The success of commercial aquaculture in Africa has largely focused around the growth of large, internationally-invested, vertically integrated companies. But for aquaculture to fulfil its potential there needs to be strong development of small and medium enterprises (SMEs), both at the farm and through service provision. We must practice African aquaculture with a big contest of ideas, devoid of “there is us (stagnating) and there is them”.
A critical part of the supply chain is fingerling supply. Governments and international donors have spent millions of dollars trying to kickstart smallholder aquaculture industries in many African countries, but with little lasting success. Diverse commercial sectors in Nigeria and Egypt have grown because of the concentration of producers in specific areas. But how do you grow an industry when the customer (farmer) base is dispersed?
Experience from East Africa shows that you need a mix of opportunities. Being able to supply into some of those donor-funded projects helps hatcheries (and other service providers) to survive. Sporadic supplies to vertically integrated farms, when they have production limitations, is also useful business. But hatcheries need a diverse customer base that demands product throughout the year. The growth of several independent, medium-scale cage operations has created a meaningful market. Some ponds farmers are now regularly demanding fingerlings. The development of distribution networks provides additional business opportunities and gives smaller-scale producers confidence that fingerlings will be available more easily and at competitive prices. Has the industry now reached a scale and diversity that can sustain commercial hatchery and fingerling distribution businesses?