Investing in South Africa's Aquaculture Sector - A future growth sector to be unlocked - InvestSA
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South
Africa
Factsheet
2020
Investing in South Africa’s
Aquaculture Sector
A future growth sector to be unlocked
Aquaculture production Provincial contribution to
Aquaculture in South Africa by species aquaculture production
0.1%
1% 1% 0.03%
> South Africa’s aquaculture sector is relatively
2%
small, contributing about 0.8% to the country’s fish 14% 3%
7%
production, accounting for less than 0.2% of the
national GDP. 33% 10%
> Given its growth potential, aquaculture has been 25% 2016 2016
earmarked as a priority sector by the government
and is a target sector of Operation Phakisa. 76%
> Both marine and freshwater aquaculture are currently 28%
conducted in about 200 marine and freshwater farms
in South Africa. Between 2006 and 2016, aquaculture Mussles Western Cape North West
Abalone Eastern Cape Gauteng
production more than doubled in output. Among the
Trout KwaZulu-Natal Northern Cape
species farmed are abalone, catfish, finfish, trout, Other Mpumalanga Free State
mussels, oysters and tilapia. Limpopo
> In 2018, South Africa exported US$500m worth of Aquaculture production, 2006-16
6 012
fish- and seafood-related products. Close to one- 6 000
5 210 5 418
4 802
third of these exports are molluscs, which include 3 927
3 133 3 633
abalone. Tonnes 4 000
3 138 2 999
2 642 2 246
> South Africa is one of the largest producers and 2 000
exporters of abalone and is famous for its farmed
0
premium abalone (Haliotis midae). The country 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
produces about 1 700 tonnes of abalone per year. Marine Freshwater
Why Strong import Attractive and
dependency
invest? South Africa remains about
sustainable alternative
As natural fish resources are
50% dependent on fish imports. under pressure, aquaculture
Aquaculture presents an attractive provides an attractive and
opportunity to reduce import sustainable alternative to
Rising global dependency and to ensure a provide a source of protein
fish demand sustainable supply of fish and for South Africa’s
Global fish demand is set to
increase by 20% in the next
seafood products to
South African
population.
2nd
10 years. More than 60% of this consumers. most
demand will be met by aquaculture +150m kg consumed
of fish imported protein in SA
production, increasing the need
for new investments
150m per year is seafood
tonnes
in aquaculture.
global fish World-class producer
consumption
by 2030 of niche products
South Africa is among the largest abalone
Fast growing Favourable producers in the world, with strong
export focus on Asian markets. Hong
sector natural resources Kong is estimated to account for 90% of
Aquaculture is one of the fastest Thanks to its natural resources, South Africa’s annual abalone exports.
growing food production sectors its extensive coastline and Annual abalone exports to China
globally. In South Africa, aquaculture good water quality, South (Mainland and Hong Kong)
recorded annual growth of Africa is well equipped are estimated to reach
8.6% (CAGR) between
US$135m in 2020. US$135m
for aquaculture
2006 and 2016. development.
+8% estimated exports
of abalone to
annual growth 3 900km China by
2006-16 coastline 2020Where to invest?
> The farming of freshwater species is concentrated in Limpopo, the Mpumalanga
Lowveld and Northern KwaZulu-Natal.
> Trout farming is predominantly conducted along the high mountain in the
Lydenburg area of Mpumalanga and the Drakensberg area of KwaZulu-Natal,
as well as in the south-western parts of the Western Cape.
> Marine aquaculture activities with focus on mussels, oysters, abalone, seaweeds
and prawns are concentrated in the Western Cape, Eastern Cape and Northern
Cape with smaller hubs in KwaZulu-Natal.
> The CSIR on behalf of the Department of Agriculture, Forestry and Fisheries
has identified nine strategic freshwater aquaculture and eight strategic
mariculture areas across the country.
1
LIMPOPO
2
3
MPUMALANGA
NORTH WEST GAUTENG
4
5 6
1
FREE STATE KWAZULU 2
-NATAL
1
8 Durban
NORTHERN CAPE 7
6
7 5 EASTERN CAPE
8 3
2
6 9 WESTERN CAPE
7 East London
4
Cape Town 4 3 Port Elizabeth
5
Strategic mariculture Strategic freshwater Aquaculture
aquaculture areas aquaculture areas Development ZONES
1 Durban-Richards Bay 1 Limpopo 1 Richards Bay ADZ
2 East London-Kei 2 Mpumalanga 2 Amatikulu ADZ
3 Port Elizabeth 3 Gauteng/North West 3 Qolora ADZ
4 Gouritz-George 4 Vaalharts 4 Coega ADZ
5 Hermanus-Arniston 5 Free State/KZN Highlands 5 Saldanha Bay ADZ
6 Velddrif-Saldanha 6 Richards Bay 6 Van der Kloof ADZ
7 Strandfontein-Lamberts Bay 7 Vanderkloof-Gariep 7 ELIDZ ADZ
8 Orange-Hondeklip Bay 8 Eastern Cape
9 Western CapeWhat support exists?
> Aquaculture holds potential for substantial contribution to economic growth, empowerment, youth and women
employment, sustainable food supply, and to reduce the pressure on natural fish resources. Given this potential, there
are a range of sector-specific and general support programmes and initiatives available.
