Sustainable Asset Valuation of Waterway Rehabilitation in Cape Town, South Africa
Summary
The Nature-Based Infrastructure Global Resource Centre conducted a cost-benefit analysis of nature-based infrastructure (NBI) in Cape Town's Diep/Sand River and Zeekoe catchments. The study finds that NBI interventions—such as creating retention ponds, establishing wetlands, and removing invasive species—offer significant economic returns, with benefit-to-cost ratios up to 2.07 and net benefits reaching ZAR 133 million over 25 years. These gains are primarily driven by avoided costs in dredging and canal refurbishment, reduced flood damages, and the creation of over 60 local jobs annually. The analysis indicates that NBI is particularly valuable under pessimistic climate scenarios with high flood risks, providing a cost-effective alternative to grey infrastructure upgrades.
Key insights
- Nature-based infrastructure (NBI) interventions in Cape Town provide strong economic returns, achieving benefit-to-cost ratios of up to 2.07 and net benefits as high as ZAR 133 million over a 25-year period.
- NBI reduces long-term infrastructure costs by avoiding up to ZAR 55 million in dredging and canal refurbishment across the studied sites by restoring natural hydrology and reducing sedimentation.
- In the Diep/Sand River catchment, NBI investments yield approximately 2 ZAR for every 1 ZAR invested over 25 years, resulting in ZAR 121 million in net benefits from avoided costs and environmental, social, and economic gains.
- In the Zeekoe catchment, NBI investments yield ZAR 1.56 in benefits for every 1 ZAR invested, totaling approximately ZAR 68 million in net benefits over 25 years, based on an 8% discount rate and an optimistic climate scenario.
- NBI interventions provide social and climate benefits, including the creation of more than 60 local jobs annually and increased value under pessimistic climate scenarios due to high avoided flood damages.
Cite the original document
- APA
- Bechauf,, H. C. (2025). Sustainable Asset Valuation of Waterway Rehabilitation in Cape Town, South Africa. International Institute for Sustainable Development. https://www.iisd.org/publications/report/waterway-rehabilitation-cape-town-south-africa
- Chicago
- Bechauf,, Henri Contor,Ronja. Sustainable Asset Valuation of Waterway Rehabilitation in Cape Town, South Africa. International Institute for Sustainable Development, 2025. https://www.iisd.org/publications/report/waterway-rehabilitation-cape-town-south-africa.
- Wikipedia
- {{cite report |last1=Bechauf, |first1=Henri Contor,Ronja |title=Sustainable Asset Valuation of Waterway Rehabilitation in Cape Town, South Africa |publisher=International Institute for Sustainable Development |date=23 July 2025 |url=https://www.iisd.org/publications/report/waterway-rehabilitation-cape-town-south-africa |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{bechauf2025sustainable, author = {Bechauf,, Henri Contor,Ronja}, title = {{Sustainable Asset Valuation of Waterway Rehabilitation in Cape Town, South Africa}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = jul, url = {https://www.iisd.org/publications/report/waterway-rehabilitation-cape-town-south-africa}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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