Investment Opportunities For Fisheries In Tanzania

Introduction

Tanzania is a country with rich aquatic ecosystems in Africa. The fisheries sector in Tanzania plays an important role in socio-economic development. It contributes around 1.4% to GDP and around 10% to Tanzania’s foreign exchange earnings.

There are great opportunities to enhance the long-term sustainability of this sector. This article explores the investment opportunities in the fisheries sector in Tanzania. It discusses the current state, challenges, and potential pathways for sustainable practices.

A worker sorting a pile of small fish in Zanzibar. — stock photo

Importance of Fisheries in Tanzania

The fisheries sector in Tanzania is an important economic sector. It is a source of food security, employment, recreation, tourism, etc.

Many people depend on coastal resources or inland lakes for their livelihoods. Tanzania’s fishing sector employs more than 180,000 people, and over 19,000 are in fish farming. The sector provides about 4 million jobs, about 35% of rural employment.

The EU would be wise to invest in African aquaculture and fisheries, Photo: WorldFish

Fish is also essential to nutrition. It provides about 22% of animal protein in the diet. Despite the country’s low consumption, at 5.6 kg/person/year, fish makes up 19.7% of the country’s animal protein intake.

Fisheries also contribute to the national economy through exports. Species like Nile perch and shrimp are prominent in international markets. The sector contributes to the country’s economic and social well-being.

Hence, the demand for investments is increasing in Tanzania. The government, the Ministry of Agriculture Livestock and Fisheries, focuses on creating a sustainable environment. The authorities ensure political stability and easy market access to attract investments.

Why Invest in Tanzania’s Fisheries Sector

Despite challenges, Tanzania is implementing several strategies to promote sustainable fisheries management. Investing in Tanzania’s fisheries sector benefits both local and international investors.

1. Tanzania’s diverse natural water resources range from inland to marine waters. This provides a solid foundation for investment in wild capture fisheries and aquaculture.
2. The population is growing — expected to reach over 70 million by 2030. So, the demand for affordable and nutritious food, mainly fish, will increase.
3. Community-based fisheries management (CBFM) is a promising approach to promote sustainable practices. Investors can get support from local communities in decision-making and management processes.
4. The demand for fish is rising, as are the pressures on wild fish stocks. The aquaculture sector is also booming. Investors can invest in popular species like tilapia and catfish in local and international markets.
5. The government is promoting sustainable aquaculture practices and providing training and resources to fish farmers. Policies and development strategies support investors in achieving smooth execution. Investors can offer unique value propositions like organic or sustainably sourced fish. Investing in sustainable fishing practices meets the growing demand for seafood.
6. Investing in research and data collection is crucial for sustainable fisheries management. Collaboration with research institutions, such as the Tanzania Fisheries Research Institute (TAFIRI), is also important. Investors can dive into this sector as the demand is growing.
7. Investors can explore partnerships with microfinance institutions. They can establish funding mechanisms to support small-scale operators.
8. Another option is to invest in technology as the industry grows. This will improve efficiency and reduce waste. By establishing processing facilities, investors can add value to raw fish products.
9. Tanzania’s strategic location along the Indian Ocean helps investors access international markets.
10. Investing in infrastructure helps Tanzania’s fisheries sector grow. Building or improving landing sites, processing facilities, and transportation networks are beneficial.

Challenges & Opportunities of the Fisheries Sector

The fisheries sector of Tanzania has significant potential for investment. To successfully invest, investors must understand the fishing industry navigating several challenges:

A vendor swims to shore from a fishing boat after purchasing a catch of sardines in Stone Town, Zanzibar, Tanzania, PHOTO: AFP/GETTY IMAGES

1. Limited resources and capacity. The government and authorities are focusing on it. They formulated policies and legal frameworks to boost private sector growth and development.
2. Overcapacity, overfishing, exploiting fisheries resources, and illegal fishing. Several government programs and incentives promote the fisheries sector. These include tax breaks and grants for sustainable initiatives. For example, Fisheries Act №22 of 2003 focuses on sustainable development. It protects fish, fish products, and aquatic plants. It regulates and controls aquaculture. Investors can leverage government support.
3. Competitive Fish Market. The Export Processing Zones Act 2002 establishes and manages Export Processing Zones. It aims to create international competitiveness for export-led growth.
4. The high cost of fisheries resource management is another challenge of the sector. Investors can explore partnerships to leverage support.
5. Inadequate marketing and economic and social data for different fishery sectors. It affects the policy and decision-making processes. Collaborating with local fishers and communities can support.
6. Collaboration among resource management institutions, both public and private, must also improve. The government and authorities focus on that.
7. Lack of environmental education and awareness among key stakeholders. They need knowledge of the sustainability of fishery resources. Investing in this sector can be beneficial for both parties. The government introduced the Tanzania Investment Centre (TIC) to promote private investment. TIC is the one-stop center for all investors’ inquiries and other investment incentive packages. Tanzania Fisheries Research Institute (TAFIRI) Act №11 of 2016 conducts fisheries research to advocate government and private sector.
8. Over-dependence on fishery resources for livelihoods in coastal communities. Supporting alternative sources will benefit both investors and the communities.
9. BMUs (Beach Management Units) lack the capacity to manage resources effectively. The units struggle to address challenges at the community level. Providing training, secured fund, and improved leadership, investors can encourage community involvement and collaboration.
10. Insufficient number of fisheries staff. So, investment in a co-management regime ensures improvement in this sector.

Conclusion

Tanzania’s fisheries sector is crucial to socio-economic development. The potential for investment in this sector is vast. From 2005 to 2010, Tanzania earned US$195.2 million per year from exporting fish and fishery products. The industry offers many opportunities, from aquaculture development to sustainable marine practices.

Development in this sector is crucial to balance conservation efforts with economic development. Despite challenges, the potential for growth and impact is significant. With proper guidance and support, the fisheries industry will glow.

Investors can benefit from the fisheries sector by prioritizing sustainability with technology. The investors can contribute to the conservation of Tanzania’s rich fisheries sector. Tanzania’s fisheries sector can thrive, benefiting both investors and the nation.

References:

1. Fisheries and Aquaculture: United Republic of Tanzania
2. Tanzania: Where We Work
3. The Importance of Wild Fisheries For Local Food Security: Tanzania
4. A Review Of The National Fisheries Management Plans For Tanzania
5. The Fisheries Sector Master Plan (2021/22–2036/37), Ministry Of Livestock And Fisheries, The United Republic Of Tanzania
6. Investment Opportunities For The Blue Economy And Fisheries — Zanzibar
7. Infrastructure Investments are Improving Lives and Livelihoods in Tanzania
8. The challenges experienced by small-scale fishing communities of Lake Kariba, Zimbabwe
9. The EU would be wise to invest in African aquaculture and fisheries
10. Tanzania Focuses on Illegal Fishing, Boosting “Blue Economy”
11. The United Republic of Tanzania, Tanzania Investment Centre | fishing sector