Restoration of natural capital: Mobilising private sector investment

Abstract

This research aims to provide an analysis of the private sector's potential contribution to the maintenance of ecosystem services in South Africa. While there is widespread support for payment for ecosystem services and goods (PES), the development of markets and the making of payments are heavily constrained by a number of factors. This constraint is because there are barriers to entry and the need to facilitate the market-making process. This process could be supported by, among others, the establishment of a PES stimulation fund. It is unlikely that the PES potential would be realised without such high-level intervention and support. The fund has a very important role to play in assisting the development of the PES industry in South Africa. Its development enjoys overwhelming support, and the role of a financial intermediary is central to the success of PES.