Creating a conducive investment

environment

Operation Phakisa: Oceans Economy

Belemane Semoli

Aquaculture Investment Seminar

27 March 2019

Global demand for fish products is projected to grow by 48%

in 2030 years, with Aquaculture expected to meet more than half

Fish consumption to increase with growing world population and

increasing diet concerns

Fish consumption forecast

Million tons

Influencing Factors of Demand

Rising global

population

▪ Global population growing at 1.1%

pa, projected to reach 8.6 billion in

2033

▪ Static capture fisheries production

unable to meet rising global demand

Movement

towards

healthier diets

in wealthier

countries

▪ Fish provides not only high-value

protein, but also a wide range of

essential micronutrients, including

various vitamins (D, A and B),

minerals (including calcium, iodine,

zinc, iron & selenium) and

polyunsaturated omega-3 fatty acids

▪ FSA recommends at least 2 portions

of fish per week

Greater

product use

▪ Seaweed is used as gelling agent for

various processed food and

pharmaceutical products e.g.

toothpaste and chocolate

Increasing

Demand for

premium

products

▪ Growing affluence especially in

Middle East and Asia has led to

growth in premium products e.g.

grouper - US FDA has classified

carrageenan (seaweed) as an

organic product

Global consumption

Kg fish / capita

1815

1312

+1% p.a.

2009 1990 1980 1970

185

+48%

2030 2009

125

+2% p.a.

Mostly in the developing world,

in urban areas due to

increasing longevity and

immigration

SOURCE: FAO, Fish to 2030

Potential for the Aquaculture Sector in South Africa

DAFF has identified aquaculture as a sector that presents a good opportunity to diversify

fish production

Satisfy local demand

Contribute to food and nutritional security

Create sustainable job opportunities

Foster economic development

Capitalise on export opportunities

Stimulate rural development and livelihoods

Attract foreign direct investment

Safeguard sustainable environmental integrity

Create SMMEs and wealth generating opportunities through Aquaculture

SOURCE: DAFF National Aquaculture Strategic Framework

What enablers are required?

AQUACULTURE OPERATION PHAKISA INITIATIVES DEVELOPED DURING THE LAB (OCTOBER 2014)

SOURCE: Aquaculture Lab

Regulations

Skills

Market

Funding

Selection and Implementation of Catalyst Projects 1

Inter-Departmental

Authorisations Committee 3

2

Capacity building and skills development

Legislative reform 4 Globally recognised

monitoring and

certification system

8 Government Preferential

Procurement

Coordinated industry-wide

marketing efforts 7

Aquaculture Development Fund 5

6

9 Aquaculture Development Zones (New)

24 ORIGINAL AQUACULTURE PROJECTS

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

Paternoster Oyster, Amatikulu ADZ removed to Initiative 9 (ADZ)

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

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

HAMBURG

Expansion of Hamburg Oyster farm

New farm: Hamburg Kob

Coastal provinces

SMME’s (6)

Inland Provinces

Western Cape

Eastern Cape

Kwazulu

Natal

Free State Northern

Cape

North

West

Mpumalanga

Limpopo

East London Saldanha

Overberg

Hondeklip Bay

Algoa Bay

Doring Bay

Gauteng

Phase 1 (6-12 months implementation)

Phase 2 (12-24 months Implementation)

Phase 3 (2-4 years implementation)

PORT ELIZABETH

New: Wild Coast Abalone Ranching

HAGA

Expansion: Wild Coast Abalone Farm

19 NEW AQUACULTURE PROJECTS POST THE LAB

SMME’s (9)

Western Cape

Eastern Cape

Kwazulu

Natal Free 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: Northdene (tilapia)

KLEINZEE

Exp: Really Useful Investments

GRAAF RENIET

Exp: Karoo Catch

Phase 1 Phase 2 Phase 3

HERMANUS

New: Hermanus Salmon

COEGA

RMS Abalone Farm

EDEN

New: Abalone Farm Aquinion

Dusky kob harvesting

in Richards bay

Mussels harvesting and processing in

Saldanha Bay

PROJECT HIGHLIGHTS

Abalone ranching underway Cape Recief

Growing abalone seeded

through ranching

Monitoring of kob at Hamburg

Project beneficiaries

Siyazama Cooperative

PROJECT HIGHLIGHTS

Ocean trout harvested and filleted

Saldanha Bay

Cultured Oysters

Saldanha Bay

SUPPORT PROGRAMMES

REGULATIONS

• Coordinated Authorization process

(Interdepartmental Authorization

Committee)

