LocationsHow can Africa unlock its vast resources of its fishing sector as part of the continent’s sustainable development goals ambitions.
What the Fishery Industry can teach us about the AfCFTA’s implementation in the Regional Blue Economy Value Chains
August 27, 2024
UNDP Africa
Africa has over 30,000 Kilometers of untapped coastline of fishing industry. In contrast, China has approximately 18,000 kilometers of coastline and is the world’s largest fish producer dominating 35% of global supply. How can Africa unlock its vast resources of its fishing sector as part of the continent’s sustainable development goals ambitions.
The Fishery Economy in Africa
The fisheries sector in Africa holds significant potential to driving economic growth, ensuring food security and creating jobs. According to the Food and Agriculture Organization (FAO), fisheries and aquaculture are crucial for global food security and nutrition, providing a major source of animal protein. In Africa, these sectors are valued at US$ 24 billion annually and provide employment for over 12 million people. Of this workforce, 58% are involved in fishing, while 42% work in processing, with women making up 59% of the processing labor force. This gender dynamic underscores the sector’s role in promoting economic inclusion.
Despite extensive marine resources and a 30,000-kilometer coastline, Africa’s fishing industry’s potential remains untapped. Between 2021 and 2023, African countries imported more than US$ 6 billion in fishery products annually, with the majority sourced from outside the continent, in frozen or processed forms. This heavy reliance on imports underscores missed opportunities for local production and value addition (see figure below). It also reflects deeper challenges such as infrastructure gaps limited enforcement of regulations and unregulated activities that are depleting marine resources. The World Bank estimates that Illegal, Unreported and Unregulated (IUU) fishing costs the region about US$ 1.3 billion annually in lost revenue. While multilateral agreements like the World Trade Organization (WTO) agreement on fisheries subsidies aim to address some of these challenges, African countries require considerable support to implement and comply with these obligations. Barriers such as limited access to markets, inadequate infrastructure and inconsistent policies continue to hamper Africa’s fisheries sector from reaching its full potential.
Figure: Africa's Imports of fish and fishery products, within Africa versus World markets, Average values, 2021-2023
Source: Authors based on data from UN Trade and Development Statistics (UNCTADStat)
For African island states and coastal countries, maximizing fishery potential while protecting marine ecosystems is a priority.
The promises of the AfCFTA for Africa's fisheries sector
Launched in 2021, the African Continental Free Trade Area (AfCFTA) presents a transformative opportunity to address the challenges facing Africa’s fisheries sector and unlock its full potential. By creating a single market for goods and services across fifty-five African Union Member States, the AfCFTA aims to reduce tariffs and non-tariff barriers, thereby enhancing regional integration and boosting intra-African trade. For sectors like fisheries, where cross-border collaboration is essential, the AfCFTA can be a game-changer.
An example of the AfCFTA’s potential to boost intra-African trade and empower local communities lies in the ‘Women and Youth Economic Empowerment in Fisheries’ programme. Launched by the AfCFTA Secretariat, in partnership with the Mastercard Foundation and TradeMark Africa during its 14th Meeting of the Council of Ministers for Trade in Zanzibar, this initiative aligns with the AfCFTA Protocol on Women and Youth in Trade. According to the AfCFTA Senior Advisor, Komla Bissi, the programme seeks to enhance the participation of MSMEs, women and youth in fisheries, with the ambitious goal of creating up to 250,000 jobs and increasing investments in fisheries value chain to about US$ 100 million per year.
Kati Farms, a women-led enterprise that is making waves in the fish processing sector in Eastern Africa, embodies a success story illustrating the transformative potential of the AfCFTA. Speaking at the UNDP-AUC Africa Blue Economy Week 2024, held from 23 to 25 July, in Addis Ababa, Lovin Kobusingye co-founder and CEO of Kati Farms touched on her journey emphasizing the crucial role of technical assistance and support in scaling her business. “13 years ago, I founded Kati Farms with my $800 savings. I later scaled up with grants provided by UNDP. Today, my business employs 38 staff, partners with over 1,000 fish farmers—mostly women—and exports to over 13 African countries.”
Despite challenges like limited access to finance, high transportation costs and regulatory hurdles, MSMEs like Kati Farms are well-positioned to thrive under the AfCFTA. Fully realizing integrated fishery markets requires investments to bridge current gaps and promotion of regional value chains.
Attracting investments and developing Regional Value Chains
The AfCFTA alongside global initiatives such as the WTO Aid for Trade, plays a pivotal role in creating a conducive environment for attracting infrastructure investments for trade integration. Private sector engagement is essential for mobilizing investments to develop Regional Value Chains (RVCs). “The AfCFTA Private Sector Strategy seeks to channel investments into strategic RVCs across four key sectors namely agriculture, pharmaceuticals, automotive and transportation, and logistics. This strategy can benefit island states, by enhancing their connectivity with the mainland and ensuring that the advantages of regional integration are evenly spread,” said Komla Bissi.
By developing RVCs, the AfCFTA can create an enabling environment that unlocks Africa’s fisheries potential, promoting economic growth, job creation and food security. However, reaching this potential while ensuring equitable distribution of benefits requires deliberate actions from policymakers and stakeholders as they implement the AfCFTA agreement. Key actions include scaling up investments in critical infrastructure, such as cold storage and cold chain facilities, and increasing technical assistance to improve compliance with Sanitary and Phytosanitary (SPS) standards. Adopting digital technologies for better data access and analytics will also promote innovation, safety, productivity, and sustainability in the industry.
For African island states and coastal countries, maximizing fishery potential while protecting marine ecosystems is a priority. These issues and more will be addressed through the joint UNDP–AUC Blue Economy Programme for Africa, which aims to foster a sustainable and inclusive transformation of the blue economy in Africa.
This piece draws on the discussions and key recommendations from the session on “Blue Economy and RVCs in the context of the AfCFTA” during the Africa Blue Economy Week 2024, held in Addis Ababa, Ethiopia, on 23-25 July 2024. The event was co-organized by the United Nations Development Programme (UNDP) and the African Union Commission (AUC).