Designing and implementing an incentive scheme

A pillar of restoration efforts has been the design and implementation of a payment for ecosystems services (PES) scheme in the Mngeta catchment. Communities living upstream are helped to conserve water to secure enough downstream flow for the smallholders, who depend on rice farming. These farmers are linked to the Kilombero Plantations Company Ltd. (KPL) for access to technology to improve their productivity and access to markets.

AWF brought together village land use committees, smallholder associations, Water User Associations, the Rufiji Basin Water Office, KPL and NGOs, such as the Tanzania Forest Conservation Group, to develop the PES scheme. Local government authorities are also involved and support the process. Involving such a diverse group of stakeholders is critical to developing a scheme that is realistic, sustainable and accountable.

 

KPL was keen to establish relationships with upstream forest communities to protect water sources for power and irrigation.  

The aim is to test this scheme and scale it up across key water basins in SAGCOT, but a potential risk is that upstream communities do not receive enough incentive to reduce deforestation or stop other activities that impact water flow and quality.

 

The indications are that this model is applicable to other value chains and there are partners willing to engage.