable Development. A Bibliometric Analysis," Sustainability, MDPI, vol. 12(23), pages 1-24, December.
    6. Hasrul Hazman Hasan & Siti Fatin Mohd Razali & Nor Hidayah Mohd Razali, 2021. "Does the Household Save Water? Evidence from Behavioral Analysis," Sustainability, MDPI, vol. 13(2), pages 1-20, January.
    7. Luxon Nhamo & Sylvester Mpandeli & Stanley Liphadzi & Tinashe Lindel Dirwai & Hillary Mugiyo & Aidan Senzanje & Bruce A Lankford & Tafadzwanashe Mabhaudhi, 2024. "Why Do Farmers Not Irrigate All the Areas Equipped for Irrigation? Lessons from Southern Africa," Agriculture, MDPI, vol. 14(8), pages 1-18, July.
    8. Jess L. Delves & V. Ralph Clark & Stefan Schneiderbauer & Nigel P. Barker & Jörg Szarzynski & Stefano Tondini & João de Deus Vidal & Andrea Membretti, 2021. "Scrutinising Multidimensional Challenges in the Maloti-Drakensberg (Lesotho/South Africa)," Sustainability, MDPI, vol. 13(15), pages 1-22, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mabhaudhi, T. & Nhamo, Luxon & Mpandeli, S. & Nhemachena, Charles & Senzanje, A. & Sobratee, N. & Chivenge, P. P. & Slotow, R. & Naidoo, D. & Liphadzi, S. & Modi, A. T., 2019. "The water–energy–food nexus as a tool to transform rural livelihoods and well-being in southern Africa," Papers published in Journals (Open Access), International Water Management Institute, pages 16(16):1-20.
    2. Tafadzwanashe Mabhaudhi & Luxon Nhamo & Sylvester Mpandeli & Charles Nhemachena & Aidan Senzanje & Nafisa Sobratee & Pauline Paidamoyo Chivenge & Rob Slotow & Dhesigen Naidoo & Stanley Liphadzi & Albe, 2019. "The Water–Energy–Food Nexus as a Tool to Transform Rural Livelihoods and Well-Being in Southern Africa," IJERPH, MDPI, vol. 16(16), pages 1-20, August.
    3. Sylvester Mpandeli & Luxon Nhamo & Sithabile Hlahla & Dhesigen Naidoo & Stanley Liphadzi & Albert Thembinkosi Modi & Tafadzwanashe Mabhaudhi, 2020. "Migration under Climate Change in Southern Africa: A Nexus Planning Perspective," Sustainability, MDPI, vol. 12(11), pages 1-14, June.
    4. Naidoo, Dhesigen & Nhamo, Luxon & Mpandeli, Sylvester & Sobratee, Nafisa & Senzanje, Aidan & Liphadzi, Stanley & Slotow, Rob & Jacobson, Michael & Modi, Albert T. & Mabhaudhi, Tafadzwanashe, 2021. "Operationalising the water-energy-food nexus through the theory of change," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    5. Magidi, J. & van Koppen, Barbara & Nhamo, L. & Mpandeli, S. & Slotow, R. & Mabhaudhi, Tafadzwanashe, 2021. "Informing equitable water and food policies through accurate spatial information on irrigated areas in smallholder farming systems," Papers published in Journals (Open Access), International Water Management Institute, pages 1-13(24):36.
    6. Nhamo, Luxon & Matchaya, Greenwell & Mabhaudhi, T. & Nhlengethwa, Sibusiso & Nhemachena, Charles & Mpandeli, S., "undated". "Cereal production trends under climate change: impacts and adaptation strategies in Southern Africa," Papers published in Journals (Open Access) H049086, International Water Management Institute.
    7. Luxon Nhamo & Greenwell Matchaya & Tafadzwanashe Mabhaudhi & Sibusiso Nhlengethwa & Charles Nhemachena & Sylvester Mpandeli, 2019. "Cereal Production Trends under Climate Change: Impacts and Adaptation Strategies in Southern Africa," Agriculture, MDPI, vol. 9(2), pages 1-16, February.
