regional trade strategy development workshop

1

SmartFish

Meeting Report

No 001

Prepared by

Erik Hempel

REGIONAL TRADE STRATEGY

DEVELOPMENT WORKSHOP 26th – 28th July 2011, Zambia

2

TABLE OF CONTENTS

EXECUTIVE SUMMARY .................................................................................................................................................. 3

1. WORKSHOP OUTLINE / CONTEXT ......................................................................................................................... 4

2. Agenda .................................................................................................................................................................. 4

3. Participants ........................................................................................................................................................... 5

4. List of presentations ............................................................................................................................................. 5

5. Conclusions and outcomes ................................................................................................................................... 6

6. Next steps ............................................................................................................................................................. 6

7. Conclusions regarding technical arrangement and administration ..................................................................... 6

8. ANNEXES ............................................................................................................................................................... 8

Annex 1: Agenda ....................................................................................................................................................... 8

Annex 2: List of participants ..................................................................................................................................... 9

Annex 3: Copy of presentations ............................................................................................................................. 13

This publication has been produced with the assistance of the European Union. The contents of this

publication are the sole responsibility of the author and can in no way reflect the views of the

European Union.

3

Workshop Report

Implementation of a Regional Fisheries Strategy

for the ESA-OI Region

Cosmic Executive Lodge, Lusaka, Zambia

26th – 28th July 2011

EXECUTIVE SUMMARY

The SmartFish programme organised a workshop on the implementation of a regional fisheries strategy in Lusaka,

Zambia at the end of July 2011. This was the first of several planned workshops in the region, and it followed work

on a study on regional trade, which was almost completed.

A total of 28 persons participated, of which 4 were invited speakers and 4 were from the SmartFish office. The

participants included 3 representatives from Malawi, 13 from Zambia and 4 from Zimbabwe.

The workshop presented objectives and country presentations as a background for the strategy, then identified

various alternatives for action, and discussed these at the end.

Some conclusions regarding the administration and technical arrangement are given at the very end of the report.

4

1. WORKSHOP OUTLINE / CONTEXT

The workshop focused on the main objective: developing and implementing a regional fisheries strategy for the

countries of the region. The outline of the workshop was generally as follows:

• Definition of the objective

• Description of the present status, including an overview of regional trade and pr4esentations of the

individual countries.

• Identification of alternatives

• Development of a strategy

As a reference framework, the COMESA Regional Trade Strategy was presented and use. This strategy is

relatively general, but served as a reference and guideline for the individual countries.

2. AGENDA

Based on this general outline, the agenda was as follows (see also Annex 1: Agenda):

• Welcome, by Chris Short

• Background and objective of the workshop, by Chris Short

• Methodology, by Erik Hempel

• Markets, major species and product forms, by Vincent Defaux

• Regional trade overview, by Satish Hanoomanjee

• Country presentation: Malawi, by Orton Malion Kachinjika

• Country presentation: Zimbabwe, by Bothwell Mokodza

• Challenges to developing regional trade - discussion

• Country presentation: Zambia, by Mainza Kalonga

• Aquaculture as a future source of supplies in Africa, by Blessing Mapfumo

• Regional trade vs external markets: food supplies or hard currency? Legal and regulatory constraints to

trade, by Bent Larsen

• Trade strategy development – an example, by Erik Hempel

• The COMESA Fisheries Strategy, by Shamseldin Selim

• Regional trade objectives, by Caroline T. Kirema-Mukasa

• Summing up objectives, by Erik Hempel

• Regional trade opportunities, by Satish Hanoomanjee

• Institutional constraints to trade, by Koane Mindjimba

• Key drivers in regional trade, by Satish Hanoomanjee

• Discussion

5

• Drafting a strategy for regional trade development, by Erik Hempel

• Discussion and drafting main aspects of the strategy, Moderator: Chris Short

• Summing up, by Erik Hempel

• Discussion / definitions and defining next actions

3. PARTICIPANTS

A total of 28 person participated in the workshop (see also detailed list of participants in Annex 2).

Country No. of Participants Comments Malawi 3 Zambia 13 Zimbabwe 4 Mauritius 1 Speaker Namibia 1 Speaker Uganda 2 Speakers Norway 1 Organizer Denmark 1 Organizer France 1 Organizer Canada 1 Organizer/PMU TOTAL 28

4. LI ST OF PRESENTATIONS

Vincent Defaux Markets, major species and product forms

Satish Hanoomanjee Continental and regional fish trade

Satish Hanoomanjee Regional trade opportunities

Satish Hanoomanjee Key drivers in regional trade

Erik Hempel Methodology

Erik Hempel Challenges to developing regional trade

Erik Hempel Trade strategy development – an example

Erik Hempel Potential interventions

Erik Hempel Logical framework for developing regional trade

Orton Malion Kachinjika Status of the fisheries sector in Malawi

Mainza K. Kalonga Fish trade and marketing in Zambia

Bent Larsen Regional trade vs. external markets – Food supplies or hard currency?

Bothwell Makodza Zimbabwe: Country status on fisheries and aquaculture (2011)

Blessing Mapfumo Aquaculture – The future source of fish supplies in Africa

Koane Mindjimba Institutional constraints to regional fish trade – The case of fish and fishery

products

6

Caroline T. Kirema-Mukasa Regional trade objectives

Shamseldin Mohamed Salim COMESA regional strategy for sustainable development of fisheries and

aquaculture

Chris Short Introduction – Implementation of a regional fisheries strategy

5. CONCLUSIONS AND OUTCOMES

The discussion centred on whether a regional strategy should be for all the countries as a unit, or for each

individual country. The general conclusion was that it would have to be a national strategy on regional trade for

each individual country, but with reference to the COMESA regional trade strategy.

There was consensus that the example from Namibia could be used by the countries in the region to develop these

national strategies, with emphasis on food security, diversification of products and exports, and maximization of

returns for the producers and exporters.

6. NEXT STEPS

The next steps for the SmartFish project will be to organize the remaining regional workshops and gather

experience and knowledge from these. Then, when all workshops have been completed and information and

opinions have been collected from all countries in the region, this material will have to be consolidated into a

regional guideline for regional fisheries trade strategies. A decision about the level of involvement from SmartFish

in developing country strategies may also have to be taken at that point, as the process to develop a fish trade

strategy is likely to be costly and protracted depending on particular national situations at the time.

7. CONCLUSIONS REGARDING TECHNICAL ARRANGEMENT AND

ADMINISTRATION

1. It would be a great advantage to have a secretary come along to take care of administrative duties and

payments.

2. Preparations: arrive at the venue at least one full day before the workshop starts, as we need one full day

for preparations and practical matters.

3. Check hotel facilities and rooms thoroughly before booking and before starting the workshop. For

example, audio-visual equipment should be tested.

4. Plan the programme for better “flow”. i.e. a better progression from one item to the next.

5. Name tags should be prepared and be worn by all.

6. A programme should be printed beforehand.

7. Printed list of participants beforehand.

7

8. Prepare memory sticks with all presentations and other documentation to be given to participants at the end

of the workshop.

8

8. ANNEXES

ANNEX 1: AGENDA

Time Item Proposed speaker DAY 1 Background 09:30 – 09:40 Welcome Chris Short 09:40 – 10:00 Background and objective of the workshop Chris Short 10:00 – 10:30 Coffee/tea break 10:30 – 10:50 Methodology Erik Hempel 11:20 – 12:20 Markets, major species and product forms Vincent Defaux 12:20 – 12:45 Regional trade overview Satish Hanoomanjee 12:45 – 13:00 Country presentation: Malawi Orton Malion Kachinjika 13:15 – 14:30 Lunch 14:30 – 14:45 Country presentation: Zimbabwe Bothwell Mokodza 14:45 – 15:00 Challenges to developing regional trade -

discussion Erik Hempel

15:00 – 15:30 Coffee/tea break 15:30 – 16:00 Aquaculture as a future source of supplies in

Africa Blessing Mapfumo

16:00 – 16:30 Summing up Chris Short DAY 2 Developing a strategy 09:00 – 09:30 Country presentation: Zambia Mainza Kalonga 09:30 – 10:15 Regional trade vs external markets: food

supplies or hard currency? Legal and regulatory constraints to trade.

Bent Larsen

10:15 – 10:45 Trade strategy development – an example Erik Hempel 10:45 – 11:15 Coffee/tea break 11:15 – 11:45 The COMESA Fisheries Strategy Shamseldin Selim 11:45 – 12:15 Regional trade objectives Caroline T. Kirema-Mukasa 12:15 – 12:40 Summing up objectives Erik Hempel 11:40 – 12:10 Regional trade opportunities Satish Hanoomanjee 12:20 – 14:20 Lunch 14:20 – 14:40 Institutional constraints to trade Koane Mindjimba 14:40 – 15:00 Key drivers in regional trade Satish Hanoomanjee 15:15 – 16:00 Coffee/tea break 16:00 – 17:00 Discussion Moderator: Chris Short 18:00 - Cocktail Day 3 Drafting a strategy 09:00 – 09:30 Drafting a strategy for regional trade

development Introduction by Erik Hempel

09:30 – 11:00 Discussion and drafting main aspects of the strategy

Moderator: Chris Short

11:00 – 11:30 Coffee/tea 12:00 – 12:20 Summing up Erik Hempel 12:20 – 13:00 Discussion / definitions and defining next

actions All

13:00 - Lunch Photographs + end of Workshop All

9

ANNEX 2: LIST OF PARTICIPANTS

Name Organization Address Mr. Orton Malion Kachinjika Chief Fisheries Officer

Focal Point for Malawi Department of Fisheries Ministry of Agriculture and Food Security

P.O. Box 593 Lilongwe Malawi Mob: +265 999 510 127 Tel: +265 1 789 383 Fax: +265 1 788 712 E-mail: [email protected]

Mrs. Jacqueline Kazembe Deputy Chief Fisheries Officer Department of Fisheries Ministry of Agriculture and Food Security

P.O. Box 593 Lilongwe Malawi Mob: +265 888 936 866 Tel: +265 1 788 511 Fax: +265 1 788 712 E-mail: [email protected]

Mr. Hedson Bvutula

Sales and Marketing Manager Press Corporation Ltd MALDECO Fisheries

P.O. Box 45 Mongochi Malawi Tel: +265 1 580 072 Mob: +265 888 841 442 Fax: +265 1 580 681 E-mail: [email protected]

Mr. Mainza Kalonga Deputy Director Focal Point for Zambia Ministry of Livestock and Fisheries Development Department of Fisheries Headquarters

P.O. Box 350100 Chilanga Zambia Mob: +260 977 427 935 Tel: +260 211 278 418 Tel: +260 211 278 618 E-mail: [email protected]

Mr. Timothy Phiri Chief Fisheries Training Instructor Department of Livestock and Fisheries Development

P.O. Box 350100 Chilanga Zambia Mob: +260 977 826 232 Tel: +260 211 278 418 E-mail: [email protected]

Mr. Robert Lubilo Principal Fisheries Technical Officer Ministry of Livestock and Fisheries Development Department of Fisheries

P.O. Box 350100 Chilanga Zambia Mob: +260 977 633 081 Tel: +260 211 278 418 E-mail: [email protected]

Mr. Jason Lawrence Capital Fisheries Plot 6980 Katanga Road P.O. Box 34850 Lusaka Zambia Tel: E-mail: [email protected]

Mr. Brent Stubbs Capital Fisheries Plot 6980 Katanga Road P.O. Box 34850 Lusaka Zambia Tel: E-mail:

10

Name Organization Address [email protected]

Ms. Jocelyn Runnebaum Research Assistant The WorldFish Center – Zambia Office

Addis Ababa Drive, Plot No: 4186, Longacres, P.O. Box 51289, Ridgeway Lusaka, Zambia Tel: +260 211 257939 Tel: +260 211 257940 Fax: +260 211 257941 E-mail: [email protected]

Mr. James Kaposa Lake Harvest Aquaculture Lusaka Zambia Mob: + Tel: +263 61 3201 E-mail: [email protected]

Ms. Lwenje Margareth Lungu Zambia Bureau of Standards Ministry of Trade and Industry

P.O. Box 50259 Ridgeway Lusaka Zambia ZA15101 Tel: +260 211 231 385 Mob: +260 Fax: +260 211 238 483 E-mail: [email protected]

Mr. Shamseldin Mohamed Salim

COMESA Ben Bella Road Lusaka Zambia Mob: +260 977 456 208 Tel: +260 211 229 725 Fax: +260 211 225 107 E-mail: [email protected]

Mr. Chikakuk Miti Climate Change Coordinator COMESA

Ben Bella Road P.O. Box 30051 Lusaka Zambia Mob: +260 977 805 075 Tel: +260 211 229 725 c/o: [email protected]

Ms. Angela Mulenga Regional Coordinator Agro-foods COMESA


Ms. Bridget Chilala ACTESA COMESA

Ben Bella Road Lusaka Zambia Mob: Tel: +260 211 229 725 c/o: [email protected]

Mr. Frank Mugyenyi Regional Technical Advisor COMESA


Mr. Bothwell Makodza Director Agriculture, Mechanisation

Bevan Building 18 Borrowdale Road

11

Name Organization Address and Irrigation Development Division of Livestock Production and Development

Box CY 2505 Causeway Harare Zimbabwe Mob: +263 712 884 115 Mob: +263 772 130 674 Tel: +263 4702 584 Fax: +263 476 4475 E-mail: [email protected]

Mr. Gregory H. Nyaguse Senior Ecologist Ministry of Environment and Natural Resources

Lake Kariba Fisheries Research Station Zimbabwe Mob: Mob: Tel: +263 4 707 624 E-mail: [email protected]

Dr. Tamuka Nhiwatiwa University of Zimbabwe Dept. of Biological Sciences

P.O. Box MP 167 Mt. Pleasant Harare Zimbabwe Tel: +263 4 303 211 Mob: +263 772 439 922 Fax: +263 4 333 334 E-mail: [email protected]

Mr. Garikaimose Tongowona Programme Officer Aquaculture Zimbabwe

16 Northampton Crescent Eastlea Harare Zimbabwe Tel: +263 773 802 355 E-mail: [email protected] E-mail: [email protected]

Mr. Satish Hanoomanjee Speaker 58 Abbe Laval St Curepipe Road Mauritius Tel: +230 713 2710 Mob: +230 721 4201 E-mail: [email protected] [email protected]

Mr. Blessing Mapfumo Speaker Aquaculture Advisor INFOSA

P.O. Box 23523 Windhoek Namibia Tel: +264 61 279 430 Mob: Fax: =264 61 279 434 E-mail: [email protected]

Mr. Koane Mindjimba Speaker Regional Manager Regional Facilitation Unit for Eastern Africa

Kitante Close, Plot 14, 3rd floor Speke apt. 5 Kampala Uganda Mob: Tel: +256 414 251 640 Fax: +256 414 251 714 E-mail: [email protected]

Mrs. Caroline T. Kirema- Speaker P.O. Box 1625

12

Name Organization Address Mukesa Senior Fisheries Management

Officer, LVFO

Jinja Uganda Mob: +256 752 615 262 Tel: +256 434 125 000 Fax: +256 434 123 123 E-mail: [email protected]

Mr. Chris Short KE3 PMU Indian Ocean Commission

Ave. Guy Forget Quatre Bornes Mauritius Tel: ---- Mobile: +230 250 7180 Email: [email protected] Skype: mr,chrisshort

Mr. Erik Hempel IRFS Trade Consultant Hempel Consult

Grefsenveien 19 0482 Oslo Norway Mob: +47 9084 1124 (Norway) Mob: +230 948 1479 (Mauritius) E-mail: [email protected] SkypeID: erik.hempel

Mr. Bent Larsen IRFS Trade Consultant Managing Director Bent Larsen International

Denmark Mob: +230 9134736 (Mauritius) Mob: +45 5122 2602 (Denmark) E-mail: [email protected] SkypeID: BentLarsenINT

Mr. Vincent Defaux IRFS Consultant Trade Analyst, COFREPECHE Ltd Agrotec

Mobile nr. +33 6 37 60 17 04 Tel: +33 142 681 710 E-mail : [email protected] Skype address: sfpbecato

13

ANNEX 3: COPY OF PRESENTATIONS

Objective

Methodology

• To develop a regional strategy for the region

• Objective of this workshop: – Identify participating countries’ and stakeholders’

objectives with regard to fisheries trade

– Formulate some inputs for the regional strategy in terms of status reports and trade objectives

Workshop

• Organization:

• Day 1: presentation of data • Day 2: Discussions

Strategy • Objectives – Where do we want to go?

