South Africa and the Environment

South Africa is one of the most biologically diverse countries in the world, with an impressive array of land and marine protected areas that benefit both the environment and the economy, including tourism and job creation. In one province alone (KwaZulu Natal), nature-based tourism provides over 80,000 direct and indirect jobs and contributes over R5 billion (about US$774 million) to GDP.

World Bank support to the environment is provided primarily through grant resources, the main source of which is the Global Environment Facility (GEF). Over the last five years, GEF/Bank projects have resulted in commitments of approximately $40 million to South Africa, with over $95 million leveraged from other sources. This support has focused on (i) conserving globally significant biodiversity, (ii) supporting South Africa's efforts to mainstream conservation into its economy, and (iii) strengthening management capacity. An example of the kind of work undertaken through GEF projects is the recently completed Cape Peninsula Biodiversity Conservation Project, which resulted in a foundation established to conserve an important natural environment in South Africa. The project also resulted in important policy reforms in South Africa, mainstreaming of conservationactivities, and further investment in a key natural and economic resource.

There are currently three GEF/Bank projects under implementation, for a total grant amount of $22 million, including a joint project with Lesotho:

• the Maloti Drakensberg Transfrontier Project (shared by Lesotho and South Africa) (US$7.9m for South Africa),
• the Greater Addo Elephant National Park Project (US$5.8 m), and
• the Cape Biodiversity Conservation and Sustainable Development Project (US$93m)

In addition, two medium-sized GEF/Bank projects are under implementation:

• the Richtersveld Community Conservation Project (US$877,000), and
• the Sustainable Protected Area in Namaqualand Project (US$748,000)

Finally, South Africa also participates in a $55 million Africa-wide project to remove obsolete pesticides from Africa -- the Africa Stockpiles program -- which has been adopted as a priority project of NEPAD, and two regional fisheries and marine protection projects are also being prepared.