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04 April 2019 | Story Leonie Bolleurs | Photo JohanRoux
Prof Chapagain  Inaugural
Prof Ashok Chapagain, Senior Professor in the Department of Agricultural Economics, recently delivered his inaugural lecture on the university’s Bloemfontein Campus. The title of his lecture was Counting Water: Simple yet Complex. From the left are: Dr Engela van Staden, Vice-Rector: Academic; Prof Ashok, Dr Frikkie Maré, Head of the Department of Agricultural Economics; and Prof Danie Vermeulen, Dean of the Faculty of Natural and Agricultural Sciences.

Virtually every economic sector, from agriculture, power generation, manufacturing, beverage, and apparel to tourism, relies on fresh water to sustain its business. Yet, water scarcity and water-pollution levels in river basins around the world are increasing due to growing populations, changing consumption patterns, and poor water governance.

These are the words of Prof Ashok Chapagain, Senior Professor in the Department of Agricultural Economics at the University of the Free State (UFS), who recently delivered his inaugural lecture on the university’s Bloemfontein Campus. The title of his lecture was Counting Water: Simple yet Complex.

He believes that in a world of increasing interconnectedness, equitable and sustainable resource management has become not only a local phenomenon, but also a global one. “The critical factors in managing these resources lie at both ends of the production and consumption chains. The interlinkages between agriculture, trade, economic, and energy policy and water-resources management must be understood,” he said.

Water footprint from farm to cup

The water footprint of a product is the volume of fresh water used to produce the product, measured over the various steps of the production chain. Water use is measured in terms of water volumes consumed or polluted, e.g. a cup of black coffee would take 140 litres of water as a result of water used in various processes, from the farm to the cup! 

Prof Chapagain said: “With the emergence of the water footprint concept, the public could for the first time see that the issue is not only related to direct water use in their houses, but also to their consumption of goods and services, such as food, fibre, and electricity. For example, a developed nation would typically state their water consumption data as around 100-200 litres per capita per day. This information is misleading, as it does not capture the massive amount of water needed to produce food, goods, and services consumed by the nation, which makes the daily water consumption a whopping 3 000-8 000 litres in these developed nations. Consumers, governments, and businesses are beginning to understand how their interests could be sustained in the long run, using this new approach to water-resource management.”

He also spoke about water as an economic enabler. According to him, harnessing the full benefit of water is constrained by three limits: hydrological limits, limits in production efficiency, limits and risks in externalising water footprints. He further elaborated, “Each river basin is unique with respect to amount of rainfall and pattern, rainfall-runoff relation, total available runoff, environmental flow requirements, groundwater recharge, etc. The actual available quantity of water is determined by all these parameters. Hence, there is a hydrological limit to water use in a river basin/aquifers”. He said: “On the other hand, making a process more efficient comes at a price, marking a limit on local efficiency gains. Similarly, importing virtual water to relieve pressure on local water resources would require second-order resources such as foreign currency, and a political will to move from a ‘water and food self-sufficiency’ policy towards a ‘water and food security’ policy. Enhancing the global water-use efficiency by means of trade has socio-economic limitations.” His current research focuses on unravelling these limits to growth, and on developing a generic analytical framework to find optimal solutions to growth under these water limits.

Trade can relieve the strain

Regarding the latter, he said trade in water-intensive goods and services could help relieve the strain on local/national water resources. For example, Switzerland covers merely 18% of its water demand from its internal water resources, i.e. 82% of it is external! South Africa’s external water footprint is only 22% of the total water footprint of national consumption. Hence, the scope of international trade to help alleviate local scarcity is limited by the availability of second-order resources such as foreign exchange, institutional capacity, socio-political context, etc. 

However, globalisation of fresh water brings both risks and opportunities. “Although national water resources could be saved for best alternative uses, the risks of a growing external dependency and the associated risks related to events elsewhere, are often not visible. These water-intensive production processes are vulnerable to the availability of water at the various locations where the production processes take place. The vulnerabilities may result from a range of factors – from reduced river flows, lowered lake levels, and declined ground-water tables to increased salt intrusion in coastal areas, pollution of freshwater bodies, droughts, and a changing climate,” he said.