• Description of status – Where are we? • Options – Which roads will take us there?

• Choice of alternative options – This is the way we go.

• Interventions – These are actions we will take

• Feedback and corrections – Did we get there?

Plan for the workshop

• Objectives and legal environment

• Markets: supply and demand • Trade

• Country presentations

• Challenges to developing regional trade

• Aquaculture as a source of supplies • Developing a strategy

Developing a strategy • The COMESA fisheries strategies

• Regional trade objectives • Trade opportunities

• Constraints

• Potential interventions/actions

• Drafting a strategy

14

Mil

lio

n

M

illio

n

AQUACULTURE

The Future Source of Fish Supplies in Africa

Presented by BLESSING MAPFUMO

Africa

• 30.4 million km2

• 54 countries

• 900 million

people

• 37,500 km

coastline

• More than

200,000 km2

lakes and

reservoirs

REGIONAL AQUACULTURE ADVISOR INFOSA

Global fishery production

by continent 2011 population

=7 billion 180,0.0

Mill.

tons

100

World Capture Fisheries vs.

Nearly half of our fish

coming from aquaculture

160,0.0

140,0.0

120,0.0

100,0.0

80,0.0

60,0.0

40,0.0

20,0.0

,0.0

1950 population

=2,5 billion

Other

Oceania

Europe

Asia

Americas

Africa

90

80

70

60

50

40

30

20

10

0

1950 1960 1970 1980 2000 2005 2009

Aquaculture Capture

Source: FAO Fishstat

Source: FAO Fishstat

9,0.0

8,0.0

7,0.0

6,0.0

5,0.0

4,0.0

3,0.0

2,0.0

1,0.0

,0.0

Aquaculture vs. Capture

Fisheries in Africa

Capture fisheries stagnating at around 7m tons since 2000

Aquaculture growing at 11% p.a

CAPTURE AQUACULTURE

Aquaculture today and the future

• General growth trend in aquaculture in most countries of Sub-Saharan Africa – A new paradigm on accelerated aquaculture growth,

realising failures of past efforts

– Government support being noted in many countries – for socio-economic gains

– Dwindling supplies of fish from traditional sources (capture fisheries) - a good basis to develop the sector

– Better understanding/ knowledge on aquaculture than before. Improved networking/exchange of info.

– The rise in commercial aquaculture (and aqua-businesses) as a drivers

– New species being tried/ experimented

– Better to Best Aquaculture practises Source: FAO Fishstat

2

Nigeria 7 347 25 718 152

Uganda 52 820 76

280 7 980 9

Zambia 1 460 4 240 8

Ghana 360 5 000 7

1 375 1 210 5

South Africa 3 613 2 819 5

Kenya 1 236 512 4

157 2 151 2

DRC 700 2 2

197 530 1

What are the Driving Factors?

Overfishing!!!

What are the Driving Factors? • Good natural conditions

• Improved economies

• Enhanced fish supply & investment opportunities – Local enterprise

development (SMEs)

– Export earnings from industrial scale aquaculture

• The rise and rise of fish prices everywhere

• Socio-economic benefits (job creation, food security, livelihoods etc

Top Producers by Volume (tons)

Sub-Saharan Africa

Freshwater Aquaculture Species –

Sub-Saharan Africa

Tilapias African catfishes Carps

Rainbow trout Freshwater prawns Nile crocodiles

Of the whole Continent, Egypt accounts for over 73% (ie produces over 700,000 t) mainly from freshwater aquaculture

Ornamentals

Marine Aquaculture Species –

Sub-Saharan Africa

Shrimps Seaweeds Oysters

Mussels Abalone Limited finfish eg

Reddrum, Eels, Kob etc

Forms of Aquaculture

• Small scale aquaculture as a component of rural

farm systems (where fish cultivation is linked to

agriculture/livestock)

– This has been a general failure in the past

• Small to Medium Scale (Semi-intensive)

Enterprises

– Zambia, Kenya, Nigeria are good examples

• Large Scale, industrial scale aquaculture

– The future of African aquaculture?

3

)

Trade

Local

Intra-Africa

Exports

Zimbabwe H gh H gh Moderate

Namibia Moderate H gh H gh

Nigeria C H gh Moderate L m ted

Uganda H gh L m ted L m ted

Ghana H gh L m ted L m ted

Zambia H gh L m ted L m ted

Kenya H gh L m ted L m ted

Mozambique L m ted Moderate H gh

Madagascar L m ted L m ted H gh

Tanzania L m ted L m ted H gh

South Africa L m ted L m ted H gh

Tilapia Prices & Demand in

Southern Africa Retail Price range current

per annum

US$3.00 –

South US$4.50 –

US$4.50 –

US$4.00 –

US$7.00 –

US$3.00 –

US$2.50 –

US$2.50 -

US$2.00 –

Source:

Trade in Aquaculture Products Tilapia – the “Aquatic Chicken”

“Democratic fish” St. Peter’s Fish –

Jesus fed the 5,000!!

LAKE HARVEST AQUACULTURE –

one of the Best Examples of

Success in Sub-Saharan Africa

Natural impediments to aquaculture

development

Drought

Flooding

Climate change

4

The b gge

i st challenge of all –

Finance!!!

• Financial security

• Risk management

• High investment costs associated with aquaculture

• Collateral

• Unrealistic business plans

• Low priority to aqua- businesses vs. other sectors

• Pay back minimum is ~ 3 years (industrial)

• Not too many Localised success examples

• Bank professionals have limited knowledge on aquaculture

The list goes on………………….

Other challenges

• Lack of good quality seed

• Feed is still too expensive to many ~ US$1/kg

• Lack of good quality feed

• Poor infrastructure in remote areas

• Lack of know how for aquaculture practises & technologies

• Bio-security concerns (fish disease, thefts etc)

• Environmental problems (pollution, destruction of natural habitats etc

• Poor Legislation & regulatory frameworks in some countries

• Bureaucracy – Authorities taking time to approve/license aquaculture ventures…..

• Post harvest challenges – quality assurance, market access, distribution etc…….

Imports of fish products from Asia?

How is this affecting local producers?

Is this going to change?

What is the way forward - now and the future?

Conclusion • Yes aquaculture contributes to the future supplies of

fish in Africa

• Africa is the last frontier – last continent standing

• Investments in large scale aquaculture have gathered momentum

• Small scale aquaculture ventures being developed under a new paradigm

• Tilapia production continues to rise – this follows successful

examples in Zambia, Zimbabwe, Ghana etc

• Government authorities beginning to understand their roles better in aqua development

• The door that squeaks the loudest gets the oil!!

Special thanks…….

• Erik Hempel

• SARNISSA Forum

• ANAF & SPADA

• FAO

• Lake Harvest Aquaculture

• Satish Hanoomanjee

Thank you!!!!

COMESA REGIONAL STRATEGY FOR

SUSTAINABLE DEVELOPMENT OF FISHERIES AND AQUACULTURE

Presented by : Shamseldin Mohamed Salim AGRICULTURAL ECONOMIST (COMESA)

Lusaka, Zambia, 25 – 27 July, 2011

INTRODUCTION COMESA

Is a Regional Organization established in 1994 to replace the Preferential Trade Area (PTA) for Eastern and Southern Africa, which was created in 1981.

VISION

To create a fully integrated and internationally competitive region in which unified people, goods, services and capital move freely

OBJECTIVES

> Attain sustainable growth and development of Member States through balanced and harmonious development of its production and marketing structure; and

> Promote joint development in all fields of economic activities and the joint adoption of macroeconomic policies and programmes.

REGIONAL FOOD SECURITY

• COMESA Population has been growing at 3% per

annum compared with food production growth of 2.1%;

• Estimates by Early Warning System Network (FEWSNET) shows that over 10 million people will require emergency food aid to alleviate hunger.

• Countries with good rain patterns still face food insecurity due to lack of affordable modern farms inputs.

• COMESA is in the process of establishing a regional food balance sheet for more accurate food forecast of food security outlook at a regional level.

• COMESA is addressing high food prices to assist MS in designing their immediate actions in response to current and future food prices hikes.

COMESA COOPERATION ON FISHERIES DEVELOPMENT PROGRAMMES WITH

MEMBER STATES

Member States shall in the field of fisheries;

a) Co-operate in the fisheries and aquaculture development;

b) Adopt a common fisheries policy;

c) Enhance regional food sufficiency; d) Co-operate in the export of fisheries commodities;

e) Co-ordinate their policies regarding the establishment of agro-industries;

f) Co-operate in fisheries research and extension; and

OVERVIEW OF COMESA FISHERIES SUB- SECTOR

• Fisheries and Aquaculture in COMESA region shows a

very dynamics sector that contributes significantly to national economies and food security;

• Total COMESA trade in fish and fishery products totaled

US$ 55 million in 2005;

• While Extra-COMESA trade in fish and fishery products in 2005 stood at US$ 817 million and has been increasing over the years;

• Fishery sector remains an engine of future regional

economic growth.

COMESA COMMON AGRICULTURAL POLICY

AT FARM LEVEL

Low productivity, limited technology, poor infrastructure and poor marketing system.

AT NATIONAL LEVEL

Policy environment which is not conducive to increased production , limited incentives and weak institutions.

AT REGIONAL LEVEL

Limited harmonization of policies, regulations and trade practices, limited intra-regional trade, limited regional linkages and value chains. And

AT GLOBAL LEVEL

Subsidies in developed countries, issue of market and ever changing playing field.

COMMON CHALLENGES

• Over-fishing in a non sustainable manner;

• Deterioration of environment;

• Poor physical infrastructure as well as marketing infrastructure such as marketing information systems;

• Limited value-addition and low agro-processing capacity;

• Trade barriers at regional and global levels; and • Lack of major regional investment.

ON-GOING INITIATIVES AND POSSIBLE SOLUTIONS • COMESA Free Trade Area and the Custom Union;

• COMESA Common Investment Area (CCIA);

• Building necessary capacities with CAADP/NEPAD;

• Developing capacity (WTO, EPA);

• Harmonization of SPS;

• Harmonizing Products Standards;

• Addressing the World Food Crisis;

• Implementation of the Ministers of Agriculture Declarations and Decisions;

• Agro-processing;

• Improved Technology; and

• Infrastructure Modernization.

SPECIFIC OBJECTIVES OF THE

FISHERYSTRATEGY

• To give an overview of the potential for fisheries and aquaculture development in the COMESA region

• To identify key constraints to realizing this potential

• To outline the priority areas within the sub-sectors of marine fisheries, inland fisheries and aquaculture where targeted investment can overcome constraints and foster sustainable development

• To identify the roles of the main stakeholders, including COMESA, for taking this agenda forward

• To identify agenda actions by COMESA over the next three to five years to support implementation of the strategy

ISSUES ADRESSED UNDER FISHERY STRATEGY • Upgrading Quality and Safety of Fish and Fishery

products;

• Implementation of a National HAACP-based fish quality assurance;

• Promotion of legal cross boarder trade in fishery products;

• Human resource development and capacity utilization; • Promotion of agro-industry; and

• Technical support including sharing of best practices in the production and marketing of value-added products.

FISHERY STRATEGY OUTCOME

• Fishery and Aquaculture Action Plan developed;

• Development of a Regional Approach to mobilize

resources to develop region’s fishing industry;

• Intra and Extra trade of Fish and Fishery Products

enhanced; and

• Fish Added Value of Fish Products traded to EU and

USA under AGOA for eligible M. States.

END OF PRESENTATION

THANK YOU FOR LISTENING

FISH TRADE AND MARKETING IN ZAMBIA

A presentation to the workshop

on the implementation of a regional

fisheries strategy (IRFS) for ESA-IO

at

Cosmic Executive Lodge

By Mainza K. Kalonga National Focal Point

Introduction

• Zambia and its neighbours

- Democratic Republic of Congo

- Botswana,

- Namibia,

- Zimbabwe,

- Angola,

- Mozambique

- Malawi, and Tanzania

Major Fisheries • Lakes Tanganyika

• Bangweulu and Swamps Complex

• Mweru-Luapula

• Itezhi-tezhi

• Kariba

• Mweru-wa-ntipa

• Kafue Floodplains

• Lukanga Swamps and

• Upper Zambezi.

Economic activities for Zambia

• Zambia’s major economic activities

- Mining

- Agriculture

- Fishing

- Tourism and

- Forestry etc,

Production from capture fisheries and aquaculture

Description

Production (tons) % change

2009 2010

Capture fisheries (including Kapenta) 84,716 76,396 (9.8)

Fish Trade (import and export)

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Exp(tons) 977.39 1,092.34 773.13 551.86 5,499.84 1,031.39 263.46 239.47 1,810.22 665.59 394.4

Kapenta 9,216 7,821

(15.1) Imp(tons) 922.55 1,044.29 1,895.27 3,315.91 3,862.08 15,615.21 4,625.55 4,241.55 3,240.70 2,784.09 3,622.97

Aquaculture 8,505 10,921 21

TOTAL 93,221 86,687 (7)

Profile • Zambia’s current population is estimated at 13 million

• Per capita consumption- dropped over the years from 12.0 kg to about 6.5kg

• Demand is about 120,000 metric tonnes

• Reasons-:

• Population increase

• No substantial increase from capture fisheries

• Production remained at 70, 000 metric tonnes for a long time

Competent authority • Department of Fisheries

• Legal requirements for export and import is in

accordance with the provisions of the Fisheries Act no. 22 of 2011

• Fisheries and Aquaculture Policy: still in draft

• Issuance of Health Certificate for fish imports and

exports

Key Players • Development and ensuring formulation fish and

fishery product standards (Fresh, Frozen, Salted & smoked)

Government :

• Department of Fisheries

• Zambia Bureau of Standards

• Ministry of Health

• Ministry of Local Government and Housing

• Ministry of Commerce, Trade and Industry

Preservation and processing methods used: •Icing (Chilling)

•Freezing

•Open air Sun-drying

•Salting and sun-drying

•Smoke-sun drying

•Canning (mostly Sardines)

•Fish smoking widely practiced method of curing

fish in Zambia followed by Sun-drying and Salting

•Most of the traditional products are processed

by use of fuel wood, conflicts have emanated

with environmentalists over threats of deforestation

•Options to use salt not much welcome in the country,

most consumers do not prefer salted fish, needs tips

on how prepare salted fish

•The cost of salt is relatively high.