    8. Lauri Ahopelto & Noora Veijalainen & Joseph H. A. Guillaume & Marko Keskinen & Mika Marttunen & Olli Varis, 2019. "Can There be Water Scarcity with Abundance of Water? Analyzing Water Stress during a Severe Drought in Finland," Sustainability, MDPI, vol. 11(6), pages 1-18, March.
    9. Srigiri, Srinivasa Reddy & Breuer, Anita & Scheumann, Waltina, 2021. "Mechanisms for governing the water-land-food nexus in the lower Awash River Basin, Ethiopia: Ensuring policy coherence in the implementation of the 2030 Agenda," IDOS Discussion Papers 26/2021, German Institute of Development and Sustainability (IDOS).
    10. Joel O. Botai & Christina M. Botai & Katlego P. Ncongwane & Sylvester Mpandeli & Luxon Nhamo & Muthoni Masinde & Abiodun M. Adeola & Michael G. Mengistu & Henerica Tazvinga & Miriam D. Murambadoro & S, 2021. "A Review of the Water–Energy–Food Nexus Research in Africa," Sustainability, MDPI, vol. 13(4), pages 1-26, February.
    11. Hartwig, Lana D. & Jackson, Sue & Osborne, Natalie, 2020. "Trends in Aboriginal water ownership in New South Wales, Australia: The continuities between colonial and neoliberal forms of dispossession," Land Use Policy, Elsevier, vol. 99(C).
    12. Gift Nxumalo & Bashar Bashir & Karam Alsafadi & Hussein Bachir & Endre Harsányi & Sana Arshad & Safwan Mohammed, 2022. "Meteorological Drought Variability and Its Impact on Wheat Yields across South Africa," IJERPH, MDPI, vol. 19(24), pages 1-22, December.
    13. Gill, Tania & Punt, Cecilia, 2010. "The Potential Impact of Increased Irrigation Water Tariffs in South Africa," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96425, African Association of Agricultural Economists (AAAE).
    14. Wheeler, Sarah Ann, 2022. "Debunking Murray-Darling Basin water trade myths," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(04), January.
    15. van Koppen, Barbara & Schreiner, B., . "A hybrid approach to statutory water law to support smallholder farmer-led irrigation development (FLID) in Sub-Saharan Africa," Papers published in Journals (Open Access), International Water Management Institute, pages 12(1):146-1.
    16. Nhamo, L. & Mpandeli, S. & Liphadzi, S. & Hlophe-Ginindza, S. & Kapari, M. & Molwantwa, J. & Mabhaudhi, Tafadzwanashe, 2023. "Advances in water research: enhancing sustainable water use in irrigated agriculture in South Africa," Book Chapters,, International Water Management Institute.
    17. Goldin, J. & Nhamo, L. & Ncube, B. & Zvimba, J. N. & Petja, B. & Mpandeli, S. & Nomquphu, W. & Hlophe-Ginindza, S. & Greeff-Laubscher, M. R. & Molose, V. & Lottering, S. & Liphadzi, S. & Naidoo, D. & , 2022. "Resilience and sustainability of the water sector during the COVID-19 pandemic," Papers published in Journals (Open Access), International Water Management Institute, pages 1-14(3):148.
    18. Andekelile Mwamahonje & John Saviour Yaw Eleblu & Kwadwo Ofori & Santosh Deshpande & Tileye Feyissa & William Elisha Bakuza, 2021. "Sorghum Production Constraints, Trait Preferences, and Strategies to Combat Drought in Tanzania," Sustainability, MDPI, vol. 13(23), pages 1-13, November.
    19. Bajaj, Akshi & Singh, S.P. & Nayak, Diptimayee, 2022. "Impact of water markets on equity and efficiency in irrigation water use: A systematic review and meta-analysis," Agricultural Water Management, Elsevier, vol. 259(C).
    20. Wheeler, Sarah Ann, 2022. "Debunking Murray-Darling Basin water trade myths," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(04), January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iwt:jounls:h049189. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chandima Gunadasa (email available below). General contact details of provider: https://edirc.repec.org/data/iwmiclk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.