Aquaculture Africa 2021

March 25 - 28, 2022

Alexandria, Egypt

FINANCING SUSTAINABLE SMALL AND MEDIUM SCALE AQUACULTURE GROWTH IN AFRICA

 

Harrison Charo-Karisa*, Lovin  Kobusingye, and Randall Brummett

 

 World Bank Group

1818 H Street, Washington DC

hkarisa@worldbank.org



A quaculture holds considerable potential for  sustainable growth of rural economies , employment of  youth and women,  and  food  and  nutrition security.   Currently, small and medium- scale producers  from developing countries produce most  of  the farmed fish and have fueled the rising growth seen in Africa in recent decades (Figure 1) .

 The subsistence mentality  that gripped most  African  aquaculture  at inception is waning, and, in its place, a commercial mindset spurred by an entrepreneurial environment across the value chain. Bottlenecks exist in the form of poor access to credit, lack of technical know- how,  poor access to quality inputs such as  genetically improved seed, quality feed, high cost of production, losses of produce  due to poor infrastructure,  and  marketing  challenges. The high cost of fish meal has led to a search for alternative sources including animal and plant based ingredients.  SMEs using new technologies that utilize food wastes and biproducts to produce insect-based meal are growing in number across the continent.  A few countries have initiated  genetic improvement programs  for provision of quality seed .

A market- focused  investment model with significant profit orientation  may unlock the sector and attracting investment from both the public and private sector.  Diversificatio n of products may add value,  however, increasingly informed consumer markets demand prohibitive seafood quality standards alienating SMEs . A quaculture cooperatives can bargain  for  affordable credit, lobby for conducive government policies, enhance specialization among members, assure better technical assistance through novel extension methods,  and can  find and  sustain  new markets that  fetch better prices  for fish and fish products through bulk marketing. Growing use of mobile telephony across the continent can make it easier to  collect production data and disseminate market information and technical knowledge among actors across the value chain. Tackling the challenges  facing SMEs to unlock  the potential for resilient aquaculture growth  requires appropriate government policy and regulatory frameworks and  affordable financing.