OCEANS ECONOMY

Aquaculture

20 July 2018

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HEADLINES 2019: SA economy reaps the rewards of Operation Phakisa

“Jobs in Aquaculture sector seen

as quality jobs,

improving livelihoods

in rural communities….”

““…exciting momentum built in

Operation Phakisa evidenced by

Aquaculture’s inclusive

growth…”

“…experts estimate the revenue

contributed by Aquaculture

to South Africa’s economy to be as

much as R 3 Bn…”

“…The Aquaculture sector in

South Africa now employs

15,000 people in direct

and full time jobs….. “

“…to Aquaculture in South African has

shown strong growth in 5 years, with

production from 2014 up 5

fold to 20,000 tonnes…”

Abalone

Oyster

Finfish

Mussels

SOURCE: Aquaculture Lab

The Lab aspires to catalyse growth in the sector by scaling up the sector

as an initial step to sector development

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AQUACULTURE OPERATION PHAKISA INITIATIVES,

developed during the Lab (October 2014)

SOURCE: Aquaculture Lab

Regulations

Skills

Market

Funding

Selection and Implementation of Catalyst Projects1

Inter-Departmental Authorisations

Committee3

2

Capacity building and skills development

Legislative reform 4 Globally recognised

monitoring and

certification system

8 Government Preferential

Procurement

Coordinated industry-wide

marketing efforts7

Aquaculture Development Fund5

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9 Aquaculture Development Zone (New)

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AQUACULTURE KEY PERFORMANCE INDICATORS

PROJECTS

Total Phakisa Aquaculture Projects = 35 (26 in production, 9 in planning stage)

2017 LAB PROJECTIONS (*data still to be collected and analysed):During the 2016/2017* financial year as per the 3 feet plans, a projected additional investment of R890

million (Government and Private) will unlock an additional 640 direct jobs, 6500 tons production and

increase turnover across the 35 projects to over 770 million per annum. *The actual data is will be

collected and analysed during Feb- June 2018.

• By end of 2016, total actual investment committed to Operation Phakisa Aquaculture Projects was over R690 million, of which over R227 million was from government.

Investment (2016)

• 3 500 tons (Operational Phakisa Projects Production) Production (2016)

• SMMEs = 15+

• Cooperatives = 1

• Average BBBE = < 4Transformation (2016)

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DIRECT ON-FARM JOB CREATION (Verification underway) :

Total jobs on the 26 farms in 2016 1 806 Disaggregated jobs (of Total

jobs on farm):

o Females (502) 28%

o Youth (830) 46%

o African black (1093) 61%

o Coloured (558) 31%

o Disabilities (15) 1%

o Veterans (1) 0.05%

Previous total jobs on 23 farms in

2015

1550

New jobs created in 2016

Additional existing jobs from 3 new

projects

171

85 (Karoo Catch,

Salmar Trading,

Aquafoods)

TOTAL NEW JOBS SINCE 2014: 301 (in 2015) +171 (in 2016) = 472 = 56% of Lab Estimate

(page 40)

AQUACULTURE KEY PERFORMANCE INDICATORS (2016).

EMPLOYMENT (2016)

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Progress of Aquaculture Lab

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24 ORIGINAL AQUACULTURE PROJECTS

Coastal provinces

SMME’s (15+)

6 projects removed, placed onto business opportunitiesVentersdorp Catfish, ADZ Ventersdorp, Algoa Bay Yellowtail, Oceanwise ELIDZ and Southern Atlantic,

Paternoster Oyster

Inland Provinces

Western Cape

Eastern Cape

Kwazulu

Natal

Free StateNorthern

Cape

North

West

Mpumalanga

Limpopo

East LondonSaldanha

Overberg

Hondeklip Bay

Algoa Bay

Doring Bay

Gauteng

SALDANHA BAY

New farm: Molapong Cages

Expansion of Blue Ocean Mussels

Expansion of Saldanha Bay Oyster

OVERBERG

Expansion of Roman Bay

Expansion of Abagold

Expansion of Marine Growers

Expansion of HIK Abalone

RICHARDSBAY

New farm: Richards Bay Sea Cage Farming

Phase 1 (6-12 months implementation)

Phase 2 (12-24 months Implementation)

Phase 3 (2-4 years implementation)

DORING BAAI

Expansion of Doring Bay Abalone

JACOBSBAAI

Expansion:Jacobsbaai Sea Products

HONDEKLIP BAY

New farm: DCA Ranching

Expansion of DST Abalone Hatchery

AMATIKULU

Expansion of Amatikulu ornamentals

New Farm: Amatikulu Kob (ADZ)