• Draft Aquaculture Bill

• (Streamlining of existing legislation

affecting aquaculture in South Africa)

• Strategic Environmental Assessment

(Mapping dedicated zones for aquaculture)

• Revised of Environmental Impact

(Shortened duration of the Environmental

Impact Assessment process reduced to 6

months)

13

CAPACITY BUILDING

• Targeted training on scare skills

(Training of aquatic vets and revising

programmes for aquaculture artisans)

• Targeted research and development

(Coordinated research in partnership with

Universities and other key institutions)

SUPPORT PROGRAMMES..

14

FUNDING

• Aquaculture Development Fund

Working Group

(Coordinate access to funding from over 30

Development Finance Agencies ranging

from grants to loans)

• Dedicated funding programme for

aquaculture

(Aquaculture Development and

Enhancement Programme under the

Department of Trade and Industry in

partnership with the Department of

Agriculture, Forestry and Fisheries)

MARKETING

• Marketing and Awareness Plan

Co-ordinate and promote aquaculture

locally and abroad

• State driven Food Safety Programmes

(Shellfish Monitoring Program and Finfish

Monitoring Programme to facilitate access

to market)

• Government Preferential Procurement

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 was investigated in 2016/2017:

Aquaculture Species Feasibility studies:

• Completed to assist new entrants and funding agencies/investors with informed decisions

• Available on the DAFF website

AQUACULTURE DEVELOPMENT ZONES - ADZs

16

WHAT IS AN ADZ?

• Land or water based area set aside

exclusively for aquaculture development

• Have bulk infrastructure required for

development and operation

• Identified based on:

- Locational advantages

- Availability of quality water

- Carrying capacity of the ecosystem

- Accessibility to markets

- Potential socio-economic impact

BENEFITS OF AN ADZ

• Minimize planning cost such as EIA

• Minimize cost of infrastructure (bulk

infrastructure available) – electricity, access

roads, etc)

• Easy access to services such as extension,

veterinary services, hatcheries, etc)

• Coordinated marketing

• Access to incentive programs.

Location & Size • Situated approximately130km from Durban and 7km

from Amatikulu River • Targeted area is 108 hectares • Land based zone Targeted Species • Ornamentals, Prawns, Marine and Freshwater

Finfish Current Status • Currently only 2 hectares are utilised for

ornamental fish farming • 2 ornamental farms in operation Potential Production and Job Creation • Production of 15 000 tons per annum • Direct Job Creation: 6 000 jobs • Indirect Job Creation: 10 000 jobs

Current Status • Two projects identified under Operation

Phakisa for the Amatikulu ADZ • Department of Agriculture, Forestry &

Fisheries are in negotiation with the Ingonyama Trust Board to obtain a letter of consent to utilise the identified site

• Department of Agriculture, Forestry & Fisheries initiated the process of obtaining Environmental Impact Assessment

• Department of Agriculture, Forestry & Fisheries, KwaZulu-Natal Wildlife & Trade Investment KwaZulu-Natal started engaging potential investors (one new investor for prawn farming)

KwaZulu-Natal Province: Amatikulu Aquaculture Development Zone

Investment Opportunities:

Location & Size • Situated approximately 20km east of Port

Elizabeth • Targeted area is 440 hectares for Aquaculture • Land based zone Targeted Species • Marine and Freshwater Finfish and Abalone Current Status • No fish farming is taking place at the moment • Project driven by the Coega Special Economic

Zone • Department of Agriculture, Forestry & Fisheries

provides technical support Potential Production and Job Creation • Production of 20 000 tons per annum • Direct Jobs - 10 000 & Indirect Jobs 15 000

Eastern Cape Province: Coega Industrial Aquaculture Development Zone

Progress

• Feasibility study conducted.

• Land-based Aquaculture EIA completed.

