What may be Crucial for Succeeding with Tilapia Farming in Africa? Presentation -> for whom? Private Sector, NGOs or Government Programmes?

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Transcription:

What may be Crucial for Succeeding with Tilapia Farming in Africa? Presentation -> for whom? Private Sector, NGOs or Government Programmes? This meeting: Private Sector: 8 including speakers Public Sector: 51 including speakers

Often over-regulated WHY invest in Africa? Africa is not one - it is huge. Consisting of 55 countries and the continent is everything but homogeneous! and Relevant questions: under-enforced Market? Species? Rules and regulations? Licences and collaterals? Fast Growing Bureaucracy and Corruption? Investors comfort? Imports and working permits? Incentives? Financing? WC requirements are high! Insurance of installations and biomass? Infrastructure and reliability of such Economies Choice of technology and methods Production batches/size vs market absorption and logistics Labour cost (less important than hands-on skills) Promotion of Fish

WHY invest in Africa? General observations Some Pros: Some Cons: Relatively fast economic growth over the last decade Often poor regulations or over-regulated Lack of enforcement Fast growing population Low consumption of fish Governments encourage increased consumption of fish for health benefits Aid communities supports aquaculture Lack of proven concepts that may attract Investments/Financing Under dimensioned and sometimes not existing infrastructure Scattered markers and probably individually price sensitive Raw material cost in Africa much higher than world market commodity prices Import often subject to duties and hassle

IMPORTANT YOU NEED A PROOF OF CONCEPT FROM AFRICA AFRICA IS NOT THE PLACE TO EXPERIMENT So - IF IT DOESN T WORK ELSEWHERE FORGET AFRICA CHEAP LABOUR DOESN T WEIGH UP FOR LACK OF SKILLS CONSTRUCTION COST IN AFRICA IS ALMOST ALWAYS HIGHER THAN IN EUROPE

What is the real aquaculture story in Africa? (again generalized) Statistic material is weak. Many NGOs, idealists and aid organizations are involved in aquaculture without having the skills, knowledge or experience necessary to create a self propelling profitable industry. This has a negative effect on the development! Fish farms must be profitable. Regardless of method farmers must invest in their operations. Fish farming is not part time! The following slides are based on subjective observations rather than solid verifiable data:

Africa s poor have largely benefited from small scale aquaculture projects Using Mozambique as an example the average production per cubic meter of water is appr. 100gr. It is a huge potential for aquaculture using Norwegian cage technology in African Lakes and along the cost Perhaps, but what species justify such investments. Markets may only absorbed small volumes and infrastructure is almost not existing. Cost level not justifying export. African countries have to produce their own feed and not import feed or broodstock. Hence, R&D and development programs are needed Most major fishfarming nation import feed or feed ingredients. Fishfarming on wild broodstock is probably not profitable

Higher education programs in developing countries has largely benefitted private sector. More than 90% of those received aid sponsored higher education are working in public sector. Public institutions are important to create a platform for aquaculture development. Yes, to a certain extent but public sector institutions are swelling like cancer and do not reflect the size of the private sector. Africans returning from abroad with higher education are activity participating in promoting and building a private sector Most Africans with a degree do not want to carry out practical work. They are entitled to an office, a car, a house and staff. Best place to be is public sector or NGO There is a lot of cheap labour in Africa Yes, mostly unskilled. Industrial scale fishfarming need few but skilled labour.

PhD/MSc PhD/MSc > 90% employed in the public sector Engineers and skilled technicians Skilled workers Engineers and skilled technicians Skill ed wor kers Working for aid orgs and NGO s

Development aid has been successful in developing strong relevant institutions. Even if the regulatory framework is in place the bureaucracy is hard to penetrate. The same institutions are often the cause of corruption. Lack of enforcement Organizations are helpful in developing private sector and are creating an enabling platform for investments. Provides relevant technical assistance on the ground. Many organizations are over-dimensioned and struggles to survive. Underlying industry are not even remotely big enough to justify the size of the organizations. Corruption, red tape and aid projects are some of the alternative ways to finance their operations. Staff do not have relevant experience!

Risk Critical input: The main question is: How to reduce farmers risk and increase profitability? - Genetic material and fingerling quality - Feed quality and feeding protocols - Management and fish health support - Capital and Working Capital Small scale unprofessional. Big risk low monthly revenues Hatchery Nursery Grow-out Whole sale Processing Retail Time

Mozambique Initiative: 150 Km2 50% of Mjøsa

Terra Morta Creating a National hub with the capacity to produce 75 100 000 tons of tilapia without Total Irrigated area 35 500 Ha 6 000 Ha allocated for Tilapia farming going into intensive farming. 50-100 times existing production taking place in 9 000 ponds Nation wide!

Now What? Only Private Sector or professionally operated projects will develop sustainable aquaculture in Africa! Regulation and enforcement is needed (realistic and appropriate) Fish farming is risky Financing is tricky No licences that can be collateralized No insurance No credit lines for working capital Inferior fingerlings, feed and management increases risk and growth periods income per month decreases harder to make fishfarming a primary activity Only full time professional farming will succeed regardless of size of operations!

Thank you for your attention