•Salted fish is mainly destined for Democratic

Republic of Congo market.

•Few companies using Blast Freezers and Cold

Stores for storage of fresh fish

•Most small-scale operators lack capital to invest in

expensive machinery for cold chain operations but

use ice and fridges for handling of fresh fish

1 Democratic Republic of Congo

Sun-dried, Smoke-dried and Salted All species

2 Republic of Africa Smoke-dried Clariidae

List of exported and imported fish species

Exported Fish Species Imported Fish species

Limnothrissa miodon Salmo trutta

Tilapia .niloticus Thunnus thynnus

Barbus spp. Thnnus maccoyii

Stolothrissa tanganicae Markerel

Clarias gariepinus Dog fish

Clariass spp., Shark

Tilapia mossambicus Xiphia gladuis

Dissostichus spp

Tilapia rendalli

Marcusenius macrolepdotus Thunnus obesus

Assorted species Clupea harengus

Clupea pallassi

Gadius morhoa

Gadius agac

Gadius macrocephalus

Brisling or sprats

Coal fish

Prawns

Lobsters

Shrimps Crabs

Crustaceans

Qysters

Scallops

Mussels spps

Cuttle fish

Squid

•Clarias gariepinus

•Hydrocynus vittatus

•Labeo species

•Limnostrissa species

•Stolothrissa tanganicae

•Lates species

•Alestes species

•Oreochromis macrochir

•Tilapia rendalli •Oreochromis andersonii

•Tilapia niloticus

Major market outlets in country:

Access to both major and potential markets is easily

accessible by road network, although most feeder

roads leading to fishing camps are in deplorable state.

The major market outlets of fish originating from

Zambian fisheries are as shown in the table below:

SN. MARKET FISH PRODUCT PREFERRED SPECIES

1 Copper belt Province Sun-dried, Smoke-dried and frozen Cichlidae, Claridae Characins,

Citharines, Labeo and Small pelagics

2 Lusaka province Fresh/frozen, Sun-dried, Smoke-dried and

Salted Cichlidae, Claridae Characins, Citharines, Labeo and Small pelagics

3 North-western

province Sun-dried, Smoke-dried Cichlidae and Small pelagics

4 Northern Province Fresh/frozen, Sun-dried and Smoke-dried Cichlidae and Small pelagics

5 Central Province Fresh/frozen Sun-dried and Smoke-dried Breams, Catfish and Small

pelagics

Potential for future

There is increased demand for fish exports to

neighbouring countries

FISH

Fresh-frozen

Angola (Eastern

Major constraints to fish trade and marketing:

•Poor processing facilities

•Bad road network

•Lack of marketing information system among

stakeholders

•Limited skills and education for fishers, fish farmers

and traders

•Lack of knowledge on pest control and use of chemicals on fish

•Inappropriate packaging materials

•High and double levying by Local Council and Market Authorities

•Unstable catches & prices

•Lack of hydro-electric power in some rural areas

•Lack of investment and credit facilities to the industry

Fisheries as an employer

Over a million people are directly or indirectly

involved in fishing related activities such as:

•Fishing •Processing •Fish trading and Marketing

•Transportation •Material suppliers (fishing nets, packaging

materials, Marine equipment & spares, Salt etc.)

•Institutions (Local Councils-fish levies

Aquaculture Development:

•It is becoming one of the fastest growing agricultural

activity in the country.

•Contributes about 8,500 tonnes of fish annually. The main methods of production include:

•Ponds constructed using earthen or concrete (both

commercial and small-scale)

•Cages mounted on lakes (Commercial Operators)

•Pens constructed in under-utilized water bodies

(small-scale)

•Aquaculture Strategy and

•Implementation plan in place

Most cultured fish species include:

•Oreochromis andersonii

•Oreochromis macrochir

•Tilapia rendalli

•Clariidae species

•Talapia niloticus

Challenges:

•Lack of designated landing sites with fish handling,

processing and storage facilities

•Bad feeder roads leading to fishing camps

•Lack of marketing information amongst different

players in fish trade and marketing

•High and double levying on fish products reduces

profit margins to fish traders

•Unstable fish catches and unprecedented price

fluctuations at source

Lack of good quality fish seed and feed for

aquaculture development

Recommendations:

•Improve fish landing sites with ice making machines,

fish freezing and storage facilities for both cichlids

and small pelagics

•There should be access to portable water at

designated landing sites for both processing activities

and human usage

•There is urgent need to put in place an effective and

efficient cold chain linking the production centres to

market outlets using refrigerated trucks by both

small-scale traders and commercial operators

•Design and construct fuel efficient fish smoking kilns

using less fuel wood, e.g. Chorkor smoking kiln using

briquettes as fuel wood

•Improve dissemination of fish market information

amongst different stakeholders in the fishing industry

(Fishers, Processors, Traders, Transporters,

Importers, Exporters, Consumers etc)

•To intensify rural electrification process to cater for designated landing sites

•To harmonize fish trade and marketing with

neighbouring countries and ensure good quality of

fish end-products is maintained to facilitate trade

Conclusion

The fish trade and marketing is dominated with many

middlemen who add no value or very little to the

end-product , but get huge profits when compared to

fishers.It is saddening to note that the process of value

addition to fish in the country is still backward. The

introduction of viable value-addition programmes in Zambia would go a long way in improving quality of the

end-product and increase income to those involved

and facilitate regional and international trade.

However, this needs to start with the change of

consumer’s mind-set over what they consider good

List of exported and imported fish species

Quality and how it should be presented to them.

The consumers need to spell out their specifications

e.g. gutted and scaled fish or beheaded fish

characteristics associated with reduction of spoilage

or post harvest losses. Lack of investment and credit

to the fishing industry is another big challenge that

needs to be addressed for this sector to grow. There

is need for political will to attract investment and credit

to the fisheries sector.

Exported Fish Species Imported Fish species

Limnothrissa miodon Salmo trutta

Tilapia .niloticus Thunnus thynnus

Barbus spp. Thnnus maccoyii

Stolothrissa tanganicae Markerel

Clarias gariepinus Dog fish

Clariass spp., Shark

Tilapia mossambicus Xiphia gladuis

Tilapia rendalli Dissostichus spp

Marcusenius macrolepdotus Thunnus obesus

Assorted species Clupea harengus

Clupea pallassi

Gadius morhoa

Gadius agac

Gadius macrocephalus

Brisling or sprats

Coal fish

Prawns

Lobsters

Shrimps Crabs

Crustaceans

Qysters

Scallops

Mussels spps

Cuttle fish

Squid Octopus

hank ou for is ening

- Component: ‘Regional Trade’ – Workshop, Lusaka, Zambia 25 – 27 July 2011

Presentation : Markets, major species and products forms

Markets (local, national, regional, international) react and interact by their supply and demand characteristics in line with current, anticipated and urgent

needs influencing availability of species and products forms

Key players: producers, traders, input suppliers, consumers + governments, interGOs, NGOs

Overview/reminders on:

• Demand characteristics

• Supply characteristics

• Majors species and products forms (region)

25/07/2011 Vincent Defaux 2





+ National economy: per capita income levels / different

groups of consumers . Fish demand is price elastic

+ Demography (graphs below) including urbanisation

+ Culture – traditions : products awareness/habits by consumers (fish against other commodities)

+ Tourism and immigration (culture from non-resident communities)

--------------------------------------------------------------------

+ Health and seafood quality awareness

+ Responses to communication : product and health advertisement, NGOs actions (in some countries)







• 2003 IFPRI-WorldFish Centre study: projection of per capita consumption in Sub-Saharan countries in 2020, stagnation at @ 6.6 kg/year (note: study to be updated by the end of 2011 ,coordination: W. Bank)

• Then what are the projections at country level and under different consumer groups within each country of interest for Smartfish?

• Well… middle –upper classes (communities) may increase their purchasing powers in the region.

• Even if per capita stagnates , national consumption may grow by demography (graphs below). YET, different purchasing powers by income levels!

Estimated average per capita consumption of FISH (kg/year) using latest FAO country profiles data (around 2003)

60

50

40

30

Average 20 within the 19

countries

0

France: currently around 34 kg/year – Average in the EU 17.1 kg/year. To compare with other sources of animal proteins meat consumption...

25/07/2011 Vincent Defaux 5 25/07/2011 Vincent Defaux 6

Ye





650000,0

550000,0

450000,0

350000,0

250000,0

150000,0

50000,0

-50000,0

Pr jections of average annual

consu ption per country in MT/year

Sudan

DR Congo Tanzania

Uganda

Ethiopia

Madagascar

Kenya Zambia

Sudan Malawi

Others

30000,0

25000,0

20000,0

15000,0

10000,0

5000,0

,0

Project per country in MT/year

South Africa?

Mauritius Eritrea Burundi Somalia

Zimbabwe Comoros

Rwanda

Seychelles

Swaziland

Djibouti

2010 2015

25/07/2011 Vincent Defaux

2020 2025 2030 ar Projections by scenario of medium fertility va riant in: United Nations, Department of

Economic and Socia l Affairs, Population Division (20 11). World Population Prospects: The 2010 Re vision, CD-ROM Ed ition. Using fixed per capita consumption (cf. previous slide ). Calculated by author - contrib utions Antonia Hjort and Chris Short. Considering no 7 change in national per capita consumptions.

2010 2015 2020 2025 2030 Projections by scenario of medium fertility variant in: see previous slide






• Production: geographical and environmental

limits of fisheries and fish farming (biology,

seasonality, geography, currents, continental

plates, fishing level)

• Production mode: small scale – large scale;

extensive – semi-intensive aquaculture

• Capacity : production + net trade (net importer/net

exporter)

• Strength/solidity of the supplier(s) : capital and

cash flow solidities to reimburse credits






• Availability and prices of relevant technology and

energy sources (and maintenance) :

• Fuel, electricity, engines, other;

• Fish farms : good quality inputs (seeds/breeders, fertilizers)

• Availability and prices of human resource skills

• Supply chain characteristics :

• Catching – landing - transport (air, road, sea) : distance

to markets hence logistics

• Fish markets, small fish stalls/selling points in town

blocks, restaurants // supermarkets (increasing in towns)







• Competition in terms of volume, value and quality

(note : a cultural taste can be related to a mishandled fish) with other fish products and food commodities

• Especially other protein sources such as meat

• Availability of similar products (fish or farmed, ways to make its product different, informal/illegal (organised – non organised trade), cheaper products from other locations/countries

• Reduction of post-harvest loss to make additional money including use of by –catch, processing waste, reduction of spoiled fish, other


• Natural/artificial inflation/deflation of a national

economy (ex. foreign exchange ; hard currency)

• Governmental and intergovernmental

actions/policies : supports (production /trade– ex.

subsidies -, banking facilities, credit facilitations) ;

control (trade legislation on importing/exporting

goods, fishing/fish farming regulations, trade

barriers (tariff and non tariff barriers))






+ To distinguish high value and low value fish/fish products. Definition changing in time for some species and products from the same species.

Marine species

+ Pelagic fish :high value - tuna species (but in general sold on the international markets, hotels), sharks; low value pelagic fish (herring, scad)

+ Demersal/benthic: high value (snappers, groupers, breams, parrotfish, emperor…); low value (Pseudotolithus spp., Pseudupeneus spp. , Pomadasyidae )

+ Shrimp, mollusks, crustaceans (high value in general)


Freshwater key species

+ Tilapia : wild or farmed* - (O. niloticus and several species) + Catfish : wild or farmed – several species + Nile Perch (introduced) + Other such non key pelagic species; small fish traded under

the common name Mukene in Uganda

+ * : Total tilapia aquaculture production in 2009 in Africa:

434 000 tonnes (total) but including Egypt 370 000 tonnes . Then 64 000 tonnes from other countries only (increasing ; in Nigeria, Uganda in particular).






+ Whole (large or table size) in unit or in a specific number (especially small fish)

+ Different sizes available hence - in general - different prices + General processing : fresh, frozen, dried, dried and salted,

smoked*, cooked, fried

+ Further processing: fried with ‘wheat’ (fish fingers), ready to eat, canned (different recipes), sold with other food commodities (ex. with rice and a sauce, etc.)

+

+ * in general hot smoked in the region (HAP issue)

(NB: reminder – local products can compete with ones from other countries – on prices mainly)


+ Finfish :

• Whole : in unit or sold by a number (especially low value/small fish)

• Primary processing : gutted, headed and gutted (H&G), tailed ; heads only,

• Secondary processing : fillets ; steaks ; chunks,

• Ready to eat, cans, fish with other food commodities

• Packing - packaging : plastic bags, fish in blocks, vacuum packed ; more developed packaging






+ Crustaceans : crabs, lobsters, shrimps

• Whole

• Without heads • Without tails (shimp)

• ‘skin off’

• Different combinations of the above especially for shrimps - cooked or uncooked : HOSO (head on skin on), head off with skin, peeled

+ Molluscs : • cuttlefish, squids, octopus: Whole (with oil removed

obviously…) - rings - tubes - Cut tentacles

• Shellfish: with shells or without shells (ex. in Ethiopia)


Ethiopia:

• Frozen fillets of Nile Perch

and tilapia (local

production)

• frozen products from

Tanzania (road transport an

issue – coming by air)

Madagascar:

• Frozen snapper,

Madagascar

• Dried, dried salted, smoked

fish (tilapia, catfish, others)

– no picture

• ‘3 dents’ By catch of shrimp

trawling (on the balance) -

Pseudotolithus spp.




High value fish farmed product - La Réunion /

Mauritius (picture taken at SAM, La Réunion) for

local consumption (tourism, upper income levels)
















+ National economy: per capita income levels / different

groups of consumers . Fish demand is price elastic




--------------------------------------------------------------------













Estimated average per capita consumption of FISH (kg/year) using latest FAO country profiles data (around 2003)

60

50

40

30


countries

0



Ye





650000,0

550000,0

450000,0

350000,0

250000,0

150000,0

50000,0

-50000,0

Pr jections of average annual

consu ption per country in MT/year

Sudan

DR Congo Tanzania

Uganda

Ethiopia

Madagascar

Kenya Zambia

Sudan Malawi

Others

30000,0

25000,0

20000,0

15000,0

10000,0

5000,0

,0

Project per country in MT/year

South Africa?