• Process for Marine Pipeline Servitude (MPS) EIA initiated.

• Town Plan for Zone 10 completed.

Challenges

• Possible opposition to the MPS EIA

Coega ADZ Town Plan

440 Ha in Zone 10

− 100 Ha – marine

− 250 Ha – freshwater

− Processing facilities

− Fish feed

− Training and R&D

Coega ADZ Phase 1

Location & Size • Situated in the west bank of East London adjacent

to the East London Airport. • Area is 32 hectares • Land based zone Targeted Species • Marine and Freshwater Finfish (salmon), Abalone

and Seaweed Current Status • Currently two farms in the zone • Current production of 200 tons Potential Production and Job Creation • Production of 10,000 tons per annum • Direct Job Creation: 2 000 jobs • Indirect Job Creation: 3 000 jobs

Progress • Zone driven by the East London Industrial

Development Zone • EIA granted for finfish and abalone culture • One farm identified under Operation Phakisa • Continuous marketing of the zone and

identification of potential investors • Two new farms to be established • Department of Agriculture, Forestry & Fisheries

provides technical support • Recently zoned for the culture of Barramundi,

Rainbow trout and Atlantic salmon

Challenges • An agricultural activity in the Industrial

Development Zone results in high levies for the farmers

• Access to support services

Eastern Cape Province: East London Industrial Development Zone

Location & Size • Situated 60km northeast of East London • Area is 26.4 hectares • Land based zone Targeted Species • Marine Finfish, Abalone and Seaweed Current Status • Facilitating funding for support of infrastructure

development • Department of Agriculture, Forestry & Fisheries

initiated process of identifying potential investors Potential Production and Job Creation • Production of 2 000 tons per annum of Dusky kob

or 700 tons per annum Abalone

• Direct Jobs (1000); Indirect Jobs (2000)

Progress • Environmental Impact Assessment approved • Waste Management permit issued

• Community resolution issued

• Department of Agriculture, Forestry &

Fisheries has developing zone designs, architectural and management plans

• Progress on obtaining lease from Dep. Rural Development and Land Reform

Challenges • Access to funding for infrastructure

development.

Eastern Cape Province: Qolora Aquaculture Development Zone

Location & Size • Algoa Bay, Port Elizabeth • Area is 285 hectares • Sea based zone Targeted Species • Finfish (yellowtail) Current Status • No farming activities are taking place currently Potential Production and Job Creation • Production of 1 000 tons per annum • Direct Jobs 220 • Indirect Jobs 780

Eastern Cape Province: Algoa Bay Aquaculture Development Zone

Progress

• Environmental Authorisation granted

• Environmental Authorisation has been advertised in the local newspapers as per requirements

• Appeals have been submitted to Department of Environmental Affairs

• Department of Agriculture, Forestry & Fisheries to respond to appeals to enable Environment Affairs’ Minister to make a decision in light of the submitted

Challenges

• Objections raised by lobby groups may delay the finalisation of the authorisation.

Location & Size • The Vanderkloof Dam is situated in the

Northern Cape approximately 130 km downstream from Gariep Dam and is fed by the Orange River.

• Vanderkloof Dam is the second-largest dam in South Africa (in volume).

Targeted Species • Freshwater Finfish (trout).

Current Status • No farming activities are taking place

currently. Potential Production and Job Creation • Production of 11518 tons per annum • Direct Jobs 1000 • Indirect Jobs 1000

Northern Cape Province: Vanderkloof Trout Aquaculture Development Zone

Progress

• Feasibility study complete

• Environmental Impact Assessment Authorisation to be obtained

• Commencing trout pilot project

Location & Size • Saldanha Bay is situated on the west coast of

South Africa, approximately 100km north of Cape Town

Targeted Species • Mussels • Oysters • Marine (white stumpnose) and freshwater

finfish (salmon) Current Status • 10 aquaculture farms in operation in

Saldanha Bay

Western Cape Province: Saldanha Bay Aquaculture Development Zone

Progress

• Currently working on conducting blanket EIA for new entrants into the industry

• Currently have 4 phakisa projects in Saldanha Bay

• 6 new projects situated in Saldanha Bay applying for phakisa status

Thank you!!!