PORT ELIZABETH

New: Wild Coast Abalone Ranching

HAGA

Expansion: Wild Coast Abalone Farm

HAMBURG

Expansion of Hamburg Oyster farm

New farm: Hamburg Kob

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17 NEW AQUACULTURE PROJECTS SINCE 2014

SMME’s (15+)

Western Cape

Eastern Cape

Kwazulu

NatalFree State

Northern

Cape

North

West

Mpumalanga

Limpopo

Saldanha

Port Elizabeth

Overberg

Gauteng

Coastal provinces Inland Provinces

Graaf-Reniet

Kleinzee

SALDANHA

Exp: Blue Sapphire Pearls

Exp: Imbaza Mussels

Exp: African Olive Trading

Exp: Aqua Foods SA

New: Requa Mussels

New: Chapmans Mussels

New: Xesibe

Exp: Salmar Trading

New: Oystercatcher

New: Southern Atlantic Sea farms

Exp: West Coast Oyster Growers

Exp: West Coast Aqua

PORT ELIZABETH

Exp: Zwembesi (oyster)

GAUTENG

New: Vaal (tilapia)

KLEINZEE

Exp: Really Useful Investments

GRAAF RENIET

Exp: Karoo Catch

Phase 1 Phase 2 Phase 3

HERMANUS

New: Hermanus Salmon

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Aquaculture Development Bill:

• The Bill was tabled on 2 May 2018 to Cabinet and is currently

under consideration by the National Assembly in Parliament.

Strategic Environmental Assessment (SEA):

http://aquasea.csir.co.za/

Norms and Standards for Abalone

• Norms and Standards for Abalone were gazetted in Feb 2016 but will most likely be incorporated

within the SEA process.

Coastal Discharge Permit

• Revised GDA conditions have been submitted to minister of the DEA to publish for comment.

Alien and Invasive Species Regulations

• The revised regulations were published on the 16th of February 2018.

INITIATIVE 2: LEGISLATIVE REFORM

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INITIATIVE 3: INTERDEPARTMENTAL AUTHORISATIONS

COMMITTEE (IAC)

Working group established since September 2015.

Streamlining authorisations:

• Outcome of the IAC meeting 28th of August 2017 includes

creation of a project management centre for aquaculture

authorisation at the DAFF to streamline applications in line

with the review. Submission to be drafted to relevant DG’s.

Access to land:

• The resolution of six (6) additional leases still outstanding for over a year has been escalated.

• Further meetings held between DPW and DAFF were held on the 11th of October 2017 and DG to

DG meeting was held on 5th of Feb 2018.

• DPW has invited DAFF to be part of leases application evaluation committee. DPW indicated that

the Leasing Framework but no progress to date.

Access to sea space:

• Seven leases was advertised by Transnet National Ports Authority in Saldanha on the 30th of March

2017 but yet to be finalized .

• 100 ha of water space was advertised for aquaculture in 9th of July 2017 in Port Elizabeth.

• Lease allocation of new water space in Saldanha needs to be fast tracked.

IAC

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MAPPING OF AUTHORISATIONS REQUIRED FOR

AQUACULTURE

LEASES/ LAND/ PRE-

APLICATIONEIA/ WUL/PERMITS

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INITIATIVE 3: INTERDEPARTMENTAL AUTHORISATIONS

COMMITTEE (IAC) – Cont.

Environmental Authorisations issued for Phakisa Project to

date:

• Five Environmental Impact Assessments (EIA) approved

• Four coastal discharge permits were issued.

• Four biodiversity risk assessment (Barramundi, Coho and

King Salmon and Sturgeon).

Saldanha Bay Aquaculture Development Zone EIA

• The Environmental Authorisation was received on the 8th January 2018. Three separate

authorisations have been issued. Four appeals received (appeal process closed on 5th

February 2018,) and DAFF has responded to the appeals (5th March 2018). It is anticipated

that the appeals decision will be received in May 2018.

Algoa Bay ADZ:

• Bilateral’s are underway with TNPA and DEA regarding additional alternative sites to consider.

• A Basic Assessment needs to be undertaken, including new alternatives.

COEGA ADZ:

• On the 7th February 2018 Department of Environmental Affairs (DEA) has granted an integrated

environmental authorisation for the development and operation of the Coega Land-Based ADZ

in the Coega IDZ.

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INITIATIVE 4: ESTABLISHMENT OF A GLOBALLY

RECOGNISED MONITORING AND CERTIFICATION SYSTEM

Certification framework

• DAFF is appointing specialists to develop a certification

framework for aquaculture products in RSA.

Standards

• DAFF and National Regulator for Compulsory Standards

(NRCS) are working on Dried Abalone Standard.

EU Export approval:

• A National Residue Programme was developed and implemented for abalone, finfish and

bivalve as per the EU findings but this was not approved by the EU due to concerns around

laboratory capacity and verification.