Mauritius Eritrea Burundi Somalia

Zimbabwe Comoros

Rwanda

Seychelles

Swaziland

Djibouti

2010 2015


2020 2025 2030 ar Projections by scenario of medium fertility va riant in: United Nations, Department of


2010 2015 2020 2025 2030 Projections by scenario of medium fertility variant in: see previous slide













exporter)












































Marine species



















+




+ Finfish :












• Whole

• Without heads • Without tails (shimp)

• ‘skin off’






Ethiopia:


and tilapia (local

production)




Madagascar:

• Frozen snapper,

Madagascar



– no picture



Pseudotolithus spp.






















Free World Maps - http://www.freeworldmaps.net/africa/


+ National economy: per capita income levels / different groups of consumers . Fish demand is price elastic




--------------------------------------------------------------------












Estimated average per capita consumption of FISH (kg/year) using latest FAO country profiles data

60

50

40

30


10 countries

0





600000,0

500000,0

400000,0

Projections of Average Annual Consumption

per c untry in MT/year

DR Congo Tanzania

Uganda

300000,0

200000,0

100000,0

,0

2010 2015

Year

adagascar

Kenya Zambia Sudan Malawi

Others

2020 2025 2030


Projections by scenario of medium fertility va riant in: United Nations, Department of













exporter)








This image cannot currently be display ed.





































Marine species



















+




+ Finfish :












• Whole • Without heads • Without tails (shimp)

• ‘skin off’





Ethiopia:


and tilapia (local

production)




Madagascar:

• Frozen snapper,

Madagascar



– no picture



Pseudotolithus spp.














STATUS OF THE FISHERIES SECTOR IN MALAWI

Presented to

Workshop on Regional Fish Trade Strategy, Lusaka, Zambia

by

Department of Fisheries Ministry of Agriculture and Food Security

P. O. Box 593 Lilongwe Malawi

25th July, 2011

INTRODUCTION • Malawi - total surface area of 118,484 Km²

• Surrounded by Moçambique, Zambia and Tanzania

• 23% is covered by water bodies of which Lake Malawi is the largest with a surface area of 29,000 Km²

• Other water bodies include small lakes and rivers - Malombe, Chilwa, Chiuta and Shire River

Map of MalawThis image cannoticurrently be display ed.

L. Malawi

Mangochi Lake Chiuta

IMPORTANCE OF THE FISHERIES SECTOR

• The lakes and rivers support the fisheries sector, which plays a crucially important role in the social and economic development of the country -

• 1) Source of food and nutrition, provides – Over 70% of total animal protein intake – About 40% of total protein intake

• 2) Source of employment – Directly employing about 50,000 fishers – Indirectly employing about 400,000 people

…..CONTINUED

• 3) Source of income

– Common commodity of trade in both urban and rural markets

– Ecotourism industry – Export trade for aquarium fish – Contributes 4% to the national GDP

STRUCTURE OF THE FISHERIES SECTOR

• The Fisheries sector is classified as follows: – 1) Capture Fisheries

• i) Small-scale commercial sector • ii) Large scale commercial sector

– 2) Aquaculture

SMALL-SCALE COMMERCIAL SECTOR

• Employs various fishing gears that include; beach seines, open water seine nets,, gill nets, handlines, longlines and fish traps

• Uses dugout canoes and plank boats (with or without engines)

• Fish landings average about 60,000 t/yr

• Species caught include small and large cichlids, Engraulicypris sardella (Usipa) and catfishes

Gears and Craft used by Small-scale Fishers

LARGE-SCALE COMMERCIAL SECTOR

• This is highly mechanised and capital intensive, comprising of; – 1) Pair trawlers – 2) Stern trawlers

• Confined in the southern half of Lake Malawi

• Fishing effort is limited to fishing zones

• Fish landings average about 5,600 t/yr

• Species caught include small to large cichlids

Lethrinops, Copadichromis, Diplotaxodon and Oreochromis spp, and catfish

AQUACULTURE • Over 5,000 people are involved in

aquaculture

• Rearing systems - Ponds, Cages, Recirculating production

systems

• Number of ponds is over 9,000

• Malawi has a high potential for large- scale commercial aquaculture production - Example is cage culture of Oreochromis spp.

(Chambo) by MALDECO Fisheries Limited

• Average annual production stands at 2500 mt

TOTAL PRODUCTION FROM AQUACULTURE

• Fish production from both small holder and large commercial farms has steadily increased from 1,600 tonnes in the 2008 to 2,500 tonnes in 2010.

• This production is comprised of the following: – Tilapia - 93% – Catfish (Clarias gariepinus-mlamba) - 5% – Common carp (Cyprinus) and rainbow trout

(Onchorhynchus mykiss) - 2%

FISH PROCESSING AND MARKETING

• Various fish processing methods are used, and these are: – 1) Sun drying – for small-sized fish – 2) Smoking – for large-sized fish – 3) Para-boiling – for E. sardella (Usipa) – 4) Pan-roasting – for Copadichromis spp. – 5) Freezing and icing – for fresh fish

• Fish is then transported and marketed to both rural and urban markets

FISH EXPORTS AND IMPORTS

• Exports of fish products are informal and limited in volume and go only to the nearby countries of Zambia, Zimbabwe and South Africa.

• Fish imports have generally increased for the past years with 2010 registering total fish imports of 1,400 tonnes valued at USD 96,000.

• Most of the fish imports came from Zimbabwe, South Africa, Tanzania, Mozambique, Namibia, Lebanon, India and China e.g. kapenta (Limnothrissa spp), prawns and nile tilapia

EXPORTS OF AQUARIUM FISH

• Malawi exports aquarium fish to various countries in Europe, America, Asia and within Africa.

• The total exports of aquarium fish for 2010 amounted to 7,199 kg generating revenue of USD 600,000.

CHALLENGES

• Capture fisheries – Overexploitation

– Inappropriate fishing technologies

– Post harvest losses

– Inappropriate fish handling practices

• Aquaculture – Poor growth performance of indigenous fish

species

– Inadequate supply of quality fingerlings

– Inadequate supply of cost effective quality feed

POLICIES AND LEGAL FRAMEWORK FOR FISHERIES DEVELOPMENT

• The Malawi Growth and Development Strategy (MGDS) is the main instrument guiding national economic and social development – Recognises the contribution of fish

• The fisheries sector has the following: 1) The National Fisheries and Aquaculture Policy

2) The Chambo (Oreochromis spp) Restoration Strategy

…..CONTINUED

3) The National Aquaculture Strategic Plan (NASP)

4) The Presidential Initiative on Aquaculture Development

5) The Fisheries Conservation and Management Act

All these instruments aim at developing and managing fish resources for sustainable economic benefits to the nation

INITIATIVES IN FISH TRADE AND EXPORTS

• Technical assistance has been provided by the following:

• EU-ACP Fish I – Institutional strengthening for fish exportation through TradeCom facility. – Restructuring of fishing sector for radical

modification of current practices in line with acceptable safety standards

– Review legislation to include Competent Authority

.....CONTINUED • COMMONWEALTH SECRETARIAT –

Undertook a scoping mission to map out what can work, in view of earlier recommendations by the TradeCom Facility – Proposal to support the sector with development of

regulations which conform to regional market requirements

– Need for capacity in fish handling for fishers, management of safety hazards from aquaculture

– Delivery of courses in food safety and environmental management

CONCLUSION • A huge potential exists for increasing fish

production through both aquaculture and capture fisheries

• This can make Malawi satisfy its local demand as well as exploit the export market

• Therefore, there is need to initiate projects that will eliminate constraints in fish production and limitations in fish exports, viz:

…..CONTINUED

1) Production technology development 2) Resource management and monitoring 3) Fish quality management 4) Capacity building and institutional

strengthening 5) Strategic management 6) Establishment of viable financing

mechanisms

THANK YOU!

PROGRAMME FOR THE IMPLEMENTATION OF A

REGIONAL FISHERIES STRATEGY FOR EASTERN-

SOUTHERN AFRICA AND INDIAN OCEAN (IRFS

PROGRAMME)

REGIONAL WORKSHOP

INSTITUTIONAL CONSTRAINTS TO REGIONAL FISH TRADE:

THE CASE OF FISH AND FISHERY PRODUCTS

KOANE MINDJIMBA

ACP FISH II PROGRAMME REGIONAL FACILITATION UNIT FOR EASTERN AFRICA

Cosmic Executive Lodge, Lusaka, Zambia

25 – 27 July 2011

PRESENTATION OUTLINE • Introduction

• Overview of Constraints to Regional Fish Trade

• Institutional Framework

• Institutional Constraints to Regional Fish Trade: Main Driving Factors and their Implications

• Summary of Implications

• Strengths and Opportunities

• Concluding Remarks and Way Forward

Regional Workshop for the Implementation of a Regional Fisheries Strategy for ESA-IO, Lusaka, Zambia

25 – 27 July 2011

1

2

INTRODUCTION

• Today fish as the most traded food commodity in the world (and second traded commodity after oil), according to available statistics

• Fish trade supports economic growth processes in developing countries by providing an important source of hard cash revenue and foreign exchange earnings, it also fosters REI

• On the other hand, fish trade is said to lead to a decrease in the availability of fish for local population, and hence a decline in food security

• Despite its importance and policy pronouncements to promote REI, fish trade is still facing several constraints (of various natures). This presentation will focus only on institutional constraints (see separate Presentation on Operational Constraints and other Presentations highlighting Issues and Challenges)

• A significant proportion of fish trade in ESA is informal (see below main driving factors and their implications)

Regional Workshop for the Implementation of a Regional Fisheries Strategy for ESA-IO, Lusaka, Zambia 25 – 27 July 2011

3

OVERVIEW OF CONSTRAINTS TO REGIONAL FISH TRADE

Constraints to regional fish trade are of various natures including:

• Marketing and business constraints ( prices, infrastructure, access to markets, insecurity, etc.)

• Technical constraints

• Administrative constraints • Processing constraints

• Supply and demand constraints (see other Presentations)

• Operational constraints (see separate Presentation) • Structural constraints

• Institutional constraints (this Presentation) - these are examined from the policy and regulatory perspectives to enforcement and control

(Note that some of these constraints can fall under various categories, e.g., administrative constraints can be also be considered institutional constraints)


25 – 27 July 2011

4

INSTITUTIONAL FRAMEWORK

• Who are the key stakeholders/players (see previousPresentations): • Public sector: Line Ministries and agencies (e.g., Bureaux of

statistics such as UBOS, national revenue authorities, RECs, RFBs, etc.)

• Private sector: Producers (fishers, processors, traders, exporters, importers, middlemen, etc.), producers’ associations (e.g., EAIFFPA, AFIPEK, TIFPA, UEFPA)

• NGOs, CSOs, private firms, consumers

• What are the institutional arrangements: Respective roles and responsibilities of key stakeholders/players, their interactions and cooperation, including PPP/PPD and ad hoc forums


25 – 27 July 2011 5

INSTITUTIONAL CONSTRAINTS TO REGIONAL FISH TRADE: MAIN

DRIVING FACTORS AND THEIR IMPLICATIONS

• Policy formulation at national level: Inadequate policy and support for trade promotion and diversification as a result of poorly functioning concerned government agencies (including abuse of power), inadequate investment codes and incentives, weak institutional framework and governance

• Policy formulation at regional level: Non harmonised tariff and customs policies, absence of trade agreements, low regional market integration

• Trade policy management and implementation: Poor operation of government trade support agencies and services (such as export promotion and investment promotion), inadequate M&E systems Regional Workshop for the Implementation of a Regional Fisheries Strategy for ESA-IO, Lusaka, Zambia

25 – 27 July 2011

6


DRIVING FACTORS AND THEIR IMPLICATIONS (CONT’D - 1)

• Legal and regulatory framework and market information: Non-existent, outdated or fragmented legal framework to ensure movement of labour, goods, services and capital

• Inadequate information on regulatory requirements (e.g., quality/hygiene standards, customs documents such as certificates of origin and conformity, procedures), knowledge and information on the market. As a result, many traders will be compelled to engage in unrecorded trade across borders (EAC survey in 2008)

• Even when such mandatory trade-related requirements do exist, they are not always easily accessible (e.g., most offices for phytosanitary certificates are located at the airports), and hence some of the remote traders find it difficult to comply with them


25 – 27 July 2011

7



• Enforcement and control: Limited capacity for inspection and control within both public and private sectors

• Customs procedures and formalities: Existence of non-transparent or costly export, import and customs formalities and charges in the exporting and importing countries, overly bureaucratic and lengthy procedures. Survey findings suggest that, on average, Africa has the longest and most costly delays in the world (35 to 42 days as against 10 days for OECD countries, see table below)


25 – 27 July 2011 8

Table: Average custom delays, number of required documents

and trade-related costs in Sub-Saharan Africa

Region EXPORT IMPORT

No. of

document s

required

Days spent Costs (US$/

20-foot

container)

No. of

document s

required

Days spent Costs (US$/

20-foot

container)

Eastern Africa 7.9 36.2 1,578 9.1 44.3 2,076

Western Africa 8.3 30.2 1,297 8.6 36.8 1,602

Central Africa 8.3 44.1 2,257 9.8 55.2 2,430

Northern Africa 7.0 20.4 950 8.2 27.2 1,203

Southern Africa 8.0 31.4 1,588 9.2 37.0 1,674

SSA Average 8.0 34.8 1,630 8.9 42.4 1,944

OECD average 4.5 9.8 905 5 10.4 986


9



• Complex methods of certification and stamp fees

encourage bribery at borders (e.g., Busia and Malaba borders points between Kenya and Uganda)

• Harassment by public officials and customs authorities

• High clearance fees force many traders to resort to informal crossing point or unofficial routes


25 – 27 July 2011

10



• TBT (including prohibitive import duties) and NTB (including complex import/export licensing regulations designed for established companies only) to trade and other entry barriers prohibit potential competitors in various ways

• Partnership, cooperation and dialogue: Little PPP/PPD and cooperation (e.g., ad hoc forums and vehicles for dialogue), as well as little interaction and trust between border agencies and private sector in view of compliance with existing regulations


25 – 27 July 2011 11



• Budget allocation: Poor government objectives and meagre budget allocation lead to underinvestment in essential infrastructure and facilities (fisheries as a subsector within ministries in most countries of the region, except for Kenya)

• Quality assurance/hygiene and control: Inadequate SPS legislation and standards, limited capacity in SPS in both the public (e.g., bureaux of standards) and private sectors, and lack of documented best practices leading to poor food hygiene and post-harvest losses


25 – 27 July 2011 12



• Poor preservation, processing and storage facilities (at borders to implement control and monitor quality of trans- border goods) not only lead to poor quality of products (perishable) and post-harvest losses but also encourage trade in “small” quantities, and ultimately a reduction in the governments’ revenue and volume of trade

• Poor communications (road, transport and telecommunications) entail high transport and business costs

• Inadequate ITC infrastructure at customs border posts, and hence lack of automated market information systems

• Porous borders


25 – 27 July 2011 13



• Cumbersome customs procedures encourage ICBT (otherwise called “illegal trade”, “underground trade”, unregistered trade”), and hence evasion of tax on the part of both the exporting and importing countries (since tax is not paid at the official entry point). This further forces traders to engage in bribes to police officers and inhibit their ability to adjust quickly to changing market conditions

