Coastal and inland fisheries: old challenges and new opportunities Sloans Chimatiro Senior Fisheries Advisor, NEPAD Agency, Johannesburg, South Africa Presented at the Hotel Victoria, Pointe aux Piments, Mauritius, 23 April 2012
Outline of the presentation1. Features of the Small Island States2. Vulnerability of Small Island States3. Importance of fisheries in SIDS4. How can SIDS optimise the wealth- generating potential of fisheries?5. Lessons from best practices6. Conclusion
Key Features of Small Island Developing States1. The United Nations currently classifies 52 countries and territories as Small Island Developing States (SIDS)2. Forty-three of SIDS are found in the Caribbean and the Pacific regions.3. SIDS are a diverse group of countries with ≥ 50 million inhabitants4. The group comprises countries that are relatively rich and those that relatively poor5. SIDS are extremely dependent on the sea and its living marine resources for their existence.
Small Island States :Vulnerability1. small size;2. remoteness;3. vulnerability to external (demand and supply-side) shocks;4. narrow resource base; and5. exposure to global environmental challenges (sea level rise, destruction of coral reefs critical to food security and tourism)6. waste pollution and acidification of the oceans and resultant loss of biodiversity
Small Island States :Vulnerability to climate change1. Many people in SIDS live in the low elevation coastal zone (LECZ) (coast area of ≤ 10 metres above sea level).2. LECZ are vulnerable to sea-level rise, storm surges, floods and other climate change-induced hazards.3. Overall impact of climate change is being felt via: water resources availability, agriculture and food security, and the protection of coastal zones4. Destruction of coral reefs critical to food security and tourism)
Small Island States :Vulnerability to trade imbalances1. SIDS are economically vulnerable due to their remoteness and smallness (resulting in logistical costs)2. Susceptibility to natural disasters, & fragile ecology,3. Limited institutional capacity (in part due to limited critical mass),4. Limited ability to diversify,5. Strong dependence on a narrow range of exports, and high import content (especially strategic items with volatile prices: food and fuel)6. Rapid rise in their debt burden (due to the lack of economies of scale, high transport costs, low trade capacities and increasing trade deficits)7. More recently, decreasing workers’ remittances (due to global economic downturn)8. SIDS are disadvantaged in the negotiation of bilateral agreements because they lacked a collective bargaining position as well as information on the market value of their (fish) resource
International Logistics Performance Index (LPI): Comparison with some of the SIDS LP I Ra nk C o u ntry LPI 28 S o u t h A f r ic a 3 .4 6 58 S e ne g a l 2 .8 6 S a o To m e & 2 .8 6 ( 2 0 0 7 ) 66 P r ia n dpae Ug nc i 2 .8 2 78 B a ha ma s 2 .7 5 12 0 C omoros 2 .4 5 13 5 S o lo m o n 2 .3 1 14 4 I si jl i n d s F a 2 .2 4 14 9 G u in e a 2 . 10 Source: World Bank 2010s a u B is LPI compares transport costs, quality of infrastructure (e.g., roads, ports, etc), tracking and tracing of consignments, and timeliness of delivery;
Importance of fisheries to SIDSAccording to the UN –Department of Economic & Social Affairs (2010):2. In some SIDS fisheries account for ≥ 50% of exports (UN 2010)3. Subsistence fishing supplies 50-90% of animal protein diet of people in rural areas and remote islands4. In Pacific tuna fisheries contributes ≥10% of GDP
SIDS and the Extent of their EEZ EEZ of African ISDSEEZ of Caribbean ISDS
Country and Size of EEZCountry Population EEZ (km2)Cape Verde 240,000 800,561km2Comoros 794,683 163,752km2Madagascar 21.9 million 1,198,722km2Mauritius 1,303,717 1.9million km2Seychelles 87,463 1,374,000 km²Sao Tome & 200,000 165,364 km2Principe
Country and Fish production/Consumption C o u ntr F is h Expo Per F i s h /A n i y P ro d u c ti rts c a p it a ma l o n ( to ns ) ( to ns s u p p ly P r o t e in C ape 18 , 3 2 8 14,524 ) 11.6 (kg) 11.7 (%) Ve rd e C omor 16,000 0 19.8 56.3 o sa d a g M 15 9 , 0 3 5 44,776 7.4 19.6 asc ar M a u r i t i 8,476 132,554 22.8 18.4 ue S s yc h 66,239 63,471 61.0 40.6 e lo S la e s 4,150 6 26.5 49.3 To m e & Yearbook (2009) FAO P r in c i pe
