103666 Improving Livelihoods and Creating Wealth through Sustainable Fisheries Improving Livelihoods and Creating Wealth Through Sustainable Fisheries and Aquaculture in Africa Africa can leverage its rich marine and freshwater resource endowments and maximize sustainable and inclusive growth by investing in improved management systems and appropriate infrastructure. By 2030, global fish demand, driven by growing population and income, is expected to rise by 40 million tons, and to consistently continue growing over the coming decades. As described in the Policy Framework and Reform Strategy for Fisheries and Aquaculture in Africa prepared in May 2014 by the African Union NEPAD, there is a strong opportunity for Africa to play a crucial role in the sector. This will be done in two ways: through • capture fisheries with improved management Figure 1 – Status of fish exploitation Source: SOFIA 2014, FAO systems and enhanced value chains; and • investments in sustainable aquaculture that would sector’s contribution at the production level, not the enable to meet regional and global shortfalls in food multiplier effects on the economy and the contribution fish supply, and capitalize on the expected higher from foreign vessels’ activities which can be significant. seafood prices. In 2009, e.g., fisheries’ direct contribution to Seychelles’ GDP was estimated at 0.7% while if multiplier effects Fisheries already play a significant social and are taken into account, this contribution would raise nutritional role in Africa. The sector represents a to at least 7.9%. Second, an increase in GDP could key social safety net, contributes to food and nutrition be obtained by augmenting fishing activities which security, and provides jobs, in particular for rural can result in the long term in decreased resource coastal populations, which are among the poorest and productivity, and subsequently the sector one. most vulnerable. On average, fish and fish products Increases in sector GDP or in employment should be account for 18% of animal protein intake by African complemented by indicators illustrating the sector’s consumers, and the sector provides employment to social, economic and environmental sustainability, over 12 million people (58% in the fishing and 42% in such as the state of fish stocks, long-term profitability, the processing sector). While fishing jobs are almost revenue distribution, and good governance. entirely taken by men, 59% of the processing work is done by women. Although systematic estimates are not Over the past decades, Africa’s capture fisheries’ available, employment multiplier effects are remarkable: production has grown rapidly. To maintain the sector’s for example, for every fisherman job, 1.04 additional productivity, it is crucial to reinforce its governance and onshore-job is created in Mauritania, while this ratio management. Simply put, capture fisheries in Africa face reaches 3.15 in Guinea, illustrating the potential for the familiar problem of managing a common property further job creation through value chain development. and renewable resource – too many boats and too many fishers chasing too few fish. The consequence Currently, fisheries and aquaculture directly is biological degradation of fish resources (fig. 1), contribute $24 billion to the African economy, and substantial economic loss. Globally, capture representing 1.3% of the total African GDP in 2011. fisheries’ catches stagnate at about 93 million tons GDP figures, however, under-represent the contribution per year (fig. 2), and gains in fishing production and of fisheries. First because GDP only captures the economic benefits are only expected through improved Figure 2 - Fish and Aquaculture Supply: World and Africa, 1990-2012 Source: SOFIA 2014, FAO management and governance. At the global level, the tons in 2010 to 93.6 million tons in 2030, and therefore economic loss from poor fisheries governance and represents a key instrument to meet the fish supply gap. management amounts to $50-100 billion each year. In the 2000-2012 period, African aquaculture was among As African fisheries production continues to increase, the fastest growing at global level (11.7% per year on attention is needed to avoid overexploitation, which in average). If adequate conditions are created, the industry turn would decrease productivity and socio-economic could have the potential to catch up on the development benefits as observed elsewhere in the world. delays observed in previous decades (fig. 2). Currently Africa represents a small share of the Sustainable aquaculture and improved fisheries global fisheries and aquaculture sector, producing management and governance could make the sector just above 9 million tons annually, or 5% of global become a highly profitable economic enterprise, able production. It suffers from supply deficit, and depends to support the economic and social development on imports. Due to the fast increase in population and of Africa. With rising global demand for seafood, the per-capita income, demand for fish and seafood in the potential profits in this sector will