• Presence of parallel money markets at the border also encourages ICBT

• Lack of working capital and credit facilities


25 – 27 July 2011 14



• Weak monetary situation and instability of foreign exchange rates, thus affecting business plans

• Appalling system of road locks and weigh stations (e.g., by Kenya especially between Uganda, Rwanda, and Burundi) results in lost time and added expenses for traders

• With the institutionalisation of parallel local taxes at the unofficial crossing points (e.g., by local councils in Busia) traders end up incurring additional costs not planned for

• Political instability, existing conf licts and insecurity (e.g., once in DRC, Rwanda, Ethiopia/Eritrea, Southern Sudan, Somalia)


15



• Poor organisation of traders (few associations and codes of practice or guidelines, poor cooperation and coordination)

• Examples of trading malpractices: Passing commodities through “unofficial routes”, evading trade-related regulations and duties (even through official routes), under-declaration of the quantities, weight or value of goods so as to pay lower customs duties (where applicable), falsifying the description of products (or misclassification so that they are treated as products with lower or none tariffs), mis-declaration of country of origin to avoid any applicable taxes), bribery of customs officials and police officers. These lead to ICBT

• Examples of charges involved in ICBT transactions: Bribes and fines, taxes and customs duties, trading license and market dues, rental charges, security charges, transport charges, miscellaneous


16

SUMMARY OF IMPLICATIONS OF ICBT

• Erosion of state revenues (which could be invested productively) including tax evasion

• Difficulty to formulate appropriate/informed trade and macroeconomic policies (due to lack of data and information)

• Limited possibilities of economic growth and development

• Loss of employment and income generation for many people

• Loss of competitiveness and weaker formal private sector development due to unhealthy competition with formal traders and enterprises

(Note that participants in the ICBT are both from informal and formal firms)


25 – 27 July 2011

17

STRENGTHS AND OPPORTUNITIES • At regional level: Existence of institutional framework and

RECs and RFBs and RFMBs (e.g., NEPAD, SADC, COMESA, IGAD, ECA , CEPGL, Alliance for Commodity Trade in Eastern and Southern Africa – ACTESA, Zimbabwe Cross Border Traders Association – ZCBTA, Small Industry Development Organisation – SIDO in Tanzania, LVFO, LTA) and their actions in view of rationalising and harmonising trade and customs in the region

• CSOs, NGOs and private companies • Existence of fish processors and exporters associations

(around Lake Victoria at both regional with EAIFFPA and national levels with AFIPEK, TIFPA and UFPEA): See self- monitoring and control initiative and inspections


25 – 27 July 2011

18

STRENTHS AND OPPORTUNITIES (CONT’D) • Regular ICBT surveys conducted and other initiatives

with a view to generating information on informal external trade (e.g., UBOS and BOU, COMESA) and ICBT (certain countries including Rwanda and Uganda through UBS and CBU)

(see Presentation on Regional Trade Opportunities for more details)


19

CONCLUDING REMARKS AND WAY FORWARD • Legal and institutional constraints are barriers to trade in the region

• They encourage ICBT. In fact, they limit the participation in the formal trade by a large number of traders while many others to circumvent

these constraints by trading informally

• Various sources (and confirmed by previous Presentations) suggest that ICBT is significant and vital to the region’s economic development (it tends to outweigh formal trade)

• Comparative geographic (in terms of availability and distance to

markets as well as food habits and preferences) and profitability (higher prices) encourage cross-border trade (both formal and

informal)

• Thus, there is need, if we are to promote regional fish trade and to

overcome the identified constraints, for the Competent Authorities and other stakeholders to:

• Harmonise policies and standards


25 – 27 July 2011

20

CONCLUDING REMARKS AND WAY FORWARD (CONT’D)

• Formalise/have control over ICBT with a view to getting data upon which informed decision could be made (see case of Uganda)

• Simplify (through friendly systems that would encourage the passing of goods at borders posts) and expedite customs procedures and documents (Simplified Trade Regime, STR)

• Improve basic infrastructure including road, markets (Kirumba Fish Market in Mwanza, Tanzania as a good example to emulate)

• Create cross-border database and to make the information available and affordable

• Develop regional value chains and linkages

• Promote PPD (e.g., establishment of a mandate through MoU, formal government mandates, temporary initiatives to align with existing agencies, set clear goals and reach them, set up a M&E system to monitor and evaluate outcomes)

• Learn/share experiences

• Promote product diversification and regional integration

(see Presentation on Regional Trade Objectives) Regional Workshop for the Implementation of a Regional Fisheries Strategy for ESA-IO, Lusaka, Zambia

25 – 27 July 2011

Thank You!


25 – 27 July 2011

21 22

� Regional Trade in Africa cuts across regional blocs formed to collaborate on economic and social development (COMESA, EAC, SADC).

� Regional trade objectives are derived from

regional, national and sectoral policies of relevant countries, (including concerns of the stakeholders).

1. Unharmonised measures for regional fish trade (Review

and harmonise, develop, adopt policies regulations,

strategies and management plans);

2. Informal Trade with a big component of Illegal Unregulated

and Unreported fish trade;

3. Insufficient information and statistics on regional fish trade

(including the value-chain and extent of the market)

4. Inadequate infrastructure for regional fish trade (processing

including VAP), collection centres, distribution facilities,

receiving centres, markets) (fish inspection areas including

border posts, electricity, feeder roads, etc),

5. Inadequate fish inspection (guidelines, protocols, Manuals, standards, designated/gazetted areas);

6. Political will and Governance (marginalization of fisheries (position, budgets), vulnerability of fishers, highly dependent on competent authorities);

7. Insufficient mobilization of fish traders and processors (BMUs -, focus on fish traders/processors is weak, funding, forum );

8. Insufficient institutional capacity (human, units and infrastructure)

9. Inadequate support for Aquaculture (seeds, feeds, market, technology transfer, aquaculture associations)

If addressed it will contribute to more than 50% improvement in

SMART Objectives (time frame, milestones, monitorable indicators, outputs)

1. Harmonise and develop national and regional measures for Regional Fish trade (regional fish trade policy, legislation, strategy, management plans and implementation) (by 2012)

2. Establish regional fish quality and safety standards for regional fish trade (smoked, sundried, salted products, chilled and frozen products e.g. EAC Sanitary and phytosanitary standards for capture, marine and Aquaculture) (2013)

3. Establish a regional fish trade information and Database system (2013); (information communication and outreach program)

4. Generate information on regional fish trade (value-chain, Value-addition, marketing studies, 2011-)

4. Establish a regional plan of action to deter, prevent and eliminate IUU in fish trade (includes law enforcement (MCS)) (2014

5. Establish adequate infrastructure for regional fish trade (e.g. EAC crossborder markets project, improved fish processing & value- addition, ecolabel, bilateral agreements e.g DR Congo) (2016)

6. Establish a regional fish inspection system for regional fish trade (Regional Technical working group(s), protocols, standard operating procedures, designated/gazetted fish inspection areas, training of fish inspectors), 2014

7. Capacity building of regional fish traders and

processors (2012 - 2015 ) (Associations/ organisations (Co-management), training, Code of practice, Self-policing (MCS), forum, financing)

8. Strengthen fisheries and related institutions (infrastructure.( offices), inspection units, human capacity (by 2016)

9. Regional Strategy and Action Plan for Aquaculture

10. Create awareness and sensitise stakeholders on Regional Fish trade (2011 – onwards) (meetings, workshops, print and electronic media)

Coordination and implementation:

� Trade blocs (IOC, COMESA, EAC, SADC and specialized regional institutions),

� Competent Authorities on Fisheries and Trade in ESA-IO Region

� Technical regional and national working groups (to be established)

� Contribute to Poverty alleviation, food security and improved delivery of public and private services, GDP and multiplier effect to other sectors

� Regulated/formal trade,

� Access to bigger markets,

� increased fish consumption,

� Improved incomes and revenues for fish dealers and governments

� Access to high nutritive food (protein, Omega-3 (Nile perch & Dagaa)

� Harmonised Fish quality and safety standards & Reduction in post-harves losses

� Strengthened fish inspection, law enforcement and data collection;

� Improved fish handling practices for fish and fishery products destined for Regional Trade,

� Fish trade information and statistics

� Strengthened fish traders, processors and marketing organisations

� Enhanced political will and good governance

� Deepening of Regional Cooperation amongst regional blocs, nations and institutions and traders

� Strengthened interpersonal relationships amongst the key players at all level

� If the objectives are achieved it will contribute immensely to improvement of Regional and Domestic trade in the regional and enhance competitiveness in international market

THANK YOU

in

Fish production in the region 2500000,0

2000000,0

How to use a scarce resource

By Bent Larsen, Trade Analyst

TAS, IRFS ESA-IO Workshop Lusaka 25-27/07/2011

1500000,0

1000000,0

500000,0

,0


Aquaculture

Marine areas

Inland waters

Regional Trade – Food Security There is a need to increase food security levels

• Fish is an important part of the diet only in a few

countries

• A potential source in other – scope for increases consumption

• Fish is still a comparatively inexpensive source


REGIONAL TRADE – Advantages Increased trade support the development

ambition:

• Generates jobs locally – leading to socio- economic growth

• Known product is marketed locally and regionally

• Development of skills and competence

• Fosters the process of REI


REGIONAL TRADE – REI Trade Agreements

Binding agreements

• CU –Example SAC

• FTA – Examples:

• SADEC-Protocol on Trade (13 countries);

• EAC - FTA 5 countries

• IO-FTA 2 countries have signed (it is open for membership)


REGIONAL TRADE – REI Trade Agreements2

....at different stages of development and implementation

• Negotiations on important aspects as RoO

• Different tariff levels apply

• List of excluded products

• Trade facilitation

• Supply side constraints


Supply side constraints

• Extra costs for bringing and delivering goods and services

• Limitations in physical infrastructure • Often irregular utility services • Weak monetary situation • Little diversification

• Limited scope for supply chain systems • Economies of scale are hard to achieve • Poor terms of trade

Country Imports Exports Trade balance ToT

Burundi 36 207 171 5.75

Comoros 1,392 14 -1,378 0.01

Congo, DR 88,769 391 -88,378 0.00

Djibouti 2,239 101 -2,138 0.05

Eritrea 315 861 546 2.73

Ethiopia 1,857 508 -1,349 0.27

Kenya 9,937 75,594 65,657 7.61

Madagascar 28,093 160,537 132,444 5.71

Malawi 1,765 294 -1,471 0.17

Mauritius 306,052 214,987 -91,065 0.70

Rwanda 1,787 94 -1,693 0.05

Seychelles 63,584 97,155 33,571 1.53

Somalia 3,745 4,597 852 1.23

Sudan 1,970 674 -1,296 0.34

Swaziland 4,050 203 -3,847 0.05

Tanzania 3,959 188,218 184,259 47.54

Uganda 1,051 134,554 133,503 128.02

Zambia 8,935 1,295 -7,640 0.14

Zimbabwe 4,776 1,453 -3,323 0.30 TAS, IRFS ESA-IO Workshop Lusaka 25-27/07/2011

TOTAL TAS

5, I

3R4FS,3

E1SA2

-IO Workshop8

L8u1sa,7ka

3275-27/07/2011

347,425 1.65

Regional Trade – In Fish Product

Figures

Changing Position of Fish in Global

Trade

Inter-regional trade:

• Only 1.2% of the total export value of fish product is

exported to countries within the region

• While 4.3% of the value of imports come from the

region


20.0

15.0

10.0

5.0

0.0

-5.0

1000 million US$


1983 1993

2003

Hard Currency – The Ambition

• Result: Most ESA-IO member countries are factor- driven and countries compete based on their factor endowments

• The ambition is to graduate to the next level - to become an efficiency driven economy


Improving Trade Capacity

Two key aspects:

What the industry needs to do

What the governments need to do


in

in U

S$

Get Export Industry Approved No Approved indurty = no exports to e.g. EU

markets

• Improvement of quality assurance systems –

own control systems

• Improvement in managerial practices

End goal : Meeting standards


International Standards and Practices

in Food Safety

• Codex Alimentarius (WHO) – consumer protection

• International Standard Organisation (ISO) - technical

• Good Manufacturing Practice (GMP),

• Good Hygiene Practice (GHP),

• Sanitation Standard Operating Procedures (SSOP- USA) - quality systmes element

• Prerequisite programmes (PRP-EU) – same

• Hazard Analysis Critical Control Points (HACCP) – Originally from USA but globally accepted


Building an approvable industry

Total Quality Assurance Pyramid

HACCP Pre-

requisite Programmes

Factory Design and Layout


GOLDEN RULES

• Make it easy for staff to do what you want them to do

• and

• Difficult to do what you don’t want them to do.


1000000,0

An approved industry Needs to master the following:

• Pre-requisite programmes are in place and controlled

• A quality control manual and HACCP plan is in place

• The plan is product line specific

• Has well defined measure points what to measure and how to measure

• Remedying actions to be taken are identified

• All is documented and is verifiable

900000,0

800000,0

700000,0

600000,0

500000,0

400000,0

300000,0

200000,0

100000,0

,0

Export volume

Import volume

Export value

Import value

TAS, IRFS ESA-IO Workshop Lusaka 25-27/07/2011 TAS, IRFS ESA-IO Workshop Lusaka 25-27/07/2011

US

$ p

er

4,50.00

4,0.00

3,50.00

3,0.00

2,50.00

2,0.00

1,50.00

1,0.00

,50.00

Africa

Americas

Asia

Europe

Oceania

What the Government Needs to

Provide • A rules based trade regime that is industry friendly

• An institutional structure to support trade

• A food safety control laboratory

• Or access to such lab in neighbouring countries

• A Competent Authority (CA) is in place

• If no CA is in place then the Gov’t cannot provide the guarantees under the health certificate as required by trading partners

,0.00



The WTO rules based trading system Principles:

1 Most Favoured Nation principle – no

discrimination of other nations

2 National Treatment Principle - means treating foreign and local products equally.

• Three basic rules - GATT for trade in goods

• Common standards on e.g. food safety – SPS agreements - and technical areas are covered by the TBT agreement – 60 sub-agreements in total – NAMA for Fish - WCO


Rules on fair trading Not all nations trade fairly:

• Dispute Settlement Mechanism - Measures that can be used:

• Anti-dumping measures -Dumping has to be proved

Temporary tariff increases

• Subsidies and Countervailing Measures

Use Safeguards actions – temporary tariffs, quota restrictions


Does it Pay?