Challenges of fisheries in the SIDS1. Fish as an export commodity exerts pressure on the resources with potential of overfishing2. Knowledge of the level of stocks might be lacking resulting in poor management plans3. Poor knowledge of economic underpinning of the fisheries resources results in rent dissipation4. Poor governance mechanism which is manifested in Illegal, Unreported and Unregulated (IUU) Fishing5. Unfavourable trade mechanisms which leads to loss of value and wealth6. Wealth loss through Foreign Fishing Agreements (FFA), (assess agreements are provided for under UNCLOS)
Impact of governance structure on IUU Fishing Country Catch value Average IUU as IUU value calculated from Governance proportion of US$ FAO Score# estimated million statistics (2003) total US$ million catch These figures are from country case studies Namibia 532 0.347 0.0% 0 Mozambique 215 -0.393 15.0% 38 Kenya 15 -0.735 20.0% 4 Seychelles 137 -0.148 5.2% 8 These figures are extrapolated using the case studies above (one parameter model) Morocco 734 -0.189 7.5% 59 Mauritania 193 -0.209 8.1% 17 Senegal 423 -0.176 7.1% 32 Cape Verde 11 0.353 0.0% 0 Guinea-Bissau 13 -0.872 29.1% 5 Cameroon 37 -0.868 28.9% 15 Equatorial Guinea 2 -1.148 37.8% 1 Sao Tome & Principe 4 -0.323 11.7% 0 South Africa 626 0.431 0.0% 0 Madagascar 247 -0.121 5.3% 14 Comoros 22 -0.827 27.6% 8 Tanzania 91 -0.451 15.7% 17 Eritrea 13 -0.977 32.4% 6 Mauritius 18 0.659 0.0% 0 Source: MGRA.2005.
Wealth-loss in the value chainFig 1. Share of value of Nile Perch from Tanzania
Wealth loss in the value chain Fig 2. Share of value of Moroccan anchovy sold in Italy
How are SIDS losing potential wealth of their fisheries Resources? 1. In general, according to an EU study (IFREMER 1999), Financial payments (compensation) for Fisheries Access Agreements to developing countries ranges between 2 and 17% (average 2.6%) of the catch value 2. MRAG (2012) estimate that the EU is paying between 11–13% of the market value of tuna;. 3. In comparison, Japan and Korea pay approximately 6% of the market value of their tuna catch under agreements in the Pacific Ocean (MRAG 2012). 4. The US pays approximately 22% of the catch value (Mwikya 2006). 5. Compared with other natural resources such as minerals, forestry and crude oil (usually 30%) and also bearing in mind that investment in fishing is much less compared to mining
300 1400Total Community & shipowner Average world price (€/tonne) contribution (€/tonne) 250 1200 1000 200 800 150 600 100 400 50 200 0 0 88 90 94 96 00 02 84 86 92 98 04 06 19 19 19 19 20 20 19 19 19 19 20 20 Total Community and shipowner contributions (€/tonne) Average world price for whole frozen skipjack and yellowfin (€/tonne) Figure 3 Comparison of the total community and ship owner contribution for tuna (€/tonne) with the world market price for whole tuna (skipjack and yellow fin) (€/tonne) (Source (MRAG 2012)
Why are Fisheries Resources “Wealth”?– What do we mean by wealth? In economic terms, wealth is the value of assets owned by a person or community.– Africa’s fish resources represent renewable natural capital capable of generating substantial amounts of wealth over time and into the future– Therefore, well-managed fisheries can produce significant economic returns – resource rent (surplus value or profitability) and be part of a portfolio of wealth-producing assets, and contribute to economic growth and welfare
Wealth Generation Potential of African FisheriesInitial economic valuation undertaken by the NEPAD Agency andendorsed by the Conference of African Ministers of Fisheries &Aquaculture (CAMFA) is as follows:–Africa’s fisheries as a whole has the first sale value of about US$ 4,861million per year–Well-managed fisheries can produce annual resource rents(Profitability) between 30% and 70% of the first sale value.–Our estimate used a conservative rule of thumb of 40% of turnover,to give potential annual fish resource rent generation for Africa isabout US $2 billion.–However, capitalising this annual value at a discount rate of 9% givesan estimate of the wealth value of US$22 billion.
