Creating a conducive investment
environment
Operation Phakisa: Oceans Economy
Belemane Semoli
Aquaculture Investment Seminar
27 March 2019
Global demand for fish products is projected to grow by 48%
in 2030 years, with Aquaculture expected to meet more than half
Fish consumption to increase with growing world population and
increasing diet concerns
Fish consumption forecast
Million tons
Influencing Factors of Demand
Rising global
population
▪ Global population growing at 1.1%
pa, projected to reach 8.6 billion in
2033
▪ Static capture fisheries production
unable to meet rising global demand
Movement
towards
healthier diets
in wealthier
countries
▪ Fish provides not only high-value
protein, but also a wide range of
essential micronutrients, including
various vitamins (D, A and B),
minerals (including calcium, iodine,
zinc, iron & selenium) and
polyunsaturated omega-3 fatty acids
▪ FSA recommends at least 2 portions
of fish per week
Greater
product use
▪ Seaweed is used as gelling agent for
various processed food and
pharmaceutical products e.g.
toothpaste and chocolate
Increasing
Demand for
premium
products
▪ Growing affluence especially in
Middle East and Asia has led to
growth in premium products e.g.
grouper - US FDA has classified
carrageenan (seaweed) as an
organic product
Global consumption
Kg fish / capita
1815
1312
+1% p.a.
2009 1990 1980 1970
185
+48%
2030 2009
125
+2% p.a.
Mostly in the developing world,
in urban areas due to
increasing longevity and
immigration
SOURCE: FAO, Fish to 2030
Potential for the Aquaculture Sector in South Africa
DAFF has identified aquaculture as a sector that presents a good opportunity to diversify
fish production
Satisfy local demand
Contribute to food and nutritional security
Create sustainable job opportunities
Foster economic development
Capitalise on export opportunities
Stimulate rural development and livelihoods
Attract foreign direct investment
Safeguard sustainable environmental integrity
Create SMMEs and wealth generating opportunities through Aquaculture
SOURCE: DAFF National Aquaculture Strategic Framework
What enablers are required?
AQUACULTURE OPERATION PHAKISA INITIATIVES DEVELOPED DURING THE LAB (OCTOBER 2014)
SOURCE: Aquaculture Lab
Regulations
Skills
Market
Funding
Selection and Implementation of Catalyst Projects 1
Inter-Departmental
Authorisations Committee 3
2
Capacity building and skills development
Legislative reform 4 Globally recognised
monitoring and
certification system
8 Government Preferential
Procurement
Coordinated industry-wide
marketing efforts 7
Aquaculture Development Fund 5
6
9 Aquaculture Development Zones (New)
24 ORIGINAL AQUACULTURE PROJECTS
6 projects removed, placed onto business opportunities Ventersdorp Catfish, ADZ Ventersdorp, Algoa Bay Yellowtail, Oceanwise ELIDZ and Southern Atlantic,
Paternoster Oyster, Amatikulu ADZ removed to Initiative 9 (ADZ)
SALDANHA BAY
New farm: Molapong Cages
Expansion of Blue Ocean Mussels
Expansion of Saldanha Bay Oyster
OVERBERG
Expansion of Roman Bay
Expansion of Abagold
Expansion of Marine Growers
Expansion of HIK Abalone
RICHARDSBAY
New farm: Richards Bay Sea Cage Farming
DORING BAAI
Expansion of Doring Bay Abalone
JACOBSBAAI
Expansion:Jacobsbaai Sea Products
HONDEKLIP BAY
New farm: DCA Ranching
Expansion of DST Abalone Hatchery
AMATIKULU
Expansion of Amatikulu ornamentals
HAMBURG
Expansion of Hamburg Oyster farm
New farm: Hamburg Kob
Coastal provinces
SMME’s (6)
Inland Provinces
Western Cape
Eastern Cape
Kwazulu
Natal
Free State Northern
Cape
North
West
Mpumalanga
Limpopo
East London Saldanha
Overberg
Hondeklip Bay
Algoa Bay
Doring Bay
Gauteng
Phase 1 (6-12 months implementation)
Phase 2 (12-24 months Implementation)
Phase 3 (2-4 years implementation)
PORT ELIZABETH
New: Wild Coast Abalone Ranching
HAGA
Expansion: Wild Coast Abalone Farm
19 NEW AQUACULTURE PROJECTS POST THE LAB
SMME’s (9)
Western Cape
Eastern Cape
Kwazulu
Natal Free State
Northern
Cape
North
West
Mpumalanga
Limpopo
Saldanha
Port Elizabeth
Overberg
Gauteng
Coastal provinces Inland Provinces
Graaf-Reniet
Kleinzee
SALDANHA
Exp: Blue Sapphire Pearls
Exp: Imbaza Mussels
Exp: African Olive Trading
Exp: Aqua Foods SA
New: Requa Mussels
New: Chapmans Mussels
New: Xesibe
Exp: Salmar Trading
New: Oystercatcher
New: Southern Atlantic Sea farms
Exp: West Coast Oyster Growers
Exp: West Coast Aqua
PORT ELIZABETH
Exp: Zwembesi (oyster)
GAUTENG
New: Northdene (tilapia)
KLEINZEE
Exp: Really Useful Investments
GRAAF RENIET
Exp: Karoo Catch
Phase 1 Phase 2 Phase 3
HERMANUS
New: Hermanus Salmon
COEGA
RMS Abalone Farm
EDEN
New: Abalone Farm Aquinion
Dusky kob harvesting
in Richards bay
Mussels harvesting and processing in
Saldanha Bay
PROJECT HIGHLIGHTS
