Issues and Options Regarding Resource Allocations and Benefit Sharing of Shared Watercourses in the SADC Region

Abstract

Most surface water sources in southern Africa are shared among countries and river basin organizations (RBOs) find it hard to resolve the challenges of resource allocation and benefit sharing. The use of shared water resources is governed by the SADC Protocol on Shared Watercourses. With increasing demand for water, countries are increasingly turning to the use of shared water resources. The main objective of this paper is to review the main issues and options for benefit sharing and allocation of shared water resources. The paper is based on a project carried out for SADC and USAID. Methods used were a desk top literature review, case studies of six river basins and results from a small survey and interviews among RBOs, SADC Water Division and ICPs. The survey and interviews showed a lack of common interpretation of key concepts such as equitable and fair use, hampering progress with resource allocation and benefit sharing. The literature review showed a shift in emphasis from resource allocation towards beneficial use and benefit sharing. However, resource allocation, benefit generation and benefit sharing need to be negotiated together in an iterative process until the most suitable and acceptable situation has been achieved. Other conclusions are: 1. All countries need to benefit from joint management; 2.increasing the benefits is important and makes compromises easier; 3. Benefit must be shared between countries, sectors and population groups; 4. Benefit sharing may be an easier way of resolving historical injustices than re-allocation of water rights. The six RBO case studies show that each river basin is unique and RBOs needs to find its own solutions for benefit sharing. Distinctive factors include: the number of riparian countries; degree of homogeneity among riparian countries; level of water use and infrastructure development; existence of prior bilateral forms of cooperation. Finally, the paper outlines a broad mechanism for benefit sharing and allocation of shared water resources based upon: a. principles of best use, sustainable utilisation, conservation, and equitable distribution; recognition of the diversity of each river basin. Resource allocation, benefit generation and benefit sharing should constitute the core of RBO negotiations. The tool of water accounts can assist in this process as they deal with water use, benefit generation and sharing between countries and economic sectors. The RBOs should undertake an assessment of the water resource to identify the stocks, uses, user costs and the benefits emanating from the watercourse. Then identify and negotiate the way of maximizing the benefits of resource allocations while equitably sharing the net benefits.