The department of forestry, fisheries and the environment (DFFE) held a seminar at Stellenbosch University to discuss finance and investment in the aquaculture sector.
The overarching theme of the seminar was “Refocusing investment into the aquaculture sector with emphasis on economic recovery”.
Kishan Sankar, the aquaculture advisor for the Operation Phakisa initiative by the DFFE, provided a detailed overview of the country’s aquaculture sector.
“South Africa’s aquaculture industry has shown impressive growth over the past decades, contributing significantly to both the national economy and global food supply,’’ he said.
Species making waves
Sankar shared that the growth in South Africa’s aquaculture sector is particularly dominated by marine production, which accounts for 80% of total output.
Leading species include abalone, with over 3 000 tons produced, followed by mussels and oysters. In the freshwater industry, trout leads the way with just over 1 000 tons, with tilapia and other species also contributing.
Sankar noted that there are around 200 aquaculture farms currently operating in South Africa, with the majority located in the Western Cape.
“The Western Cape leads the sector, producing over 6 000 tons, although its large protected coastline makes it challenging to expand. KwaZulu-Natal follows closely behind, contributing significantly to national production,” Sankar said.
Addressing issues regarding support to small-scale fisheries, Sankar assured that the department is making significant strides from a technical and environmental perspective.
“Recently, we signed a memorandum of understanding (MoU) with colleagues from the department of small business development. Through this partnership, we aim to support small-scale farmers by addressing key challenges such as business plans and soft skills, alongside the technical aspects of aquaculture,” he said.
Criteria for development programme
Meanwhile, Paseka Masemula from the department of trade, industry and competition discussed the criteria for the aquaculture development and enhancement programme (ADEP).
He shared that the ADEP covers commercial vehicles and reworks, as well as competitive improvement activities, including research and development costs (excluding salaries) specifically for black-owned enterprises.
“For an enterprise to qualify as 100% black-owned, operational and management control must be in the hands of black individuals who have a long-term commitment to the business.
“The investment quantum must meet certain thresholds, and the enterprise must score at least three out of five points on the economic benefit criteria, which include job creation and participation of people with disabilities,” he said.
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Luvo Gugwana, a small-scale farmer and founder of Greenarch Innovations, shared that aquaponics, an integrated system combining fish farming (aquaculture) and crop production (hydroponics), is being introduced to help communities engage in sustainable agriculture.
Funding and regulatory challenges
He said this method addresses the challenges of complex compliance regulations in aquaculture, especially in heavily regulated provinces like KwaZulu-Natal which has many marine protected areas and state-owned regulatory bodies.
However, he highlighted that fragmented regulations across different departments, such as water use and fish breeding licenses, present ongoing challenges for funding. Gugwana further explained that the state-owned regulatory bodies present significant challenges for aquaculture ventures.
“The goal is to create a more consolidated approach, bringing together all relevant stakeholders to streamline compliance and support the growth of aquaponics systems,” he said.
Henry Josephs, a Land Bank representative, explained that Land Bank and the department of rural development and land reform partnered to introduce a blended finance scheme to help South African black-owned farming enterprises access finance.
“The focus is on black-owned and managed farming enterprises that are commercially viable and operate within priority commodities, as outlined in the Integrated Agricultural Master Plan (IAMP). The scheme has a particular emphasis on businesses that are 60% to 100% black-owned,” he said.
- Click on this link to download the Absa AgriTrends report, which highlights South Africa’s agricultural export landscape and how the sector is adapting to global challenges.
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