SUSTAINABLE FISHERIES DEVELOPMENT GHANA

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1 SUSTAINABLE FISHERIES DEVELOPMENT GHANA GENERAL INFORMATION Purpose Establishment of a commercial and sustainable supply chain of fresh tuna loins to the EU market Country Ghana Sector Agriculture Contribution to MDG #1 (poverty alleviation among the fishing community) #7 (environmental sustainability) Time June PARTNERSHIP BACKGROUND AND OBJECTIVE Ghana is one of the countries where fishing is a significant economic activity. 71% of the total catch is caught artisanally. Many women are involved in post-harvest activities such as processing and marketing of fish. In general, the artisanal fishing industry in West Africa suffers from lack of organisation, lack of capacity to interact with governments, lack of financial and technical infrastructure and lack of knowledge with which to compete with foreign fleets. At the same time, a market opportunity exists, which can help to transform the artisanal fishers industry and to equip it for long-term sustainability. In order to establish a commercial supply chain for fresh tuna (and tuna like species) loins that enhances the livelihood of poor artisanal fishing communities, over 10 partners (including two Ghanaian associations of traditional fishermen, Ghanaian, Netherlands and Philippines fish entrepreneurs, the Ghanaian Ministry of Fisheries, GRATIS Foundation, a commercial shipyard, Royal Tropical Institute and Netherlands Ministry of Foreign Affairs/Netherlands Embassy) developed a public-private partnership. The PPP sustainable fisheries in Ghana aims to strengthen the local fishery industry, thus alleviating the poverty of the costal communities. The PPP involves four components: (i) Development of a pilot sustainable value-chain of deep-sea line fishing, pre-processing and marketing of tuna and tuna-like species for the international market by establishment of a commercial company (Phineghan Fishing Ventures Ltd. (PFV)). (ii) Development of the value-chain of design, construction and marketing of fibre glass fishing boats through the establishment of a commercial company (Fine Boat Marine Ltd.). (iii) Provision of services to the value chain operators including: a. Arrangement of credit/financing services to the fishermen associations to allow them to participate in the fishing value chain; b. Training and skills development for the various value chain operators (fishing techniques, boat-building and maintenance, management and administration). (iv) policy development; enabling environment to enhance sustainable fishery practices. It is foreseen that at the end of the project in 2009 a market-based model will be in place with the potential to foster and to increase the economic, environmental and social sustainability of the wider artisanal fishing industry in Ghana. By that time it is aimed that Ghana has entered the European market with a Marine Stewardship Council certified artisanal product and a sustainable trading chain will be operating between the artisanal fishers and the market parties in the Netherlands who are among the collaborators in this program. The program will also strengthen South-North-South cooperation for sustainable development, initially involving Philippine artisanal fishing experts and then transferring the lessons learned within the West African fishing community.

2 PPP Timescale Assessment and Consultation 2005/2006 Design Phase (ended April 06) MoU signed in June 06 Inception Phase (ended Dec. 06) Implementation phase March 07- March 09 Monitoring (Juni 07-Juli 08) DGIS funding ends March 09 Partnership Exploration Partnership Building Partnership Maintaining Partnership Phase-out PARTNERS INVOLVED The overall partnership has a large number of parties each with their own particular interest in participating. The program is split into sub-projects (fishing chain development; boat building development). The over-all project co-ordination is done by Rainbow Fish Consultants; KIT acts as co-assistant. The total PPP budget amounts with a contribution from DGIS of Partner Partner background and motivation Role and contribution to project Overall PPP project RFC is a consultant investor with experience in private sector developments in the fishing industry and fishing marketing in the Philippines and Ghana and other countries. Rainbow Fish Consultants (RFC) Project management and co-ordination responsible for the various financial and economical aspects, marketing and management and the set up of a proper reporting system Contribution to overall project budget in cash and services. Ghanaian Ministry of Fisheries Royal Tropical Institute (KIT) Government support to the fishery sector is a necessary ingredient towards its sustainable development. The Ministry of Fisheries positions itself as an essential stakeholder rather than a partner. KIT is a multidisciplinary organisation concerned with the issues of international development. KIT is engaged in consulting assignments, advisory services and project implementation on behalf of multilateral and bilateral funding agencies and their local counterparts. KIT has the possibility to Non-investing partner Provision of necessary port infrastructure Ensure a proper and sustainable development of this industry through legislation and policy development Brokerage services to the project during the initial phases. Institutional development of the fishermen s associations Improvement of education system for sustainable fishery. Assistance in the development of credit facilities