• Yes as trading with e.g. EU will be based on EPAs that are fully compliant with WTO – EPAs are still negotiated

• ESA-IO relevant FTAs also have to be compliant

• Where trade takes place - 97% of world trade in 2008 carried out by 153 members

• Staying outside actually means that your trading partners most likely are WTO compliant and will have to ask you to trade on their premises

• Getting on the inside requires patience and is costly TAS, IRFS ESA-IO Workshop Lusaka 25-27/07/2011

Challenges • How to find a path that allows due regard both to food

security aspects and hard currency generation

• Find common grounds for discussion important aspects as RoO for fish products

• Make allowance for sub-regional differences

• Find a suitable organisational set-up so that most voices are channelled this way to improve the negotiating position under bilateral (and multilateral talks)

• Seek economic diversification development so fish products can be produced by local capital


Implementation of a Regional Fisheries Strategy (IRFS)

RESULT 4

Regional Trade Development

KE3: Chris Short

INTRODUCTION • why regional trade

• considerations for regional integration

• modules & outputs / typical activities

• budget / schedule

• focal points

Why not Global markets?

Global Markets – EU, North America, Japan…traditional markets…. – High demand, high potential rewards - markets which have traditionally become the focus for export trade for trade from the region. – preferential tariffs, competitive advantage for ACP countries….but – a playground for sophisticated / big business:

• reliable sources of fish / fish products, consistency of supply • logistics : delivery / storage / handling – excellence/ low cost • quality & hygiene standards, testing requirements (sophisticated / complex ) • Political savvy is also part of the job

– Issues • margins being eroded from various angles • global low cost competition a serious issue….resulting in…. • pressure on costs of production …..needs larger enterprises to compete • stocks pressures, environment pressures, consumer pressures…. • increasing costs -a fact of life to satisfy these markets

– Serious attention to these requirements is outside the immediate reach of many countries in the ESA-IO region – regional markets are a better option! – Competitive advantage / performance in global markets …. de plus en plus di fficile

Why Regional Trade? Regional Markets – Supply & Demand

HIGH DEMAND – populations growing / per capita consumption growing – conservative – 19 countries here - estimate demand would be approx. 1 MMt per year. – With present population growth this will likely double in the next 30 years – add to this growing economies / higher incomes / higher prices

– there is an increasingly VIABLE TRADE POTENTIAL in the region

As noted yesterday - EAS-IO trade value = EUR 1.3 Billion - we need to maintain what exists, but prepare for expansion with a regional focus

Estimated Mt / Year Consumption of

+5 +10 +30 Burundi 20,333 22,143 32,792

Comoros 1,842 2,063 3,415

Djibouti 2,147 2,345 3,403

DR Congo 165,244 186,685 315,447

Eritrea 13,458 15,145 27,569

Ethiopia 202,298 222,042 337,632

Kenya 101,746 115,229 197,571

Madagascar 52,334 59,936 104,887

Malawi 38,446 45,244 85,320

Mauritius 2,937 2,997 3,351

Rwanda 26,929 30,707 55,300

Seychelles 119 128 172

Somalia 23,216 26,732 43,676

Sudan 107,944 120,646 194,821

Swaziland 2,824 2,983 3,959

Tanzania 114,702 133,618 244,869

Uganda 85,764 99,376 185,773

Zambia 33,491 39,261 70,980

Zimbabwe 30,831 34,190 52,474

1,963,411

Regional Markets

Why Regional Trade?

SUPPLY - INSUFFICIENT to meet growing demand – if demand is growing – where will the supply come from?

• new supplies must be considered, especially with pressure on stocks • more production / import • aquaculture is the reality for supply in the region – actually at current rates of growth, it will not meet growing demand

• Also preservation techniques / reduction of losses are critical in the process of maintaining supply – not to forget loses from IUU fishing…..better use of bycatch, etc.

Logistics • try to imagine – growing demand, efforts from aquaculture, and others to increase supply… in the context of poor trading systems – logistics, quality management / market infrastructure, poor capacity, poor training….

• Try to imagine this without a plan (a strategy) in place

• Being prepared for this requirement, even partially will involve SIGNIFICANT action

REGIONAL INTEGRATION

• Regional trade environment:

• SIGNIFICANT ACTION

• REGIONALLY INTEGRATED ACTION

• We don’t have a choice – we have to work

together (Raj Mohabeer – yesterday)

– Infrastructure (transport / logistics) • Poor transportation network + connections / delays are common

• poor maintenance for roads and vehicles / breakdowns

• marketing infrastructure – fish landing sites, ice plants, cold stores, auctions halls, distribution centres…. undeveloped / poorly managed

–Trade Facilitation

• customs procedures • borders delays, etc. • tariff differences / non tariff barriers / illegal “tariffs…”


• improved regional fish trading structures are required

– RECs – trade mandate, but lack dedicated fisheries / fish marketing people

– fish trade offices – sharing information, promoting national / regional fish trade

– market information systems that span the region and work

– connections to business support, chambers of commerce, investment promotion organizations

• strategic marketing infrastructure – landing sites, auctions halls, ice plants must be expanded and improved regionally – distribution systems must be planned across borders for intra-regional trade

– operations management improvements to protect investments

• private investors – encouraged to enter the market, policy support for national / foreign investment

• regional / national level market support – attendance of trade shows, branding the region, selling the sector…

REGIONAL INTEGRATION – Quality / hygiene standards

• fish trade is all about delivering fish to the customer at the desired quality

• Desired quality needs to be defined and standardised = minimum “safe to eat”

• harmonised legislation dictating quality standards • harmonised quality standards • training in those standards • more training in those standards • harmonised standards / procedures at laboratories and

inside competent authorities • agree / adopt and implement regional guidelines for quality /

hygiene and disseminate / communicate


• aquaculture - special consideration – large / small scale, cages / ponds, land / marine based? – I believe there is a place for small scale farming, but large scale farming is required to make a difference regionally – Environmental impacts are critical – Aqua-parks concept – economies of scale – Investment appraisal - how do we take a (business) concept and make it happen? – technical / financial feasibility analysis, definition of business models, sell ideas to investors, open up to investment…implement, implement, implement.. – too many Road Maps and not enough Implementation Plans – When will this happen? Who will do it?

RESULT 4: APPROACH

Result 4 A regional trade strategy is produced to ensure access to

domestic, regional and export markets

TOR

MODULES OUTPUTS

typical activities / actions

RESULT 4: APPROACH

Three Modules have been prepared to structure the approach to Result 4 and address TOR

Module 1: Development of trade strategies at national

and regional levels

Module 2: Implement strategic improvements in

production & supply of fish

Module 3: Implement improvements pertaining to Quality & Hygiene aspects of trade

Module 1:

Development of trade strategies at national and regional levels

Outputs

• ESA-IO trade readiness requirements are outlined, developed and implemented for inclusion in national strategies

• Fisheries trade strategies prepared to maintain and improve access to export markets for fisheries

Module 1: Typical Actions

Development of trade strategies at national and regional levels

• regional market (supply and demand) assessments • regional trade assessments – the good, bad and ugly, what works, doesn’t work • assisting selected countries to be export ready • support trade strategy development process – with regional stakeholder workshops • training for trade negotiations • facilitate involvement (selected countries) in regional fish trade shows – marketing the region

Module 2:

Implement strategic improvements in production & supply of fish

Outputs • Identify and assess strategic marketing infrastructure in the sector: concrete actions to enhance performance are supported

• Production / supply of fish and fisheries products improved

• Initiatives to enhance competitive positioning for sustainable trade are supported

• Implement & promote market diversification opportunities


Implement strategic improvements in production & supply of fish

• strategic infrastructure - identify issues and improve (landing sites, auction systems, ice machines, poorly managed / maintained, training and other assistance)

• value-chain improvements, identify value-added opportunities, encourage investment in value-added products

• encourage investment in the sector (e.g. aquaculture), feasibility analysis, business models, investment promotion…

• support competitive positioning / eco-certification / responsible practices in fisheries. Responses to consumer demands from EU and others

• diversification activities – identification, training, aquaculture, ecotourism…)

Module 3:

Implement improvements to Quality / Hygiene

aspects of trade

Outputs

National capacities to ensure quality and hygiene conditions for export of fish and fisheries products strengthened

(regional harmonization)


Implement improvements to Quality/Hygiene aspects of trade

• testing laboratories /competent authorities – define what is needed and where / provide training • regional harmonization of quality / hygiene practices • regional hands-on training for maintaining quality

• training of trainers, training materials development

• regional guidelines published + national training implementation

Recap

Module 1: Development of trade strategies at national and

regional levels

Module 2: Implement strategic improvements in production &

supply of fish

Module 3: Implement improvements pertaining to Quality &

Hygiene aspects of trade

Resources

Under Result 4 • Short Term Experts (STEs)

– STEs are available to assist with Result 4. Approx 1,650 days allocated – average 60 days per month from now

• Programme Budget – EUR 400,000 for training / workshops – – average EUR 19,000 per month from now – must be allocated in the

next 21 months – Hope to expand this budget by reallocation from other budget

lines…. It is too small! – More activity is possible, with integration of the 5 result areas,

particularly food security which is intrinsically related to trade

• Schedule: approx 27 to end of project

Focal Points

SMART FISH - needs you!

Thank you

So

uth

Tan

zan

ia

Outline

Satish Hanoomanjee

Lusaka workshop

July2011

• Production

• Exports & Import

• Consumption

• Trends

• projections

Fisheries production in Africa

• Average annual growth of 3.4%

• Production just 5% of global production (142 M)

• Capture fisheries growth 0.6%

• Aquaculture growing at 9% annually. Presently stands at 1.3% of global production with Egypt as the main producer.

Fisheries Production (2006- 2008)

Main Producing countries (2006-2008) 9000,0 1200,0

8000,0

1000,0

7000,0

6000,0

5000,0

800,0

600,0

4000,0

400,0

3000,0

200,0

2000,0

,0

1000,0

,0

1950 1956 1962 1968 1974 1980 1986 1992 1998 2004

Marine capture Inland capture Aquaculture Marine capture Inland capture Aquaculture

Aquaculture production (1989-2008) Consumption by species

1000,0

900,0

Crustaceans

2% Molluscs 1%

800,0

700,0

Other marine fish

10%

600,0

500,0

Demersal fish

17%

Pelagic fish

36%

400,0

300,0

200,0

100,0

,0

1989 1991 1993 1995 1997 1999 2001 2003 2005 2007

Egypt Nigeria Uganda Other

Freshwater fish

34%

Top ten consumers

1400,0

1200,0

1000,0

800,0

600,0

400,0

200,0

,0

• The Seychelles are the largest consumer of seafood on a per capita basis, with a supply of 64.3 kg per person, followed by Gabon (36.5 kg), Ghana (28.6 kg) and Sierra Leone (27.1 kg).

• Fisheries consumption in Africa is low compared to the rest of the world, accounting for 7% of global consumption in 2007.

• Average per capita consumption is also low by global standards, reaching 8.4 kg per person in 2007 compared to a global average of 17 kg

• Case: Namibia China Nigeria Egypt (16kg) Ghana South Africa Uganda DRC (6kg) Morocco Senegal Côte d'Ivoire Cameroon

(9kg) (29kg) (8kg) (13kg) (8kg) (25kg) (14kg) (14kg)

Demersal fish Pelagic fish Other marine fish Freshwater fish Crustaceans & molluscs

Trade

• Africa’s share in global exports continues to be small

at just under 5%.

• Morocco, Namibia, South Africa, Mauritania and Senegal – are among the top 50 global fish exporters

• Africa has a trade surplus of around US$ 1.6 billion, with 24 African countries running a trade surplus while 29 countries run a deficit

• The vast majority of African exports are destined for European markets (mainly Spain, France and Italy),

• Case of Namibia

Trade

• Japan, is also an important market, though only for a

few African countries, including Mauritania, Tunisia and Morocco.

• Intra-African trade accounted for just 11% of African exports in 2006-2008, up from 7% in 2000-2002.

• Global fisheries exports expanded significantly over the past decades, with an annual average growth rate in trade values of 8.3% between 1976 and 2008. Europe and Asia were the main drivers of growth in both imports and exports FAO (2010).

Export volume (1976-2008) Fisheries exports

1800,0 5000,0

1600,0

1400,0

4500,0

4000,0

1200,0

1000,0

800,0

600,0

400,0

3500,0

3000,0

2500,0

2000,0

1500,0

1000,0

200,0 500,0

,0 ,0

1976 1980 1984 1988 1992 1996 2000 2004 2008

Volume Value

Imports Imports

• The continent plays a more important role as a market

for fish, accounting for around 11% of global imports

• In terms of value, however, African imports are low at around 3% of global value.

• Nigeria is the world’s fourth largest importer in terms of volume (5.4% of global imports) after China, Japan and the US, but only 23rd in terms of value (0.8%).

4000

3500

3000

2500

2000

1500

1000

500

3000,0

2500,0

2000,0

1500,0

1000,0

500,0

0 ,0

1976 1980 1984 1988 1992 1996 2000 2004 2008

Volume Value

Fisheries Imports Sources of African Imports

1000,0

900,0

800,0

700,0

600,0

500,0

400,0

300,0

200,0

100,0

,0

2000-2002 2002-2004 2004-2006 2006-08

Europe Asia Africa North and Central America Oceania South America

Main African Importers

2000,0

1600,0

1200,0

800,0

• As a general trend, African countries tend to export higher value fish and import lower value fish.

• For the entire continent, the value per unit of export is US$ 2.8, compared to a value of import of US$ 0.7

• By global standards, Africa’s export unit values are still low. E.g Côte d’Ivoire received the highest value per unit (US$ 4.5, 68th in the world) compared to US$ 26.8

for Switzerland

400,0

,0

Nigeria Ghana Côte d'Ivoire Egypt Mauritius Cameroon South Africa Seychelles DRC Benin

Crustaceans, molluscs Fish (dried, salted, smoked) Fish (fresh, chilled, frozen) Fish (prep or pres) Meals, Oils

Trends – Main fisheries exporters by

production types

Export destinations

1000,0 4000,0

900,0

800,0

3500,0

700,0 3000,0

600,0

500,0

2500,0

400,0

300,0

200,0

2000,0

1500,0

100,0

,0

1000,0

500,0

Marine capture Inland capture Aquaculture

,0

2000-2002 2002-2004 2004-2006 2006-08

Europe Asia Africa North and Central America Oceania South America

Export destinations

• The vast majority of African exports are destined for

European markets, a trend that has persisted over the past decade .

• Asia is the second largest market.

• Intra-African trade accounted for 11% of African exports in 2006/2008, up from 7% in 2000-2002.

• Spain, France and Italy are the largest importers of African fisheries products, purchasing around half of Africa’s exports in 2008.

• Japan as the fourth largest importer received around 8% of African exports.

Projections • Demand for fisheries products is expected to rise in

the future. Based on current demand, another 27 million tonnes of fish would be needed to maintain the present level of per capita consumption in 2030. FAO (2010).

• Developing countries – where the population is projected to increase from 5.6 billion in 2009 to 7.9 billion by 2050 and an additional 250 million to 310 million people will be urbanized by 2015 – are expected to be the main drivers of future consumption growth.

INFOSA

Conclusion:

• With expected growth in global demand for fish products, African exporters could explore opportunities for expanding existing and targeting new markets, including through diversification of both export destinations and products. Greater integration into global fisheries supply chains could also provide additional market opportunities for African fisheries products.

