Coastal and inland fisheries: old challenges and new opportunities

1
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
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Outline of the presentation

1. Features of the Small Island States
2. Vulnerability of Small Island States
3. Importance of fisheries in SIDS
4. How can SIDS optimise the wealth-generating
   potential of fisheries?
5. Lessons from best practices
6. Conclusion

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Key Features of Small Island Developing States

1. 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 inhabitants
4. The group comprises countries that are relatively
   rich and those that relatively poor
5. SIDS are extremely dependent on the sea and its
   living marine resources for their existence.

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Small Island States Vulnerability

1. small size
2. remoteness
3. vulnerability to external (demand and
   supply-side) shocks
4. narrow resource base and
5. 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

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Small Island States Vulnerability to climate
change

1. 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
   zones
4. Destruction of coral reefs critical to food
   security and tourism)

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Small Island States Vulnerability to trade
imbalances

1. 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

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International Logistics Performance Index (LPI)
Comparison with some of the SIDS
LPI Rank Country LPI
28 South Africa 3.46
58 Senegal 2.86
Sao Tome Principe 2.86 (2007)
66 Uganda 2.82
78 Bahamas 2.75
120 Comoros 2.45
135 Solomon Islands 2.31
144 Fiji 2.24
149 Guinea Bissau 2.10
Source World Bank 2010
LPI compares transport costs, quality of
infrastructure (e.g., roads, ports, etc),
tracking and tracing of consignments, and
timeliness of delivery
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Importance of fisheries to SIDS

• According to the UN Department of Economic
  Social Affairs (2010)
• In some SIDS fisheries account for 50 of
  exports (UN 2010)
• Subsistence fishing supplies 50-90 of animal
  protein diet of people in rural areas and remote
  islands
• In Pacific tuna fisheries contributes 10 of GDP

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SIDS and the Extent of their EEZ
EEZ of African ISDS
EEZ of Caribbean ISDS
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Country and Size of EEZ
Country Population EEZ (km2)
Cape Verde 240,000 800,561km2
Comoros 794,683 163,752km2
Madagascar 21.9 million 1,198,722km2
Mauritius 1,303,717 1.9million km2
Seychelles 87,463 1,374,000 km²
Sao Tome Principe 200,000 165,364 km2
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Country and Fish production/Consumption
Country Fish Production (tons) Exports (tons) Per capita supply (kg) Fish/Animal Protein ()
Cape Verde 18,328 14,524 11.6 11.7
Comoros 16,000 0 19.8 56.3
Madagascar 159,035 44,776 7.4 19.6
Mauritius 8,476 132,554 22.8 18.4
Seychelles 66,239 63,471 61.0 40.6
Sao Tome Principe 4,150 6 26.5 49.3
FAO Yearbook (2009)
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Challenges of fisheries in the SIDS

1. Fish as an export commodity exerts pressure on
   the resources with potential of overfishing
2. Knowledge of the level of stocks might be lacking
   resulting in poor management plans
3. Poor knowledge of economic underpinning of the
   fisheries resources results in rent dissipation
4. Poor governance mechanism which is manifested in
   Illegal, Unreported and Unregulated (IUU) Fishing
5. Unfavourable trade mechanisms which leads to loss
   of value and wealth
6. Wealth loss through Foreign Fishing Agreements
   (FFA), (assess agreements are provided for under
   UNCLOS)

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Impact of governance structure on IUU Fishing
Country Catch value calculated from FAO statistics (2003) US million Average Governance Score IUU as proportion of estimated total catch IUU value US million
These figures are from country case studies These figures are from country case studies These figures are from country case studies These figures are from country case studies 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) These figures are extrapolated using the case studies above (one parameter model) These figures are extrapolated using the case studies above (one parameter model) These figures are extrapolated using the case studies above (one parameter model) 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.
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Wealth-loss in the value chain
Fig 1. Share of value of Nile Perch from Tanzania
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Wealth loss in the value chain
Fig 2. Share of value of Moroccan anchovy sold in
Italy
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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 1113 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

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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)
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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.
• Africas 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

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Wealth Generation Potential of African Fisheries

• Initial economic valuation undertaken by the
  NEPAD Agency and endorsed by the Conference of
  African Ministers of Fisheries Aquaculture
  (CAMFA) is as follows
• Africas fisheries as a whole has the first sale
  value of about US 4,861 million 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 is about US
  2 billion.
• However, capitalising this annual value at a
  discount rate of 9 gives an estimate of the
  wealth value of US22 billion.

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Fisheries Opportunities for SIDS

1. Demand for fish is rising globally, including
   Africa (rising middle-class)
2. 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)
3. 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.
4. More awareness among SIDS (and trading partners)
   of the need for good fisheries governance
5. 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)

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Fisheries Opportunities for SIDS

1. 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 Pacific
2. 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

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Options for better returns

1. 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
   Fishing
4. Support integration of the national fisheries
   sector into the global economy (e.g. Via Joint
   Ventures rather than FFA). Good examples are
   Namibia
5. 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

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Estimation of rent using octopus Mauritania
fisheries
OPTION 1 keep 10 boats and reduce f à fMSY
CA119m
34.000t
Rent 26m
Price 3.500/t
26.600t
93m
Cost 93m
100
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Estimation of rent using octopus Mauritania
fisheries
OPTION 2 Reducing f by reducing the number of
boats
Price 3.500/t Cost/ boat 0,93m
CA119m
34.000t
Rent54m
Cost65m
70
100
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Best Practices among SIDS

1. Western and Central Pacific Ocean (WCPO) tuna
   fisheries capture 2.4 million tons annually
2. 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 EEZs
4. WCPFC develops measures for the high seas
5. 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.

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Where are Best Practices?

1. 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.
   
2. 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).
3. 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.

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Conclusion and way forward

1. Increases awareness amongst key policy makers of
   the true value of the fish resources
2. Can create an enabling environment that provides
   fishers with incentives and confidence to invest
   in and manage the fish resources
3. Develops practical strategies that can help
   realise wealth generation potential of fish
   resources
4. Strategies for adaptation to climate change
   (NAPAS) should include fisheries
5. SIDS should adopt collective bargaining position
   on international negotiations
6. SIDS should share information on the market value
   of their fish resource
7. SIDS should be more integrated into the mainland
   economies in order to tap into regional markets