Abalone ranching underway Cape Recief
Growing abalone seeded
through ranching
Monitoring of kob at Hamburg
Project beneficiaries
Siyazama Cooperative
PROJECT HIGHLIGHTS
Ocean trout harvested and filleted
Saldanha Bay
Cultured Oysters
Saldanha Bay
SUPPORT PROGRAMMES
REGULATIONS
• Coordinated Authorization process
(Interdepartmental Authorization
Committee)
• Draft Aquaculture Bill
• (Streamlining of existing legislation
affecting aquaculture in South Africa)
• Strategic Environmental Assessment
(Mapping dedicated zones for aquaculture)
• Revised of Environmental Impact
(Shortened duration of the Environmental
Impact Assessment process reduced to 6
months)
13
CAPACITY BUILDING
• Targeted training on scare skills
(Training of aquatic vets and revising
programmes for aquaculture artisans)
• Targeted research and development
(Coordinated research in partnership with
Universities and other key institutions)
SUPPORT PROGRAMMES..
14
FUNDING
• Aquaculture Development Fund
Working Group
(Coordinate access to funding from over 30
Development Finance Agencies ranging
from grants to loans)
• Dedicated funding programme for
aquaculture
(Aquaculture Development and
Enhancement Programme under the
Department of Trade and Industry in
partnership with the Department of
Agriculture, Forestry and Fisheries)
MARKETING
• Marketing and Awareness Plan
Co-ordinate and promote aquaculture
locally and abroad
• State driven Food Safety Programmes
(Shellfish Monitoring Program and Finfish
Monitoring Programme to facilitate access
to market)
• Government Preferential Procurement
AQUACULTURE DEVELOPMENT FUND
The ADF Working Group is made up of the following key Development Funding
Institutions (DFI’s) and departments: Agriculture, Forestry & Fisheries: CASP &
Masifa Fund; Industrial Development Cooperation (IDC); LandBank; Eastern Cape
Development Corporation (ECDC); Eastern Cape Rural Development Agency
(ECRDA); Science & Technology; Jobs Fund; National Empowerment Fund; Trade &
Industry; Small Business Development; National Treasury Government Technical
Advisory Centre (GTAC)
Aquaculture Development Fund Model was investigated in 2016/2017:
Aquaculture Species Feasibility studies:
• Completed to assist new entrants and funding agencies/investors with informed decisions
• Available on the DAFF website
AQUACULTURE DEVELOPMENT ZONES - ADZs
16
WHAT IS AN ADZ?
• Land or water based area set aside
exclusively for aquaculture development
• Have bulk infrastructure required for
development and operation
• Identified based on:
- Locational advantages
- Availability of quality water
- Carrying capacity of the ecosystem
- Accessibility to markets
- Potential socio-economic impact
BENEFITS OF AN ADZ
• Minimize planning cost such as EIA
• Minimize cost of infrastructure (bulk
infrastructure available) – electricity, access
roads, etc)
• Easy access to services such as extension,
veterinary services, hatcheries, etc)
• Coordinated marketing
• Access to incentive programs.
Location & Size • Situated approximately130km from Durban and 7km
from Amatikulu River • Targeted area is 108 hectares • Land based zone Targeted Species • Ornamentals, Prawns, Marine and Freshwater
Finfish Current Status • Currently only 2 hectares are utilised for
ornamental fish farming • 2 ornamental farms in operation Potential Production and Job Creation • Production of 15 000 tons per annum • Direct Job Creation: 6 000 jobs • Indirect Job Creation: 10 000 jobs
Current Status • Two projects identified under Operation
Phakisa for the Amatikulu ADZ • Department of Agriculture, Forestry &
Fisheries are in negotiation with the Ingonyama Trust Board to obtain a letter of consent to utilise the identified site
• Department of Agriculture, Forestry & Fisheries initiated the process of obtaining Environmental Impact Assessment
• Department of Agriculture, Forestry & Fisheries, KwaZulu-Natal Wildlife & Trade Investment KwaZulu-Natal started engaging potential investors (one new investor for prawn farming)
KwaZulu-Natal Province: Amatikulu Aquaculture Development Zone
Investment Opportunities:
Location & Size • Situated approximately 20km east of Port
Elizabeth • Targeted area is 440 hectares for Aquaculture • Land based zone Targeted Species • Marine and Freshwater Finfish and Abalone Current Status • No fish farming is taking place at the moment • Project driven by the Coega Special Economic
Zone • Department of Agriculture, Forestry & Fisheries
provides technical support Potential Production and Job Creation • Production of 20 000 tons per annum • Direct Jobs - 10 000 & Indirect Jobs 15 000
Eastern Cape Province: Coega Industrial Aquaculture Development Zone
Progress
• Feasibility study conducted.