• EU certification is important as increasingly other countries are using the EU as a

benchmark.

• DAFF is working with relevant departments and laboratories to set up MOU and validate

laboratory and tests.

Sea Urchin export

• Risk assessment underway on cultured sea urchins for export purposes.

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INITIATIVE 5: AQUACULTURE DEVELOPMENT FUND

The ADF Working Group is made up of the following key Development

Funding Institutions (DFI’s) and departments: Agriculture, Forestry &

Fisheries: CASP & Masifa Fund; Industrial Development Cooperation

(IDC); LandBank; Eastern Cape Development Corporation (ECDC);

Eastern Cape Rural Development Agency (ECRDA); Science &

Technology; Jobs Fund; National Empowerment Fund; Trade & Industry;

Small Business Development; National Treasury Government Technical

Advisory Centre (GTAC)

Aquaculture Development Fund Model (implementation plan)

• Meeting was held with TIA (Nov 2017) and IDC (Oct 2017) to present a proposal for focus review

of new applications.

• Submission & MOC approved by DAFF DG to be sent to DFI’s.

• Met with MAFISA (Micro Agricultural Financial Institutions of South Africa) on the 22 February

2018 to discuss funding for small scale farmers development and clustering. Budget/ estimates

for the development of clusters was drafted and submitted to MAFISA.

Aquaculture Species Feasibility studies:

• Completed: marine finfish, oyster and mussels.

• Underway: tilapia, trout, abalone, catfish, freshwater ornamentals, marron crayfish & aquaponic

systems. (Completed peer review workshops in Cape Town and Pretoria)

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INITIATIVE 6: CAPACITY AND SKILLS DEVELOPMENT

Skills working group is established and active.

A skills and needs analysis assessment of the sector has been completed and is to be adopted by

the skills working group. It was funded by AGRISETA and the National Skills Fund (DHET) through

SAIMI (South African International Maritime Institute). In order to address the scarce aquatic

veterinarian skills and services available in South Africa, DAFF and Stirling University have signed an

agreement for training of aquatic vets and aquaculture specialists. Five (5) veterinarians began training

from Sept 2017 for a year. Two DAFF staff members are also attending three months training at Sterling

(Jan to March 2018).

Aquaculture qualifications (through AGRISETA):

• Aquaculture Farmer and Aquaculture Farm Assistant have been completed, submitted to QCTO

(Quality Council for Trades & Occupations) and published for comment in February 2018.

Subsequently need to be submitted to SAQA (South African Qualifications Authority).

Gariep Aquaculture Training Centre

• On gonging training.

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INITIATIVE 7: COORDINATION FOR INDUSTRY WIDE

MARKETING EFFORTS

Marketing and awareness

DAFF is appointing specialists to:

1. Develop a Public Awareness and Marketing Strategy for

aquaculture products and the sector in RSA.

2. The development of a Transformation Model for the aquaculture

sector

3. Recipe book for aquaculture species being finalized for print.

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INITIATIVE 8: PREFERENTIAL PROCUREMENT OF

AQUACULTURE PRODUCT

Research:

• Research on the current fish consumption of state

owned entities and departments is currently

underway. Information has been received from Dept.

of Correctional Service and SAA (Airchefs).

Engagement:

• Dept. of Basic Education (DBE) has expressed interest to meet in 2018 and engage on the

matter. While each province procures their own product, the DBE provides guidelines in this

regard.

• DAFF is also trying to engage with Department of Health (DoH) on the matter.

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INITIATIVE 9 (NEW): DEVELOP AND IMPLEMENT

AQUACULTURE DEVELOPMENT ZONES

In order to promote investment into the sector and create an enabling environment, the DAFF has

embarked on a process to establish ADZ’s.

Amatikulu Aquaculture Development Zone

• The EIA commenced on the 1st of June 2017. Initial

concept document, site report and specialist reports have

been undertaken. Pre-consultation occurring with the

relevant authorities.

Richardsbay Aquaculture Development Zone:

• Specialist being appointed to conduct the feasibility study.

Qolora Aquaculture Development Zone

• Received extension on environmental authorisation (8th November 2017) and coastal lease (7th of

Feb 2018).

• DAFF submitted proposals to MOFCOM for funding of studies and projects and met on the 9th

February 2018 to discuss way forward.

Van der Kloof Aquaculture Development Zone

• All the authorisation in place, stocking planned for August 2018.

Saldanha Bay and COEGA ADZ (Still in EIA process)

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Thank You

Kishan Sankar

Operation Phakisa Delivery Unit

KishanS@daff.gov.za

021 402 3631

Tshepo Sebake

Sustainable Aquaculture Management

TshepoSE@daff.gov.za

021 402 3116

Department of Agriculture, Forestry and Fisheries