• Case: oyster exports to Dubai/ Abu Dhabi

Outline

Satish Hanoomanjee

Lusaka Workshop

July 2011

• Trends

• Projections

• opportunities

INFOSA

• Southern and Eastern Africa’s population is close

to 500 million, out of which over 5 million are employed in fishing and aquaculture activities.

• The region is characterised by impressive fisheries resources, both inland (1.4 million tonnes in 2008) and marine (1.7 million tonnes).

• The real potential of the fisheries and aquaculture sector is yet to be thoroughly assessed.

Trends

• Aquaculture is establishing itself in S&E Africa, amounting to 100,000 tonnes in 2008.

• The environment is generally well suited to aquaculture, but with fast increasing populations resulting in reduced per capita consumption of fish, African countries will need to vigorously promote aquaculture, enhance natural fish stocks where possible, and promote effective fisheries resource sustainability measures to meet productivity requirements.

• To date high value marine fisheries exports have primarily

been exported internationally, while inland fisheries Top 10 Aquaculture Producers

1% 0%

0% 0%

products (with the prime exception of Nile perch), are exported to countries mostly in the S&E African region.

• African fish products exported internationally have tended to be sent as a relatively unprocessed “commodity”. Further processing occurs in Europe, thus benefitting the Europeans in terms of jobs and greater profit.

• Only recently has more emphasis been placed on value addition and producing “value added” fish products within Africa. Value addition also creates a whole new service sector in terms of employment and skills development, strengthening the economic base of the country.

11%

1% 1% 1%

6%

79%

Egypt

Nigeria

Uganda

Madagascar

Kenya

Zambia

Togo

Rwanda

Congo Dem R

Zimbabwe

Country 2002 2003 2004 2005 2006 2007

South

e e e

g

Tanzania, United Rep.

g

321,485 395,004 419,420 444,585 406,069 512,968

291,749 332,362 362,484 376,924 458,531 485,570

68,414 75,027 84,202 109,424 160,250 205,819

162,733 210,869 180,167 191,901 199,423 197,763

152,828 86,152 73,499 132,840 162,275 186,358

119,513 134,345 117,569 144,646 131,057 168,640

87,955 24,143 103,670 143,258 146,951 125,890

in

in

US$1000 Source: FAO FISHSTAT 2010

900,000

800,000

Fig 4: Southern and Eastern Africa exports of seafood

2,500,000

Volume

Southern and Eastern Africa fisheries export values (Main

countries, US$1000 Source: FAO FISHSTAT 2010

700,000 Value 2,000,000

600,000

500,000

400,000

300,000

200,000

100,000

1,500,000

1,000,000

500,000

0 0

Fish Consumption in S & E Africa - 2007

70

60

50

40

30

20

• In Tanzania, the popular fish dagaa is carried across borders in

small quantities of 20-40kg to avoid taxation. In fact, depots close

to the borders have even been established.

• Need to develop good data collection and analysis system and

most of all dissemination of same to stakeholders and decision

makers.

10

0

• Zimbabwe has the capacity to boost production by

utilizing the 10,000 dams constructed for water storage. These reservoirs can be used for fish farming.

• Poachers encroach in areas set aside as breeding grounds and introduce error margins in yield estimates. Thus fish being caught is unaccounted for, thereby seriously affecting management decisions.

Projections • Demand for fisheries products is expected to rise in

the future. Based on current demand, another 27 million tonnes of fish would be needed to maintain the present level of per capita consumption in 2030. FAO (2010).

• Developing countries – where the population is projected to increase from 5.6 billion in 2009 to 7.9 billion by 2050 and an additional 250 million to 310 million people will be urbanized by 2015 – are expected to be the main drivers of future consumption growth.

Projections and opportunities

• Increases in fisheries demand will be driven by expected urbanisation. In Nigeria, for instance, the urban market, the main destination for aquaculture products, is expected to grow by 3% annually through population growth alone. Southern and Eastern Africa (in particular Ethiopia, Tanzania and Kenya) and West Africa (especially Nigeria) will see the largest increases in urban populations in the coming years, with an additional 560 million and 272 million people living in cities by 2050 in the two regions respectively.

(Gorman and Webber (2010)).

• Nigeria in particular is a potentially huge market for African exporters of low value fish, notably mackerel, but also other species.

• If overall consumption were to increase at the same rate as in the past ten years, Nigerians would require over 600,000 tonnes of additional fish to meet the growth in demand by 2017.

• SCOPE TO PROMOTE INTRA REGIONAL AND

CONTINENTAL TRADE

• African exporters may be able to tap into higher value demand in other African countries. South Africa, for instance, in 2008 imported most of its crustaceans from India, Thailand and China, while imports from Africa are comparatively minor and almost entirely in unprocessed form. Mozambique was the largest source, accounting for 9% of imported crustaceans. Madagascar, the second largest African exporter of crustaceans, contributed just 1% of South African imports, while exporting 86% to Spain.

• With EU fish stocks seriously depleted and rising demand, there is an expanding opportunity to fill the gap.

• Least-developed countries benefit from duty- and quota-free market access to the EU under the Everything but Arms Initiative which, at least for now, could give African LDCs an advantage over many of their Asian competitors

• The US, for instance, sourced most of the fisheries products from Canada, Asia (in particular China and Thailand) and South America, while African imports play a comparatively minor role.

• Similarly, Japan is only an important export destination for some African countries (notably Morocco, Mauritania and Tunisia).

• Other markets, such as China, are also expected to increase their higher value imports as incomes rise.

and

• In the US, many African countries can take advantage

of preferential market access under the Africa Growth and Opportunity Act which also covers a range of fisheries products, including certain products of sardines, tuna, herring, hake and mackerel

• Emerging markets may also offer promising destinations in the future. China in particular is expected to demand increasingly more fisheries products in the future, primarily as an input into its processing industry for export and domestic consumption. In the same context, Russia, Korea and Thailand are also becoming increasingly important importers. For now, Russian and Thai imports are mainly limited to low value fish. Russia imported over 1 million tonnes in 2008.

• Eco-labelled products may also provide export opportunities for African countries. In particular in higher value markets with environmentally conscious and aff luent consumers, demand for such products is growing.

• Some exporters could also explore opportunities for greater value addition. On the whole, African fisheries exports still undergo only limited processing.

eg all shrimp and prawns exported out of Mozambique are currently shipped uncooked, which restricts end market options.

• Mauritius provides an interesting example of

governmental policies aimed at attracting investments and strengthening integration into global supply chains. Since the early 2000s, the Mauritian Government has been promoting the Seafood Hub Mauritius as the “cornerstone for the Seafood and Fishing business in the Indian Ocean”. It has already attracted international investors from countries such as Spain, Malaysia, Japan, USA, Sri Lanka and France.

• Mauritius offers a generous fiscal environment to investors while the port and Freeport provide logistics services, infrastructure facilities and a dedicated government one-stop-shop service to ensure rapid import and export clearances. In the future, the government hopes that the Seafood hub will eventually create around 15,000 jobs and turn over around US$ 500 million.

INFOSA

Conclusion:

• With expected growth in global demand for fish products, African exporters could explore opportunities for expanding existing and targeting new markets, including through diversification of both export destinations and products.

• Greater integration into global fisheries supply chains could also provide additional market opportunities for African fisheries products.

• Case: oyster exports to Dubai/ Abu Dhabi

Government main support

Farmer 1

Local/Reg/Int Distribution

Network

Farmer 2

Industrial Group (DRIVER )

Packaging & Product

dev.

Farmer 3

Farmer 4

Feed

Factory (3 t /day)

Imports

Farmer 5

Farmer 6

INFOSA

adopted by COMESA adopted by SADC

Harmonised axle load limits

COMESA carrier licence and transit plates

Harmonised road transit charges

Customs Regional Bond Guarantee

The COMESA Customs Declaration

Third Party Motor Insurance (Yellow Card

ACIS - the Advance Cargo Information

System

ASYCUDA - the Automated System for

Customs Data

Inter-railway working agreement between

railway companies

Single customs declaration of goods

Harmonization of weight limits and

vehicle dimensions

of road transit charges

Legal framework for overload control

Adoption community scheme

SADC road design standards

Defining a regional trunk road network

SADC road signs and signals

SADC Driver Licensing - harmonizing the

training of drivers and delivering o

driving licensing

SADC region has adopted the concept of

Development Corridors and Spatial

Initiatives (SDI)

Outline

Satish Hanoomanjee

Lusaka workshop

July 2011

• Main drivers

• Other organisations

• Some success

stories

MAIN DRIVERS

• SADC

• COMESA

• NEPAD

• Others:

• INFOSA

• Botswana Trade Hub

• SARNISSA

• IOC , etc.

INFOSA

SADC INTRA REGIONAL TRADE IN IN FISH AND FISHERY PRODUCTS

14 countries Population 234 million GDP of US$ 737 billion (2005),

SADC is the richest region in Africa and South Africa is most important country in Africa economic terms. region’s gross national per capita US $ 3,152.

3 LDC countries.

MESURES ADOPTED BY SADC AND COMESA

• SADC protocol on

Fisheries

• SADC protocol on Trade

• COMESA Business council

• Tripartite Agreement SADC-COMESA-EAC

MESURES ADOPTED BY NEPAD • NEPAD has recognized transport and trade facilitation as a priority area in its infrastructure action plan.

• NEPAD Action Plan

• AfDB, European Union, USAID and Japan are providing support to RECs

• The RECs are being provided with funds to set up observatories of abnormal practices, pay for the services of transport and trade facilitation experts at their Secretariat, and to evaluate the status of transit corridors as well as to reconstruct some of these corridors.

NEPAD- Partnership for African Fisheries • Working groups including a Fish Trade working

Group lead by INFOSA

• Started work in early 2010

• Close collaboration with SADC & COMESA

• Looking at various aspects of trade issues and trade facilitation with focus on intra-regional trade.

Market Information Systems An

exciting MIS

Program

in Kenya

INFOSA

TRADE NEWS

INFOSA leads the Trade Working Group for the Partnership for African Fisheries, (an AU/NEPAD Programme)

Every small link is important! COMMERCIAL SUCCESS STORIES • Marine culture of red drum in Mauritius

• Lake harvest in Zimbabwe

• Oysters culture in Namibia

• Trout in Botswana/lesotho ?

• Multi million US project for eels culture in Madagascar & processing & marketing from Mauritius

• Cambedoo project

Thank

you

Vo

lum

e i

n

An example: Namibia

Trade strategy

• Good resources but few species

• Limited product range

• Limited markets

• Limited processing

• Limited money

What is wrong with Namibian

fisheries and aquaculture?

• Diminishing resources

• Old and inefficient fleet

• Tiny aquaculture production

• Mainly raw materials exports

• A one-market industry

• Lack of market orientation

• A complex trade environment

900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

Diminishing resources

Namibia’s catches and landings

Freshwater fish

Marine fish nei

Pelagic fish

Demersal fish

Molluscs

Crustaceans

Cephalopods

Aquatic plants

Aquatic mammals

Old and inefficient fleet

Tiny

aquaculture

production

A “one-market”

Importers Exported value 2004 Share in exports,

in US$

Spain 246,329

Italy 20,224

Netherlands 14,541

Germany 9,259

France 8,980

USA 8,369

Australia 6,851

Japan 6,729

Portugal 3,380

Malaysia 2,720

Others 8,192

Total 336,310

Raw materials

US$

pe

r

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

Export prices US$ per kg fob exporting country

4,0.00

3,50.00

3,0.00

2,50.00

2,0.00

1,50.00

1,0.00

World total

SADC

Namibia

,50.00

,0.00

Export products

and value addition

Commodity US$ 1000 % of total

Fresh or frozen whole 247,178 66%

Fillets 74,873 20%

Prepared, cured 4,197 1%

Canned 20,688 6%

Other 28,860 8%

TOTAL 375,796 100%

Lack of market orientation

The value chain

A complex trading environment • Globalization

• Import requirements

• Quality requirements

• Packaging and labeling requirements Production Processing Exports Distribution Consumer • Tariffs

Focus on the market!

If Nobody buys your product, then why produce it?

• Trade agreements

• Prices

• Documentation: the paper mill

Market options

• Europe (including the EU)

• Japan

Product options • Raw material producer

• Semi-processed products • USA

• East Europe

• Middle East

• Latin America

• Africa

• Southern Africa

We need detailed

information about

alternative

markets!

• Consumer pack products

• A mixture of the above

• NB: what matters is not the price of the

product, but the profit margin!

Sustainable resource base

• Responsible fisheries management

• Responsible fisheries

• Regenerate nursing grounds

• Stable landings at 500,000 – 600,000 tonnes?

Regenerating the ocean

Capture vs culture production Aquaculture potential

• What is the aquaculture potential?

• How can this potential be realized?

• What will it require?

– Capital

– Education

– Training

– Infrastructure

180000,0

160000,0

140000,0

120000,0

100000,0

80000,0

60000,0

40000,0

20000,0

,0

NAMIBIAN AQUACULTURE PRODUCTION: FORECAST

Freshwater crustaceans

Freshwater finfish

Crustaceans

Algae

Marine finfish

Abalone

Oysters

S. S. S.E.

Round frozen Frozen hake Fresh Fresh hake

Horse Fresh

Frozen

Africa’s top exporter?

Namibia’s market diversification Share of Namibian exports

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

2005 2010 2020

Middle East

Southern Africa

Latin America

USA

Japan

China

South East Asia

Other Europe

East Europe

EU

Product mix Share of total

Value addition

100

90

80

70

60

% 50

40

30

20

10

0

2005 2015 2025

Other

Prepared

Canned

Fillets

Whole

Strategy: Product/market matrix

Action plan • Market intelligence

• Network building

• Building a Namibian brand

• Establish an export promotion agency

Objective: What do we want Namibia to be in 2026?

• A sustainable resource base

• Among the 3 largest producers in Africa

• The largest exporter in Africa in terms of $

• A mix of wild-caught and farmed fish

• A mix of markets

• A mix of semi-processed and consumer pack

products

• Profitable companies all through the value chain

ZIMBABWE : COUNTRY STATUS

ON FISHERIES AND

AQUACULTURE (2011)

A Presentation by Mr Bothwell Makodza (Director in the Department of Livestock Production and Development)

In this presentation: 1. Background Information

2. Freshwater Aquaculture

3. Capture Fisheries

4. Extension Services

5. Stakeholder Cooperation

6. Previous Development Projects

7. Challenges

8. Recommendations for the future

Background Information • Zimbabwe is a land-locked country with a

population of 12.5 million people • There are no natural lakes in the country but there are more than 10,000 man-made reservoirs and dams. These have been built primarily for urban water supply, irrigation, water conservation and recreation, livestock watering and hydroelectric power generation. The sizes range from a few hectares to over 90 km2, with Kariba having a surface area of 5,580 square kilometres.

• The country is endowed with the most favourable bio-technical factors of fisheries and aquaculture production with annual temperatures averaging 20 degrees celcius

Background Information (Cont) • The country has an agriculture-based economy, with intensive and

diversified farming in the middle and highveld areas, and extensive livestock farming and ranching in the drier areas. More than 70% of the country’s population is dependent on agriculture.