Water footprint assessment

Prof Chapagain also touched on the Water Footprint Assessment; he believes it has provided a sound method to analyse the water footprint in the relevant context and formulate appropriate response strategies. “The water-footprint assessment breaks down the different water-footprint components and checks the sustainability of these components against three sets of criteria: environmental, economic, and social. The application of the Water Footprint Assessment has evolved from basic quantitative studies to a powerful advocacy tool that can support decision-making and policy processes and help mitigate water-related business risk.

“Counting water drops is simple, yet unravelling the underlying complexities is the key! I count on you to start by counting water drops in counting for sustainable growth,” he concluded.

News Archive

Guest lecture: Mr Pretorius, CEO of McCarthy Limited
2004-11-05

The challenges facing business leaders in a rapidly changing South Africa

“The world we used to know does not exist anymore. Leaders are continually dealing with crisis and opportunities, in a high-pressure environment,” said Mr Brand Pretorius, honorary professor from the University of the Free State , delivering his 13th guest lecture on the challenges facing business leaders in a rapidly changing South Africa .

Mr Pretorius, CEO of McCarthy Limited, identified certain trends which are responsible for changes to the South African business environment. He said the South African business environment is ever-changing, fast moving, complex and unpredictable. “As business people we have to deal with the impact,” he said.

“Years ago we were globally isolated. Now we live in a shrinking borderless world with crumbling trade barriers. Globilisation of our economy is accelerating. For South African business leaders this creates a sea of export opportunities,” he said.

Although there are ongoing demands for substantial profit growth from shareholders, the days of focussing only on their interests are gone, said Mr Pretorius. Stakeholder commitment now enjoys high priority and business leaders have to deal with the challenges accompanying black economic empowerment and employment equity.

Customers are also well-informed and demanding. Business leaders could easily loose the loyalty of their customers because of a hyper-competitive environment with an oversupply of goods and services.

Mr Pretorius stated that staff want to be involved and are looking for meaning in their workplace. Employers also have to deal with HIV/Aids in their workplaces. Trauma, absenteeism and financial implications could have a great effect on the viability of a business.

Against these changes Mr Pretorius pointed out the challenges business leaders are facing. In doing so a number of questions arise. The external business climate is characterised by turbulence and change. Internally there is a need for stability and meaning. How do we handle both challenges effectively?

Because of changes strategy decay is taking place and past strategies become irrelevant. Mr Pretorius said that business leaders need to modify their business models to prevent the downfall of their companies.

It is important for leaders to know what is happening in their world. “Continuous innovation is a critical success factor. The reality is that innovation is the only insurance against irrelevance,” he said.

Because of a changed environment leaders must perform and transform, simultaneously. How do we strike a balance between focused transformation and the achievement of world class performance, asked Mr Pretorius? “We need to bring about meaningful and sustainable empowerment, in order to create an inclusive economy and society. Leadership and management profiles should reflect the diversity of our teams, however at the same time every effort should be made to stop the brain drain and retain the expertise of experienced white managers.”

He also stated that leaders have an important role to play in terms of employment creation and corporate caring. “Sustainable stability and prosperity will not materialise without efforts in this regard.”

Mr Pretorius said that above challenges could be addressed by developing the ability to focus on creating a better future, rather than defending the past, a long-term vision, facing new realities, enhancing the value of brands and mobilising IT and the Internet to serve the business and customers better.

Retaining a positive vision of the future, embracing change and transformation, building your business according to the right principles and values and aspiring to be the best are some of the guidelines, according to Mr Brand, for future business success. He stated that creating a value advantage above one’s competitors, customer satisfaction and retention and inspirational leadership will add to the success of one’s business.

“We are indeed living in the era of the ultimate challenges, but also the ultimate opportunities. Let me clearly state that I have hope – in my view the tide has turned. Every day I experience small miracles inspired by ordinary people making an extraordinary difference,” said Mr Pretorius.

 

Media release
Issued by: Lacea Loader
Media Representative
Tel: (051) 401-2584
Cell: 083 645 2454
E-mail: loaderl.stg@mail.uovs.ac.za
5 November 2004

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