Fish is an important source of animal protein in developing coastal countries, including Ghana.

1. EminentPanelConference,Accra,August7th -9th,2020
Policies Towards Sustainable Management of
Artisanal Fisheries In Ghana: Preliminary Findings
Wisdom Akpalu
(GIMPA and EfD-Ghana)
Brad Wong
(CCC)

2. Introduction
 Fish protein constitutes 60% of animal protein in Ghana.
 BUT fish consumption per capita has been declining (20-23kg).
 Current consumption is 50% lower than the recommended figure (40kg) (FAO).
 Employs about 20% of the active labor force (2.7 million people).
 About 18% of jobs is in fish processing and distribution, done by women.

3. Current state of Artisanal fishery in Ghana
 Artisanal fisheries contributes 15% to agricultural GDP.
 Yet, the artisanal fisheries faces several challenges:
Overcapitalization (too many canoes)
The use of illegal fishing gears (small mesh size and light aggregation devices)
Pre-mix fuel subsidies, further enhancing capacity.
Pressure from trawl vessels, that target the “people’s fish”

4. 1st analyzed solution
Replacement of illegal/destructive fishing
nets

5. Background
 90% of artisanal marine fishermen in Ghana use illegal mesh sizes
 When the nets are replaced:
- ST: Harvest will reduce by 28% on average (Akpalu, 2008).
- LT: Average size of fish caught will be bigger, hence more valuable.

6. Information on costs
Replacement of illegal fishing nets would cost GHS 267m (undiscounted)
 Target:
 Poli/Watsa nets, Ali nets and beach seine (GHS
165m)
 Expenditure on sensitizing the fishermen, GHS 0.5m
 Lost Rents to fishermen within the first year GHS 101m
 After year 1: bigger-sized fish higher price
increased profit.

7. Information on Benefits
 ST: Fig 1, Pink concave function
 lost of Rev. in year 1 (catchability coefficient effect)
 LT: Fig 2, Pink concave function
 Size effect (fish becomes bigger)
 Price effect (price per kg increases)
 Annual benefit: GHS 189 million
 Profit per boat increases by 52%.
BCR=5
Total Benefits (PV) = GHS 1.3 Billion at 8% discount rate over 10 years

8. 2nd analyzed solution
Limiting the number of canoes while providing training and
subsidizing feed for aquaculture.

9. Background
 Profits are much lower than what they ought to be owing to excess capacity in
the fishery.
 To maximize profit, the number of canoes must be reduced.
 If done total profit will increase by GHS 107 million per year.
- But about 40,000 jobs will be lost
- corresponding loss of income is GHS 66m per year.
 The displaced fishermen may be incentivized to take up fish farming in ponds and cages.

10. Information on costs
 9,188 canoes maximizes resource rents
 The current number of boats is 12,728.
- The excess of 3,540 boats (38,940 fishermen)
 Total annual rents of the remaining boats will increase by
GHS107m.
 Foregone annual profit for displaced fishermen is GHS66m
 Thus, net gain to society from effort reduction is GHS41m

11. Information on costs
 Average pond size = 10m by 20m
 Farming Cost:
 Fixed Cost = GHS 7,700 per farm
 Variable Cost = GHS 1,600 per pond.

12. Information on costs
• Government Support (1 pond in
the 1st 2 years):
•Extension Cost = GHS5m
•Displacement expenses GHS66m
•Subsidy : GHS101m
• Government Support ( 2 ponds
in the 3rd and 4th years):
•Extension Cost = GHS2m
•Displacement expenses GHS66m
•Subsidy (feed): GHS37m

13. Information on costs
• Government Support (3 pond in
the 5th and 6th years):
•Extension Cost = GHS2m
•Displacement expenses GHS66m
• Government Support (4 ponds or
more after the 7th year):
•Displacement expenses GHS66m

14. Information on benefits
 At 8% social discount rate over 10
years:
 Total Benefit = GHS4.5Billion
 Total Cost = GHS3.8Billion
 Corresponding B/C ratio:
BCR=1.2

15. 3rd Analysed Solution
Installing video devices in the trawl vessels

16. Background
 There are approximately 80 trawl vessels operating in the fishery.
 Artisanal lose about 52% of potential rents/profits annually.
 In addition, the trawlers:
 illegally target small pelagic species (anchovy, sardine and mackerel)
 transship them to canoes operated by middlemen.
The illegal practice (saiko) is accelerating the depletion of pelagic stocks.

17. Information on costs
‘FishEye of Trident’ can be installed on each vessel at an estimated total cost of GHS
10.8 million,
Each vessel will be monitored by two individuals:
 Training cost of GHS 5,400 per person
 Annual salary of GHS 32,400 per person.
 The annual maintenance cost of the equipment is estimated to GHS5.54m
The total cost = GHS 22.4m in the first year and GHS 10.7m per year thereafter.

18. Information on benefits
 Pelagic stocks will spill over inshore and
increase artisanal catch.
 Estimated annual increase in profit is GHS
260m.
 This is equal to a 72% increase in artisanal
profits.
 The total net benefits are about GHS1.75b
at an 8% discount rate over 10 years
BCR =21

19. Summary
Intervention Benefit
(GHS,
millions)
Costs (GHS,
millions)
BCR
Replacement of illegal
nets
1,266 247 5
Restricting fishing boats
while providing training
and subsidising feed for
aquaculture
4,465 3,786 1.2
Planting of video devices
on Trawl vessels
1,747 83 21