Aquaculture Operation Phakisa Aquaculture Feasibility Studies
Development and Operation Phakisa is a Development Zones The national government
Enhancement strategic government initiative (ADZs) prepared feasibility studies
Programme (ADEP) launched in July 2014 to Government has identified for all major locally-farmed
The ADEP offers reimbursable promote the Ocean Economy. various Aquaculture aquaculture species to
cost-sharing grants for It has a mandate to speed up Development Zones (ADZs) establish the minimum
machinery and equipment, and simplify the processes throughout the country, three viability and location where
bulk infrastructure, land involved in creating, operating of which fall in the Eastern these species can be
and buildings, leasehold and using the country’s ports Cape. farmed. The studies also
improvements, competitiveness and maritime businesses. include indicative costs
improvements and commercial It aims to unlock economic for setting up aquaculture
vehicles and work boats. potential of the Oceans facilities.
Economy, including the
growth of the aquaculture
sector.
What are the opportunities?
0 8 : W o olworths
1st in 20 r s t retailer to
> Given the infancy of the sector, there are a range of unique
th e fi opportunities for investors that wish to leverage their
became e W W F -SASSI first-mover advantage.
to th s
commit r, w h ic h govern
har t e
Retail C le s ourcing
the sust
ain a b
he Key opportunities in aquaculture
p t io n s in both t
of fish o m e d fishing exist for a number of activities:
f a r
wild and ents. • Farming of freshwater and salt water species
environm
• Supply of aquaculture equipment and technology
• Supply of skills development programmes
for aquaculture
• Supply of veterinarian services
Salda 2018: • Supply of feed for aquaculture
nha B
cataly ay is s
s e growt et to • Local feed production
aquac h
ulture of the • Supply of water purification and filtration technology
Africa secto
after g r in So
given reen l uth • Spat breeding
for the ight is • Processing and canning of fish and seafood
develo
of the pmen
ADZ. t • Supply of logistics servicesHow to invest?
Opportunity Go Investment Investment
identification ahead preparation execution
Consult the • Decide on geographic • Acquire/lease site,
1 National location most suitable rent office space
Feasibility for investment • Apply for municipal
Studies for • Consult property services (e.g. water,
relevant Location specialists, real estate electricity)
identification agents to identify
species
suitable offices for
operations
Evaluate
2 • Conduct site visits
outcome of
of suitable locations
feasibility
study • Consult with HR/ • Conduct interviews,
recruitment hire staff
Take agencies about staff
3 requirements
• Apply for work permits
for expatriate staff
investment
decision Resourcing • Determine immigration • Open a bank account
requirements requirements
• Apply for finance
(HR, capital, • Determine funding
4 Decide on
model (e.g. self-
• Set-up IT
investment finance, IT) infrastructure/systems
funding, debt, equity)
strategy
• Consult with IT systems
in order
providers
to best
align to • Determine corporate • Register company
the market structure • Apply for licenses
opportunity • Determine licensing and and permits
permit requirements • Apply for National
Compliance • Consult with labour Level Incentives
lawyers Schemes, Skills
and legal affairs
• Consult with InvestSA and Other Support
to identify eligibility for Programmes
incentives, skills and
other support initiatives
InvestSA ready to assistKey contacts for more information
InvestSA
+27 861 843 384
Investsa@thedti.gov.za
http://www.investsa.gov.za/
the dti
contactus@thedti.gov.za
http://www.thedti.gov.za/
Brian Soldaat
Director: Resource-based Industries
Invest South Africa
Department of Trade and Industry
+27 (0)12 394 1238
Brians@thedti.gov.za
Lisa Mazaleni
Deputy Director: Investment Promotion
Aquaculture Operation Phakisa Unit
Department of Agriculture, Forestry and Fisheries
+27 (0)12 402 3331
LisaG@daff.gov.za
www.daff.gov.za
Information sources
AgriSETA, 2018; Allied Market Research, 2019; Aquaculture Yearbook South Africa 2017,
2019; DAFF, various years; the dti, various years; FAO, various years; Farmer’s Weekly,
various years; InvestSA, various years; MarketLine, various years; Sea Harvest, 2017;
Siemens Stiftung, 2017; TradeMap, various years; Traffic, various years; Who Owns Whom,
various years; Woolworths, 2015; WWF, various years. Research partner |You can also read