3 PPP Facilitator Mr. Noble Kumawu (SNV) DGIS/RNV participate as a minor investor in development projects Independent consultant contracted through SNV DGIS and the Royal Netherlands Embassy are primarily the main funding partner. They act as an intermediary between the partners and the Ghanaian government. Fishing chain development Inter-Seas Inter-Seas Fisheries is a presently not Fisheries operational fishing company that has been involved in the tuna fishing for several years in Ghana Contribution to overall budget in services (approx ) Brokerage services to the project especially aimed at enforcing the participation of the fisherman associations. Facilitator (co-organisation of the stakeholders meetings) Financial contribution: (including for a local PPP facilitator) Day-to-day management of the fishing joint venture Investing approx in cash and services RFC See above Shareholding partner in PFV Ltd. Investing approx cash and services GIFA & GNCFC Mr. G. Armah Dutch Fish Importers: DaySeaDay (Urk) and Van Wijk Vishandel (Scheveningen) Frabelle Fishing Corp. Manila Bureau of Fisheries, Philippines Regional Marine These associations of fishermen represent the smaller inshore fishermen and the canoe fishermen respectively Private investor with background in fisheries sector based in the UK Fishing processing and distribution companies. Daily shipments of fish to most countries of the EU. Aim is to secure a constant supply of top quality fish. Largest fishing corporation of the Philippines. Has gained experience in a similar project in Papua New Guinea. Government service with experience in sustainable tuna fishing in Philippines Training Centre for fishermen and sailors (proposed) Shareholding partners in PFV Ltd. Members employed and trained by PFV Ltd. As fishermen on PFV fleet. Members may become boat-owners fishing for own account and exporting via PFV ltd. In future Investing approx in cash based on guaranteed loan. Shareholding partner in PFV Ltd. Investing approx in cash Provide technical assistance with regard to the processing, packing and transport of the tuna to Europe Investments: together approx in cash Was to be responsible for transport of the fishing boats to Ghana and the co-ordination of the training of Ghanaian fishermen HAS WITHDRAWN Provision of training to Ghanaian fishermen Provision of training to Ghanaian fishermen University Boat building development RFC See above Shareholding partner in FBM Ltd. Gratis Foundation Dolphin Shipping Gratis Foundation a parastatal company - provides technical assistance and training to small and medium enterprises and has 9 training centres in Ghana. Dolphin Shipping Services provides services to shipping and fishing sector in Tema Port Investing approx cash and services Recruit key technical/administrative personnel Prepare shipyard site and provide local management Assess and provide training for the Fishing associations Investing approx in assets Management support to the FBM Ltd. Investing approx in cash and services

4 Services Ltd. DaySeaDay& Van Wijk Vishandel Stonework, Manila Fishing processing and distribution companies. Daily shipments of fish to most countries of the EU. Stoneworks Fiberglass Division has shipyards in many cities. They supply the tuna fishing industry with a large number of different types of boats. Investments: together approx in cash Delivering boats for the tuna fishing Provide technical assistance and training with regard to the shipyard project Investing approx in cash and services

5 ACTIVITIES AND RESULTS The results of the PPP in relation to the objectives are: 1. Economic Development Activities Results Status February 2008 Establishment of a fishing value chain Development and local manufacturing of glass fibre vessels (allow artisanal fisherman access to richer deep sea fishing grounds) Development of a business model and set up of a credit facility 2. Social Development Activities Offering trainings and workshops for fishermen associations Transfer of knowledge and organizational skills in fishing schools New company Phineghan Tuna Ltd is registered and established Ghanaian fishermen have better access to the EU export market Effective marketing of tuna and other fish is in place Commercial building of trawlers, canoes and other fishing boats in progress Ghanaian fishermen are trained in the production of glass fibre vessels Increased income of participating fishermen Creation of jobs in the marketing and processing chain Access for fisherman to institutional credit to finance glass fibre vessles is enabled. Results Restructured and more effective fishermen associations Future fishermen are equipped with knowledge on hygiene, aquaculture, and natural resource management. Improved knowledge on economics and accounting enable The Phineghan Fishing Ventures Ltd has been registered (May 2007) and shareholding has been decided. A skeleton staff has been employed. The 5 Fishermen employed as skippers have received a 1 month training in the Philippines (August 2007). The Fine Boat Marine Ltd company has been registered and shareholding has been decided (May 07) The site to be provided by Ghana is awaiting development Equipment and materials to start boat-building to be imported from the Philippines are awaiting shipment. Credit provision to fishermen has been explored. Credit provision to (groups) of fishermen for investing in fibreglass boats by existing credit schemes appears feasible. In February 2007, PriceWaterHouseCoopers, contracted by DGIS, prepared a preliminary assessment of the assistance needed by the fishermen s associations to develop their management and administrative capacities.

