Economic valuation of wetlands aims to investigate public preferences for changes in the state of the
wetland and the natural resources it constitutes in monetary terms. It provides a means of quantifying
the direct and indirect benefits that people derive from wetlands. In addition, it informs management
planning and practice about resource options, optimal allocation and also provides information for
conservation of the resource. The Makgadikgadi wetland is a unique system that mostly consists of
dry pans during most part of the year despite the fact that this year (2010), the pans were fairly wet.
This study aimed at estimating the value of groundwater recharge and community-based natural
resource management (CBNRM) activities within the Makgadikgadi wetland resource and how these
services and goods contribute to the local and national economy. The Total Economic Valuation
approach was adopted and this considers both the direct and indirect use values of the resource. In
essence, the study concentrated on one direct use value (use of resources through CBNRM) and one
indirect use value (groundwater recharge). In regards to CBNRM, three community based
organizations (CBOs) were selected for the study and static and dynamic cost benefit models for these
CBOs were developed. The groundwater recharge value was largely determined through desktop
review and interviews with stakeholders such as representatives from the Division of Groundwater
within the Department of Water Affairs. The results indicate a small positive contribution of CBOs
towards the economy of Botswana and a high potential for communities to derive substantial benefits
from the projects because currently benefits realised by communities are limited. CBOs involved in
joint venture partnerships with tourism and hunting enterprises benefit more from utilizing the
wetland’s resources. With regards to groundwater recharge, recharge often occur in areas away from
the physical location of the wetland and may not be easily attributable to the wetland. However, the
study assessed the value taking into consideration the various sectors which rely on the groundwater
resource. The groundwater recharge value is significant (about BWP 10 million) but lower when
compared with the value generated by the Okavango delta (BWP16 million). Given future increases in
water demands, groundwater abstraction will exceed recharge thus hampering the availability of the
resource for the future generations and maintenance of the environment.