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1 INTRODUCTION

1.1 Context of the project

This report, commissioned by the Food and Agriculture Organization of the United Nations (FAO) as part of Project TCP/EGY/0168 (A), in conjunction with the Ministry of Agriculture and Land Reclamation and the Ministry of State for Environment, assesses the socio-economic roles and economic values associated with Egypt’s mangroves. There are around 28 stands of mangrove in Egypt covering an area of about 500 ha, comprising two types of species: Avicennia marina and Rhizophora mucronata.

This socio-economic assessment and economic valuation aims at providing an important input into the “National Development Programme for the Rehabilitation, Conservation and Sustainable Utilization of Mangroves in Egypt”. In particular, it highlights the considerable significance of mangroves with respect to both local communities and the Egyptian economy.

1.2 Terms of reference

The terms of reference for the resource valuation specialist were as follows:

• Undertake a thorough analysis of the socio-economic roles of mangroves in Egypt

• Wherever possible, estimate the current and potential economic value of mangrove resources

• Assess the socio-economic and economic impacts of mangrove degradation on the livelihoods of coastal communities

• Provide in-service training to counterparts involving seminars

• Reporting

1.3 Methodology adopted

Due to the nature of the study, it has only been possible to undertake a “rapid appraisal” of the socio-economic roles and economic value of Egypt’s mangroves. As such, the socio-economic assessment is only a partial appraisal of key aspects. Furthermore, the economic values determined are not highly accurate; rather they provide an indication of the relative order of possible value (i.e. ballpark values). Considerable further studies will be required to validate and enhance the accuracy, robustness and completeness of the socio-economic issues and economic values (see Annex II). Despite this, the study provides a valuable first step in the continuous process of fully understanding and evaluating the importance of the many and complex values of Egypt’s mangroves.

The resource economics input comprised two visits to Egypt in 2002, between July 31st to August 13th and October 1st to October 12th. Key activities conducted were as follows:

• August 3rd: Participated in a voluntary mangrove litter clean-up, south of Safaga.

• August 4th-6th: Attended and helped to facilitate a workshop session and presented a paper on “The economic value of Egypt’s Mangroves” at Egypt’s first National Workshop on the Environmental Protection of Mangroves on the Red Sea Coast, Marriott Hotel, Hurghada.

• October 8th: Undertook a training workshop on the socio-economic assessment and economic valuation of mangroves for National Park Rangers and staff, Sharm el Sheik.

• October 10th: Presented the results and summary of this study to key decision-makers in Cairo.

• Due to group logistic issues, only eight mangrove sites could be investigated in any detail, with a further 12 of Egypt’s 28 mangroves briefly visited. However, relevant information on the remaining sites (mainly islands and those in the far south) was obtained from the other consultants and local counterparts.

• Two interviews lasting around 30-40 minutes were undertaken with Bedouin village chiefs. One at El-Ghargana, Nabq; the other at Wadi Al-Qul’an delta, Hamata.

• Numerous meetings and discussions were held with various other individuals who provided useful data, information, views and documents. Key organisations/stakeholder groups and individuals consulted are detailed in Annex I.

1.4 Structure of the report

Section 1 – Introduction: putting the study into perspective

Section 2 – Key principles: outlining the key principles of socio-economics and environmental valuation.

Section 3 – Overview of values: overview of the environmental goods and services provided by Egypt’s mangroves.

Section 4 – Socio-economic roles: discussion of the key socio-economic roles of the mangroves.

Sections 5 – 7 Values: valuation of the key direct uses, indirect uses and non-use values of mangroves, with reference to both current and potential values and their socio-economic significance.

Section 8 – Impacts to mangroves: overview of key threats to mangroves and their significance for local livelihoods. In addition, a brief discussion is given as to the benefits associated with mangrove restoration and management.

Section 9 – Conclusions and recommendations: key conclusions and recommendations of the study.

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