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Improving water use efficiency under worsening scarcity: Evidence from
the Middle Olifants sub-basin in South Africa
Teresa Linz, Julia Kloos and Daniel Tsegai
Abstract
With the political changes in South Africa in the early 1990´s, the South African government
introduced a reform process in the entire water sector with the goal of a more enhanced and
equitable water management system. This paper analyzes existing water allocation situations and
applies a non-linear optimization model to investigate the optimal intra- and inter-regional
allocations in the Middle Olifants sub-basin of South Africa. Results show higher benefit from inter-
regional water allocation. Reducing water supply levels to conform to the sustainable water supply
policy, it can be shown that although water supply is reduced by approximately 50%, total benefits
from water are only reduced by 5% and 11% for inter- and intra-regional allocation regimes
respectively. These results indicate that alternative water allocation mechanisms can serve as
instruments to offset for the effect s of water scarcity.
Key words: Optimal allocation, water, IWRM, Middle Olifants, South Africa
1. Introduction
Water is one of the most indispensable of all natural resources; it is essential for human beings,
economic development and biological diversity. However, many countries have to face the challenge
of rapidly growing water demands, driven by an increased population and economic growth, linked
to urbanization, industrialization and mechanization (King, 2004). The resulting water scarcity is one
of the most pervasive natural resources allocation problems faced by development planners. Hence,
water resources management turned out to
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