• Fish production in Zimbabwe is based on aquaculture and capture fisheries. Production from these sources fluctuates annually, averaging 20,000 tons. The bulk of this production is made up of kapenta (limnothrissa miodon) from Kariba Dam (more than 80%). The rest comes from exploitation of fish resources from Zimbabwe’s dams, and from aquaculture.

• National potential demand for fish is almost 60,000 tons per year indicating a deficit in supply based on current production. The deficit has to be satisfied through imports. The estimated annual per capita fish consumption level is 1.2 kg, well below the SADC average of 6.7 kg.

Freshwater Aquaculture

• Zimbabwe is not traditionally a fish farming country, hence the sector has developed in a fairly modest way.

• Most fish farming in Zimbabwe is situated at two ends of the spectrum – either at a very small scale in communal areas, often for subsistence, or at a level of intensive capital investment suitable only for the commercial sector.

• Commercial ventures include trout farming in the Eastern Highlands and intensive tilapia farming on Lake Kariba (Lake Harvest Fish Farm exporting tilapia fillets to Europe).

Freshwater Aquaculture • For rural aquaculture, production is based on the use of feeds available on the farm and wastes from animals. This is a technology that can be practiced by most farmers and works best as an integrated system with horticulture production.

• The country is also endowed with vast underutilised wetlands and areas with high water tables that can be exploited for sustainable aquaculture production together with bio-diversity conservation.

• Trout production is confined to the high-altitude Eastern Highlands where temperatures are cooler and the water quality is good. The species cultured are Rainbow Trout (Oncorhynchus mykiss) and Brown Trout (Salmo trutta)

Capture Fisheries

• There is great potential for development of dam fisheries in the country to increase protein supply to rural communities and other low income earners.

• These water bodies can be sustainably utilised to provide fish for local consumption or sale. Fish production from dams averages 150 kilograms per hectare per year, depending on quality of water and productivity of the fish species present.

Capture Fisheries • The Government of Zimbabwe recognises the potential of these existing resources and has made efforts to develop it. Several donor-funded programmes have been implemented since the late eighties.

• Most fishermen exploiting communal or farm dams are part time fishermen and the rest of the time they are mostly farmers. Full time fishermen are found on very few big dams in the country, notably Lake Kariba , Chivero, Manyame, Mutirikwi and Mazvikadeyi Dams.

Capture Fisheries: Lake Kariba

• Industrial or Pelagic Fishery

• The major species of commercial importance on this fishery is kapenta. It is a capital-intensive fishery and is operated by big companies and some co- operatives using lift nets on rigs. One fishing rig can cost up to US $20,000. Fishing is done in the pelagic zone at night using powerful lamps.

• Companies operating this fishery have their own landing and processing facilities. The processing involves salting the fish then sun drying. Freezing is also done but at a lower scale.

Capture Fisheries: Lake Kariba • Artisanal or Inshore Fishery

•

• Full time fishermen are found on Lake Kariba.

There are at least 40 fishing villages in the five

basins along the shoreline . The fishermen use

gill nets.

• The fisher folk use mainly fibreglass and metal

boats.

• Less than 2% of these boats are motorized.

Capture Fisheries: Lake Kariba

• Sport and Leisure Fishery

• This form of fishery is based on angling. One of

the most important species in this fishery is the

tiger fish. There is an annual international tiger

fish tournament on the Lake, with participants

coming from all over the world.

Extension Services • The department of Livestock Production and Development provides extension and advisory services for both aquaculture and dam fisheries.

• For dam fisheries, the department undertakes Community Based Awareness programmes for locals living adjacent to the water bodies and encourages community based fisheries Management (CBFM).

• This is an arrangement where fishing communities decide how the resource is used and by whom with assistance from the government. Decision making arrangements are vested with the community.

• This way effective control of resource exploitation is achieved at reduced cost to the central government.

Previous t

1. (1988-1992)-

FAO Agriculture Capacity building of the

Fisheries extension Services

(1992-1994)

FAO Agriculture Drought recovery programme to restock dams

that had dried out under

severe drought of 1991/92

(1995-1998)

FAO Environme nt

Community-based fisheries management project

4. (1999-2001)

FARMES A

Agriculture Use of excess water in irrigation schemes for fish

farming

(2005-2007)

FAO Environme nt

Community-based fisheries management project

(2001-2004)

FAO Agriculture Integrating aquaculture into

irrigation schemes

Fish trade

• Fish products coming and leaving the country include ornamental fish, other live fish, various frozen marine and freshwater fishes (whole + processed)

• Zimbabwe imported fish and fish products worth $ 3.3 million (= 2500 tonnes) in 2009

• From 2000-2009 Zimbabwe exported fish products worth $44 million, including fish that are not harvested or produced locally

• It is evident that value-addition and secondary processing of fish products is an important activity for the economy

• Large tonnages of imported fish products are also directed for fish farming (fish meal) and crocodile farming (e.g. imports of mackerel)

• Zimbabwe exports to Europe, SADC countries, Middle East, Indian Ocean countries

Stakeholder Cooperation • In 2009, stakeholders launched a working group

for fisheries and aquaculture issues called the

Fisheries and Aquaculture Working Group

(FAWG).

• The FAWG is made up of relevant state

departments and institutions (DLPD,NPWMA,

DR&SS, DVS, UZ etc), NGOs (FAO, Aquaculture

Zimbabwe, DAPP, Fish Eagle Trust, etc),

Consultants and researchers.

Stakeholder Cooperation

• The major thrust of the FAWG is to chart a way

towards a national fisheries and aquaculture

strategy, action plan and other legal and policy

issues

• The grouping also prioritises data collection and

collation, technical skills development among a

host of other issues

• However constraints have emerged due to lack

of funding and state support.

Challenges

Several challenges exist that need to be recognized before strategies can be designed and implemented for more rapid development of the fisheries sector

• Lack of technical manpower and capacity of institutions involved with fisheries and aquaculture administration

• There is no reliable supply of good quality fish seed for aquaculture and dam fisheries

• There is no institutionalised credit and input supply services for fishermen and fish farmers

• Currently there is no fisheries and aquaculture policy and development plan

• Siltation of river systems and of water bodies due to poor farming practices in catchment areas

• Current changing climatic patterns and persistent droughts leading to desiccation of fish habitats

Recommendations for the future

• Fisheries and aquaculture roadmap, strategies and policies should be developed by stakeholders

• Refining dam management strategies and research development on alternative and sustainable harvesting methods.

• Incorporating a comprehensive fisheries curriculum in agricultural college syllabi

• Establishing fish breeding centres/hatcheries in areas of high potential for easier access by farmers at all levels.

5

Recommendations for the future

• A shift in donor approach to developmental interventions

that target fish (i.e. have to be done in the context of commercial fisheries Thank You!

and aquaculture activities from the micro-scale) – previous donor projects

failed mainly due to

their “hand-out” nature with no emphasis on the commercial side of fish.

SMARTFISH MEETING REPORTS List of Publications

Ref Description meeting

1 Regional Trade Strategy Development Workshop; 26th – 28th July 2011, Zambia

2 Dagaa Value-Chain Study Workshop; 25th – 26th August 2011, Tanzania

3 Implementation of EAC SPS measures and procedures VOL III workshop; 31st August – 2nd Sep-tember 2011, Tanzania

4 Laws, MCS capacity and fisheries governance consultations; 27th – 30th September 2011, Mauritius

5 Development of MCS Action for Lake Victoria Held; 5-7 october 2011, Uganda

6 MCS training module development workshop, 10th – 14th October 2011, Kenya

7 Regional fish trade strategy development workshop; 17th – 19th October 2011, Uganda

8 Indian Ocean tuna operators association meeting on Eco certification; 21st – 22nd October 2011, Mauritius

9 MCS operational training workshop to combat IUU in lake Victoria ; 24th November–1st December 2011, Tanzania

10 Meeting to finalize updating of the EAC SPS VOL III; 5th – 7th December 2011, Tanzania

11 EU grant application workshop for joint fisheries surveillance ; 5th to 9th december 2011Tanzania

12 EU grant application for joint fisheries patrol workshop ; 14th – 15th December 2011, Mauritius

13 Tanzania joint committee meeting for grant application for joint fisheries surveillance ; 9th – 11th January 2012, Tanzania

14 Regional meeting to prepare a popular version of Dagaa processing and marketing manual ; 17th – 20th January 2012, Zambia

15 Atelier de formation sur la gouvernance des pêches maritimes dans la région AOA-OI ; 31st ja-nuary–2nd february 2012, Madagascar

16 Experts meeting to update and improve EAC SPS VOL III fish and fisheries ; 6th to 10th February 2012,

17 Experts meeting to update and improve EAC SPS VOL III fish and fisheries ; 6th to 10th February 2012,

18 Developing and Managing Small-Scale Freshwater Aqua-Businesses in Zimbabwe, 20 – 24th Febru-ary 2012

19 Joint operational workshop ; February 2012, Uganda

20 Atelier de formation sur la gouvernance des pêches maritimes ; Avril 2012, Djibouti

21 Quality & hygiene training of trainers and border inspectors training ; 9th – 23th April 2012, Uganda and Zambia

21 Quality & hygiene training of trainers and border inspectors training ; 9th – 23th April 2012, Uganda and Zambia

22 Rwanda TOT in fish handling, hygiene and processing; February and April 2012

23 Appui dans l’amélioration du cadre de gouvernance pour une gestion durable et responsable des pêches maritimes ; 24 – 26 Avril 2012, Madagascar

24 Regional Workshop on MPAs as a potential management tool for sustainable fisheries in the South-west Indian Ocean ; 11-13 June 2012 Mauritius

25 Training workshop on governance in marine fisheries in the ESA-IO region ; 11th – 14th June 2012, Kenya

26 Report on the training workshop for senior managers ; 5-7 June 2012 Mombasa

27 Workshop on grant application for joint fisheries patrol ; 10th - 11th April 2012, Burundi

28 Coordination meeting for IOTC session and committee meetings 14th April 2012, Mauritius

29 SmartFish trade event report ; 26th – 27th April 2012, Zambia

30 Developing and Managing Small-Scale Freshwater Aqua-Businesses; 5 – 9th March 2012 Zambia

31 Joint operational training feedback report: 07 - 25 may 2012, kenya

32 Mission and trip report to Entebbe ; 12 – 16 February 2012, Uganda

33 National working group for regional trade strategy development 1 ; 18th-21th March 2012, Zimba-bwe

34 Burundi TOT in fish handling, hygiene and processing ; February and March 2012, Burundi

35 Working group for the development of a national strategy for regional fish trade ; 17th – 18th April 2012, Uganda

36 Working group for the development of a national strategy for regional fish trade ; 24th – 25th April 2012, Malawi

37 First working group meeting on developing a national strategy for regional trade ; 02 – 03 May 2012, Mauritius

38 First working group meeting on developing a national strategy for regional trade; 08th – 9th May 2012, Zambia

39 TOT in fish handling, quality and processing-implementation of the training . July 2012, Democratic Republic of the Congo

40 National working group for regional trade strategy development ; 4th – 5th June 2012, Zimbabwe

41 Training for fish quality improvement: training of trainers ; June 2012, Zambia and Zimbabwe

42 Third meeting of the working group for the development of a national strategy for regional fish trade ; 12th – 13th June 2012, Uganda

43 Regional Working Group for Developing Border Inspectors' Guide, 11th - 15th June 2012, Kenya

44 Regional training course in the investigation and prosecution ; 11th – 22th June 2012, Tanzania

45 Community based MCS – anti blast fishing training . 25th June – 5th July 2012, Tanzania

46 U.N. agreement on port state measures to prevent, deter and eliminate illegal, unreported and unreg-ulated fishing . 16th – 20th July 2012, Tanzania

47 CCAMLR workshop on illegal, unreported and unregulated fishing . July 2012, South Africa

48 Joint operational training feedback report: 07 - 23 august 2012, Tanzania

49 Second working group meeting on developing a national strategy for regional trade ; 21th – 22th June 2012, Zambia

50 Training for fish quality improvement: training of trainers workshop ; July 2012, Tanzania

51 Joint operational training feedback report ; 18th June – 06th July 2012, Uganda

52 MCS training ; 9th – 27th July 2012, Tanzania

La bonne gouvernance et la bonne gestion des pêches et de l'aquaculture permettent d'améliorer la contribution du secteur à la sécurité alimentaire, au développement social, à la croissance économique et au commerce régional ; ceci en assurant par ailleurs une protection renforcée des ressources halieutiques et de leurs écosystèmes.

La Commission de l'Océan Indien (COI) ainsi que la COMESA (Common Market for Eastern and Southern Africa), l'EAC (East African Community) et l'IGAD (Inter-Governmental Authority on Development) ont développé des stratégies à cette fin et se sont engagés à promouvoir la pêche et l'aquaculture responsable.

SmartFish supporte la mise en œuvre de ces stratégies régionales en mettant l'accent sur le renforcement des capacités et des interventions connexes visant à :

• la mise en œuvre d’un développement et d’une gestion durables des pêcheries ;

• le lancement d’un cadre de gouvernance pour les pêcheries durables dans la région;

• le développement d’un suivi-contrôle-surveillance efficace pour les ressources halieutiques transfrontalières ;

• le développement de stratégies commerciales régionales et la mise en œuvre d’initiatives commerciales;

• l’amélioration de la sécurité alimentaire à travers la réduction des pertes post-capture et la diversification.

SmartFish est financé par l'Union Européenne dans le cadre du 10ème Fond Européen de Développement.

SmartFish est mis en œuvre par la COI en partenariat avec la COMESA, l'EAC et l'IGAD et en collaboration avec la SADC. Une collaboration étroite a également été développée avec les organisations régionales de pêche de la région. L'assistance technique est fournie par la FAO et le consortium Agrotec SpA.

By improving the governance and management of our fisheries and aquaculture development, we can also improve food security, social benefits, regional trade and increase economic growth, while also ensuring that we protect our fisheries resources and their ecosystems.

The Indian Ocean Commission (IOC), the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Inter-Governmental Authority on Development (IGAD) have developed strategies to that effect and committed to regional approaches to the promotion of responsible fisheries and aquaculture.

SmartFish is supporting the implementation of these regional fisheries strategies, through capacity building and related interventions aimed specifically at:

• implementing sustainable regional fisheries management and development;

• initiating a governance framework for sustainable regional fisheries;

• developing effective monitoring, control and surveillance for trans boundary fisheries resources;

• developing regional trade strategies and implementing regional trade initiatives;

• contributing to food security through the reduction of post-harvest losses and diversification.

SmartFish is financed by the European Union under the 10th European Development Fund.

SmartFish is implemented by the IOC in partnership with the COMESA, EAC, and IGAD and in collaboration with SADC. An effective collaboration with all relevant regional fisheries organisations has also been established. Technical support is provided by Food and Agriculture Organization (FAO) and the Agrotec SpA consortium.

Contact:

Indian Ocean Commission-SmartFish Programme

5th floor, Blue Tower – P.O. Box 7, Ebène, Mauritius

Tel: (+230) 402 6100

Fax: (+230) 406 7933

regional trade strategy development workshop

Documents