The fynbos biome of the Western Cape produces various ecological goods and services. The value of harvested products from fynbos such as flowers has been valued at ZAR76 million per year. The water quality benefits from wetlands in fynbos areas were estimated to be worth ZAR 328 million. Fire is an important element of the ecology of fynbos, necessary for the regeneration of fynbos species and maintaining biodiversity. While it differs for specific vegetation and species, the optimum fire cycle for fynbos under natural conditions is between 8 and 20 years. The encroachment of economic activity such as urbanisation, agricultural and forestry into fynbos areas are contributing to more veldfires caused by human sources. This contributes to fires in cycles of less than 8 years and/or fires in the wrong season. Invasive trees such as the Australian Acacia and Eucalyptus species contribute to greater fire intensity than would have been the case in their absence. At the same time, veldfires originating in fynbos areas create risks for spreading into adjacent areas.

An assessment of the economic costs of veldfires should therefore consider:

Too frequent fires and fires in the wrong season may negatively impact on the ecological goods and services provided by fynbos.

Fires originated in fynbos may spread into adjacent areas of economic activity (e.g. forestry and urban areas) with major economic impacts.

The cost of fire fighting services.

The cost of fire management activities by nature conservation authorities and others (e.g. construction of firebreaks, prescribed (controlled) burning of fynbos).

The (external) cost of invasive plant species.

Tentative conclusions will be made on how information on the economics of veldfires can inform decision-making on fire management and fire fighting.