be high over the next region is expected to increase by 30% by 2030. If no few decades, and aquaculture will play an important role action is taken, the gap will likely be filled by imports, in meeting the escalating global and regional demand. causing a toll on foreign exchange. The ratio of import This clearly opens a wide window of opportunity for to fish consumption in sub-Saharan Africa is estimated Africa to take. The World Bank estimates that improved to rise from 4% in 2000 to nearly 34% in 2030. Again, if fisheries governance and resource management could no action is taken, per-capita fish consumption in sub- generate at least an additional $2-4 billion per year Saharan Africa is projected to decline at an annual rate in sustainable benefits. Additional multiplier effects of 1 percent or 5.6 kilograms by 2030, impacting food and impact on employment could be brought through security and nutrition. value chain development. A sustainable and inclusive development of the fisheries sector requires good Aquaculture is the fastest growing food-producing governance, transparency, and accountability in the form sector that could help meet increasing demand and of reliable contracts and access allocation. Together, future supply gap. Between 1990 and 2011, the global these will support shared prosperity by avoiding rent- aquaculture production grew at an annual average rate seeking, transfer-pricing practices, corruption and illegal of 7.8% (fig. 2) - compared to 0.9% for beef, 2.1% for fishing. pork, 4.5% for poultry, and 1.4% for cereals. Aquaculture production is expected to increase from 57.8 million Africa is now at a crossroads to determine the future of The West Africa Regional Fisheries Program (WARFP), its fisheries and aquaculture sector. Under a “business covering coastal West Africa from Mauritania to Ghana, as usual” scenario, the fisheries sector would continue has invested $158 million over the past six years with to generate low profits or losses. This undermines its an additional $70 million in the pipeline. The South West macroeconomic contribution, even if it remains an Indian Ocean Fisheries Governance and Shared Growth important source of job creation and improved livelihoods. Program (SWIOFish), covering East Africa and neighboring Another future is possible for the sector. One where, under island countries, will start with a first investment of $91 countries and regional leadership, growth and job creation million and has $95 million in the pipeline. Other programs would spur from greater fish resources management, such as the Global Program on Fisheries (PROFISH), a fisheries value chain development, better governance, multi-donor trust fund, and a “readiness facility” under adequate benefit sharing, investments in suitable planning, also provide resources for project development infrastructure and sustainable aquaculture. and implementation, as well as knowledge creation in sustainable fisheries and aquaculture. The World Bank The World Bank supports African nations in their remains eager to further support countries’ agenda to commitment to invest in sustainable fisheries and develop sustainable and inclusive fisheries and seafood aquaculture, as they represent crucial means to value chains. promote inclusive growth and end extreme poverty. Selected World Bank Publications – Africa Specific 1994 Islamic Republic of Mauritania Fisheries Sector Review 2009 Seychelles Competitiveness of the Tuna Cannery 1998 Integrated Coastal Zone Management Strategy for Ghana 2010 Mauritania Policy Note 2003 Mauritania Fisheries DTIS 2010 Republic of Seychelles: Technical Assistance for Tuna Industry Management 2004 Guinea Bissau Fisheries Sector Strategy 2011 Cameroon Sustainable Fisheries Sector Strategy 2005 Senegal Fisheries Sector Strategy 2011 Implementation Strategy to Prepare for the Management 2005 Ghana Natural Resource Management Study of coral Reefs in the Western Indian Ocean for Climate Change 2005 Study of the Costs of Compliance with Export Standards in the Senegalese Fisheries Industry 2012 Côte d’Ivoire – The Growth Agenda: Building on Natural Resources and Exports 2007 South Africa Economic Contribution of Fisheries 2012 Cameroon – Summary Report of the Economic and 2007 Sierra Leone Sustainable Fisheries Sector Strategy Sector Work in the Fisheries Sector 2008 Liberia: Diagnostic Trade Integration Study – Fisheries 2013 Comoros Policy Notes including fisheries 2008 Mauritania Sustainable Fisheries Strategy 2014 Madagascar Policy Notes including environment, natural 2008 Cape Verde Fisheries Sector Strategy Assessment resources and fisheries 2009 Madagascar Fisheries Strategic Note 2015 Mozambique Fisheries Policy Notes & Economic Model 2009 Fisheries in Zambia: an undervalued contribution to 2015 Economic, Social and Environmental Evaluation of poverty reduction African Small-Scale Fisheries 2009 South West Indian Ocean WIOFish database 2015 Madagascar Fisheries : Diagnostic Study of the Commerce Integration – DTIS Contacts: Bérengère Prince Xavier Vincent (202) 473-0536 (202) 473-2426 bprince@worldbank.org xvincent@worldbank.org