Fisheries Opportunities for SIDS– Demand for fish is rising globally, including Africa (rising middle-class)– The fisheries constraints of SIDS were first recognized by the 15th Session of COFI in 1983 (Special Problems of the SIDS in the Management and Development of Fisheries under the New Regime of the Oceans)– The special case of SIDS within the context of sustainable development was first formally recognized by the UN (UNCED) in Rio de Janeiro in 1992.– More awareness among SIDS (and trading partners) of the need for good fisheries governance– International agreements provide for better management of fisheries resources (UNCLOS 1982 including the right to exploit EEZs; FAO Code of Conduct for Responsible Fisheries (1995) and the UN Agreement on Straddling and Highly Migratory Stocks (1995)
Fisheries Opportunities for SIDS1. Collaborative regional management of fisheries (e.g. Tuna RMFOs, ICCAT in the Atlantic, IOTC in the Indian Ocean and WCPTC and IATTC in combination with the Forum Fisheries Association in the Pacific2. The Global Island Partnership (GLISPA) (launched in 2006) is a global entity working to help islands around the world conserve and sustainably utilize their invaluable natural resources
Options for better returns1. Fishing should contribution toward Sustainable Exploitation (MEY vs. MSY)2. The need to improve knowledge of the fishery (better data collection and analysis)3. Good governance aimed at elimination of IUU Fishing4. Support integration of the national fisheries sector into the global economy (e.g. Via Joint Ventures rather than FFA). Good examples are Namibia5. To realize the massive wealth-generating potential, it is important to create an enabling environment that provides fishers with incentives and confidence to invest in the fish resource itself
Estimation of rent using octopus Mauritania fisheries OPTION 1: keep 10 boats and reduce f à fMSY CA=$119m MSY 34.000t CTPrice Rent =$26m$3.500/t 26.600t Revenu, Coût, Rendement$93m RT Cost =$93m Surplus effort 31% Effort de pêche 100
Estimation of rent using octopus Mauritania fisheries OPTION 2: Reducing f by reducing the number of boatsPrice CA=$119m$3.500/t MSY 34.000t CTCost/boat Revenu, Coût, Rendement$0,93m Rent=$54m RT Surplus effort 31% Cost=$65m 70 Effort de pêche 100
Best Practices among SIDS1. Western and Central Pacific Ocean (WCPO) tuna fisheries capture ~2.4 million tons annually2. The fishery is managed by the Western and Central Pacific Fisheries Commission (WCPFC)3. Pacific Island Countries (PICs) maintain the sovereign right of coastal States to determine catches within their EEZs4. WCPFC develops measures for the high seas5. Eight PICs have organized as the Parties to the Nauru Agreement (PNA; Federated States of Micronesia, Kiribati, Marshall Islands, Nauru, Palau, Papua New Guinea, Solomon Islands and Tuvalu).6. The PNA are managing the WCPO purse seine fishery, maximizing economic returns from their members’ coastal resources and developing their domestic industries and economies.7. Vessel Day Schemes (VDS) are used, resulting in revenues from fishing access fees to comprise over 40% of some of the PNA members’ GDP.
Where are Best Practices?• A Vessel Day Scheme (VDS) for controlling purse seine tuna fishing effort within the national waters of eight members of the Parties to the Nauru Agreement was implemented in December 2007.• While originally conceived as a mechanism to control fishing effort, the VDS has the capacity to complement and possibly replace historical bilateral access agreements through creation of an economic instrument capable of optimising rents from foreign fishing by defining, selling and trading a limited supply of harvesting rights owned by coastal States (MRAG 2012).• To supplement the VDS, the PNA adopted further conservation and management measures for foreign fishing vessels in 2008 which included 100% purse seine observer coverage, a three-month closure of FAD fishing, and prohibition of fishing by PNA-licensed vessels in high seas pockets.
Conclusion and way forward1. Increases awareness amongst key policy makers of the true value of the fish resources2. Can create an enabling environment that provides fishers with incentives and confidence to invest in and manage the fish resources3. Develops practical strategies that can help realise wealth generation potential of fish resources4. Strategies for adaptation to climate change (NAPAS) should include fisheries5. SIDS should adopt collective bargaining position on international negotiations6. SIDS should share information on the market value of their fish resource7. SIDS should be more integrated into the mainland economies in order to tap into regional markets