Economic Implications of Wetland Conversion to Local People’s Livelihoods: The Case of Kampala- Mukono Corridor (KMC) Wetlands in Uganda

Accepted 3^rd April, 2013

Uganda’s wetlands are an important stock of natural capital producing goods and services that have economic value. Despite the need to conserve them, their loss to unsustainable resource utilization activities has continued because they are considered to have little or no economic value. This study aimed at highlighting the economic importance of three wetlands within the Kampala-Mukono Corridor (KMC) and the economic implications of their degradation to the Local Administration and people’s livelihoods. Emerton et al. (1998)’s Total Economic Valuation Approach (TEV) was used to quantify selected use values of wetland benefits, drawing on the market price, replacement cost and the contingent valuation techniques. The results revealed that the KMC wetlands yield a flow of economic benefits at a minimum approximated value of US$ 3,418 M/Ha/per Year. Degradation of these wetlands would imply serious economic costs to the government and local communities reflected in high expenditures to duplicate wetland services, foregone incomes, livelihood support and alternative employment. The study recommends several strategic interventions including the use of economic incentives and disincentives, intensification of economic valuation on threatened wetland ecosystems, promotion of efficient harvesting technologies, ensuring independency of Environmental Monitoring and Regulatory Institutions, community participation in planning and enforcement of regulations.

Key words: Conservation, goods and services, total economic value, Kampala- Mukono corridor, wetlands, Uganda.