• Land-based Aquaculture EIA completed.
• Process for Marine Pipeline Servitude (MPS) EIA initiated.
• Town Plan for Zone 10 completed.
Challenges
• Possible opposition to the MPS EIA
Coega ADZ Town Plan
440 Ha in Zone 10
− 100 Ha – marine
− 250 Ha – freshwater
− Processing facilities
− Fish feed
− Training and R&D
Coega ADZ Phase 1
Location & Size • Situated in the west bank of East London adjacent
to the East London Airport. • Area is 32 hectares • Land based zone Targeted Species • Marine and Freshwater Finfish (salmon), Abalone
and Seaweed Current Status • Currently two farms in the zone • Current production of 200 tons Potential Production and Job Creation • Production of 10,000 tons per annum • Direct Job Creation: 2 000 jobs • Indirect Job Creation: 3 000 jobs
Progress • Zone driven by the East London Industrial
Development Zone • EIA granted for finfish and abalone culture • One farm identified under Operation Phakisa • Continuous marketing of the zone and
identification of potential investors • Two new farms to be established • Department of Agriculture, Forestry & Fisheries
provides technical support • Recently zoned for the culture of Barramundi,
Rainbow trout and Atlantic salmon
Challenges • An agricultural activity in the Industrial
Development Zone results in high levies for the farmers
• Access to support services
Eastern Cape Province: East London Industrial Development Zone
Location & Size • Situated 60km northeast of East London • Area is 26.4 hectares • Land based zone Targeted Species • Marine Finfish, Abalone and Seaweed Current Status • Facilitating funding for support of infrastructure
development • Department of Agriculture, Forestry & Fisheries
initiated process of identifying potential investors Potential Production and Job Creation • Production of 2 000 tons per annum of Dusky kob
or 700 tons per annum Abalone
• Direct Jobs (1000); Indirect Jobs (2000)
Progress • Environmental Impact Assessment approved • Waste Management permit issued
• Community resolution issued
• Department of Agriculture, Forestry &
Fisheries has developing zone designs, architectural and management plans
• Progress on obtaining lease from Dep. Rural Development and Land Reform
Challenges • Access to funding for infrastructure
development.
Eastern Cape Province: Qolora Aquaculture Development Zone
Location & Size • Algoa Bay, Port Elizabeth • Area is 285 hectares • Sea based zone Targeted Species • Finfish (yellowtail) Current Status • No farming activities are taking place currently Potential Production and Job Creation • Production of 1 000 tons per annum • Direct Jobs 220 • Indirect Jobs 780
Eastern Cape Province: Algoa Bay Aquaculture Development Zone
Progress
• Environmental Authorisation granted
• Environmental Authorisation has been advertised in the local newspapers as per requirements
• Appeals have been submitted to Department of Environmental Affairs
• Department of Agriculture, Forestry & Fisheries to respond to appeals to enable Environment Affairs’ Minister to make a decision in light of the submitted
Challenges
• Objections raised by lobby groups may delay the finalisation of the authorisation.
Location & Size • The Vanderkloof Dam is situated in the
Northern Cape approximately 130 km downstream from Gariep Dam and is fed by the Orange River.
• Vanderkloof Dam is the second-largest dam in South Africa (in volume).
Targeted Species • Freshwater Finfish (trout).
Current Status • No farming activities are taking place
currently. Potential Production and Job Creation • Production of 11518 tons per annum • Direct Jobs 1000 • Indirect Jobs 1000
Northern Cape Province: Vanderkloof Trout Aquaculture Development Zone
Progress
• Feasibility study complete
• Environmental Impact Assessment Authorisation to be obtained
• Commencing trout pilot project
Location & Size • Saldanha Bay is situated on the west coast of
South Africa, approximately 100km north of Cape Town
Targeted Species • Mussels • Oysters • Marine (white stumpnose) and freshwater
finfish (salmon) Current Status • 10 aquaculture farms in operation in
Saldanha Bay
Western Cape Province: Saldanha Bay Aquaculture Development Zone
Progress
• Currently working on conducting blanket EIA for new entrants into the industry
• Currently have 4 phakisa projects in Saldanha Bay
• 6 new projects situated in Saldanha Bay applying for phakisa status
Thank you!!!
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