6 Additional workshops on processing methods (focus on women groups) 3. Ecological Sustainability Activities Further development and enforcement of regulations that promote sustainable fisheries fisherman to run their fishing enterprise in a financially sound and effective way. Capacity is build up in effective local processing and smoking of the fish Results Marine protected areas are established resulting in increase in fish stocks, recovering of fish population. effective quality control system is set up by the Government of Ghana, resulting in the MSC brand (by 2009) No changes in policies or enforcement of fisheries regulations are so far apparent.

7 INPUT Goals, motives and resources of individual partners Stakeholders see the PPP as an opportunity to revitalize the subsector of artisanal fisheries which was in distress before the project started. Commercial opportunities are the drivers for the private sector actors involved. The public sector actors aim to stimulate poverty alleviation through access for artisanal fishermen to rich fishing grounds, income increase and more employment in processing industry. Civil society actors support the contribution to realizing development goals by providing capacity building. Strong emphasizes on direct involvement of fishermen associations in the joint venture companies as a pilot model for development of sustainable fishing. THROUGHPUT Partnership characteristics, dynamism and design. The interactions between the partners and stakeholders are taking place at two levels: the overall partnership level, and the level of establishment and management of the joint venture companies (project). Double role of consultant charged with the overall coordination of the PPP and private investors could create a conflict of interest and might lead to priority given to the private sector aspects of the project. In order to mitigate this risk a Steering Committee was (delayed) established. The need for an independent local PPP facilitator arose who monitors the activities by the various partners and manages conflicts. Delays and problems due to lack of management and administrative capacity. OUTPUT Partnership objectives, sustainability and deliverables Little tangible results have so far been achieved. Operation started in March 2007 and due to uncertainties and delays partnership building is still the main issue. Implementation of the project components (the development of the fishing operations and the boatyard respectively) has met with serious delays. Mayor changes in the implementation plan of the investment in the fishing operations will half capacity and income for the fishing operations. Capacity building amongst the partners has been a serious point of attention from the onset of the PPP development. Still structural problems in organizational capacity development. The PPP project has so far not led to institutional changes or policy changes OUTCOME Impact: direct and indirect contribution of partnership to MDGs. A contribution of the activities to the MDGs is so far not measurable since actual fishing operations nor boat building has started. Interaction between partners during the partnership development so far can be considered to have strengthened the position of the small fishermen community and with it their potential to improve their economic position (MDG #1). Also the process will have contributed to increased awareness regarding the need and possibilities for sustainable development of fisheries (MDG #7). All direct partners are still convinced that the partnership will lead to the desired impact on the fisheries sector in Ghana. Aim is to upgrade processing and production of the tuna value chain. Also new functions shall be acquired in the chain to increase overall skill content of the activities. EFFICIENCY Costs-Benefit: Critical success factors and lessons learned during process. The PPP partnering process of this project has been generally slow, cumbersome and relatively costly process due to: o A lack of clear criteria and clarity about the partnership procedure/process o Lack of project management and coordination capacity o remote project management based in the Netherlands o Absence of locally based broker in the initial phases o Lengthy negotiation processes due to private and public interests o Lack of direct involvement of the Royal Netherland Embassy in monitoring the progress of partnering. Lessons learned: Clear criteria for the PPP (desired development objectives; expected contribution of the private partners; eligibility criteria such as management and administrative capacity, track record in partnering with organizations from other sectors, proven financial capacity) Presence of donor and independent brokerage both on local level is required EFFECTIVENESS Added value: of partnership to the participants and to the MDGs The partnership can be seen as useful and necessary to reach the objective of development of sustainable fishing by the small scale fisheries sector. The establishment of a fishering company using the same techniques but without a direct linkage to the fishing associations would not have had the same potential. Also the participation of the public sector (esp. the local public sector) is seen as essential, although changes in policy and enforcement have so far not been effected. The linkage of the two rather innovative and experimental components of the project in one partnership carries the strong risk that delays or failures in the implementation of one component will lead to the failure of the other. The program collaborates actively with the Royal Netherlands Embassy to ensure its embedding in the Netherlands bilateral development assistance program and to generate synergy with other Dutch funded activities. It was planned to collaborate closely with the Sustainable Fisheries Livelihood Program, a joint initiative of FAO and DFID (?)

8 Public Partner: DGIS RNE Ghanaian Ministry of Fisheries Gratis Foundation Financing and Supervision Private Partners: RFC Inter-Sea Fisheries Fishermen Associations Privat Investors Dutch Importers Implementation Civil Partner: KIT

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