Bernadette Deka-Zulu (PhD Researcher-Public Enterprise)
Last week, we explored potential of the ‘Blue Economy’ in Zambia. Today, we delve into Zambia’s aquaculture industry particularly the fisheries sector. Having been growing steadily in recent years, the fisheries industry is expected to continue as the country seeks to diversify its economy and reduce its dependence on copper mining. The industry offers a range of investment opportunities for entrepreneurs and investors, particularly for Micro, Small and Medium (MSMEs) fish farmers, who can benefit from government incentives and private funding options.
The potential of the aquaculture sector to boost food security and create employment in Zambia cannot be overstated. With a population of over 17 million people and a growing demand for fish, the current gap in fish production, which stands at over 60%, presents a significant challenge. This gap has resulted in an increased reliance on imported fish, which is often more expensive and of lower quality.
However, this gap also presents a unique opportunity for entrepreneurs and investors to tap into the potential of the aquaculture sector and contribute to the country’s economic growth. By investing in fish farming, innovative businesses can help to close the gap in fish production and improve food security.
Furthermore, the aquaculture industry has the potential to create employment as well as drive exports-as Zambia’s fish can be exported to other countries in the region, such as the Democratic Republic of Congo and Angola. This can bring in much-needed foreign exchange and help to reduce Zambia’s trade deficit.
Current Gap in Fish Production in Zambia
Zambia is facing a significant gap in fish production, with over 60% of the country’s demand for fish being met through imports. The current annual demand for fish and potential capacity in the country is estimated to be over 160,000 metric tons, while the local production is only around 65,000 to 80,000 metric tons per annum. This shortfall presents a significant challenge to the country’s economy and food security.
The demand for fish is driven by several factors, including population growth, urbanization, and changing dietary habits. Fish is a significant source of protein for many Zambians, and as the population grows, the demand for fish is expected to increase. Additionally, as more people move to urban areas, the demand for fish is likely to rise, as urban dwellers tend to consume more fish than rural populations.
The current gap in fish production has several negative impacts on the country’s economy. Firstly, the reliance on imported fish means that Zambia is spending a significant amount of foreign exchange to meet the demand for fish. This can lead to a trade deficit, as the country’s exports may not be enough to cover the cost of imported fish.
Secondly, the high cost of imported fish makes it difficult for many Zambians to afford this important source of protein particularly among low-income households.
Finally, the current gap in fish production represents a missed economic opportunity for Zambia. By increasing local fish production, the country can create employment opportunities and generate revenue from exports. This can help to reduce poverty and improve the livelihoods of millions of people in the country.
Fisheries Production in Zambia
Zambia has a variety of fish species that can be produced through aquaculture, but the two most common species are tilapia and catfish. Tilapia is a popular species in Zambia due to its hardiness, fast growth rate, and excellent taste. Catfish is also a popular species due to its unique flavor and texture.
Tilapia is the most widely farmed fish in Zambia, with over 80% of local production being tilapia. This is due tothe high demand for tilapia in the market, as it is a popular and affordable source of protein. Tilapia is also preferred because it can be farmed in a variety of environments, including ponds, tanks, and cages.
Catfish, on the other hand, is less commonly farmed than tilapia, but it has a growing market demand in Zambia. Catfish is known for its unique taste and texture, which makes it popular among consumers. Additionally, catfish is hardy and can be farmed in a variety of environments, making it a good option for small-scale farmers.
Both tilapia and catfish have good market demand in Zambia, and the demand is expected to increase as the population grows and dietary habits change. The market for fish in Zambia is driven by factors such as population growth, urbanization, and an increasing awareness of the health benefits of fish consumption.
In addition to tilapia and catfish, Kapenta, is a type of small, freshwater sardine, which forms part of staple foods in the Zambian diet, is commonly consumed dried or smoked. However, kapenta is expensive on the Zambian market due to its high demand and limited supply.
Despite its high cost, kapenta remains a popular and important food source for many Zambians, especially those living in rural areas.
Sectoral Investment Opportunities
Investing in the production of a variety of fish species in Zambia can be a profitable venture, especially for small-scale farmers.
This presents an opportunity venture capitals to invest in the production of kapenta and help to increase the local supply, thereby reducing the cost and making it more accessible to consumers. Kapenta is currently on high demand across the country.
Investors and entrepreneurs can also tap into the potential of the tilapia and catfish markets.
By improving the efficiency and productivity of fish farms, businesses can increase local fish production and help to close the gap in fish production. This can also help to create employment opportunities and boost the country’s economic growth.
As it we have established, the aquaculture industry is an important part of Zambia’s blue economy, and its growth has the potential to drive economic development and improve the livelihoods of millions of people. By investing in the sector, entrepreneurs and investors can help to close the gap in fish production, boost food security, and create employment opportunities in the country.
Current Suppliers and Successful Aquaculture Businesses
Currently, fish in Zambia is supplied by both large and small-scale farmers, as well as through imports. Large-scale farmers tend to produce the majority of fish in the country, while small-scale farmers contribute a smaller portion of the total production. However, small-scale farmers have an essential role in providing employment opportunities and contributing to local food security.
Investment opportunities in the aquaculture industry in Zambia are numerous and diverse, ranging from small-scale family farms to medium and subsequently large commercial enterprises. The government of Zambia has implemented several incentives to attract investment in the sector, including tax breaks and subsidies for inputs such as feed and fingerlings. More can be done by private sector investment funding companies.
Successful fishery businesses in Zambia provide examples of the potential for investors and entrepreneurs in the sector. One such business is Yalelo, a tilapia farming enterprise that has rapidly expanded since its inception in 2011. Yalelo currently operates several large-scale tilapia farms in Zambia and has become one of the largest producers of tilapia in the country.
Another example is Kasaka River Lodge, which is a small-scale catfish farming operation that has successfully integrated aquaculture into their ecotourism business model. Kasaka River Lodge produces catfish for their restaurant and for sale in the local market, providing a sustainable source of income for the local community.
These success stories highlight the potential for investment and growth not only in the fishery sector, but also extending opportunities to the whole aquaculture industry in Zambia.
Funding Opportunities and Effectiveness
Funding opportunities are available to support small-scale fish farmers in Zambia. The government and various non-governmental organizations (NGOs) provide funding options that can help small-scale farmers overcome some of the financial challenges they face in starting or expanding their aquaculture businesses.
One funding opportunity available to small-scale farmers is the Citizens Economic Empowerment Commission (CEEC) loans, which are intended to provide affordable financing to Zambians who wish to start or expand their businesses. These loans are specifically targeted at small and medium-sized enterprises, including those in the aquaculture sector.
In addition to the CEEC loans, the government of Zambia has implemented various agricultural programs to support small-scale farmers, including those in the aquaculture sector. For example, the Farmer Input Support Programme (FISP) provides support to farmers in the form of subsidized inputs such as fertilizers and seedlings.
The effectiveness of these funding opportunities is largely dependent on how well they are implemented and managed. In some cases, small-scale farmers have reported difficulties in accessing these funding opportunities due to a lack of information or cumbersome application processes.
However, there are also success stories of small-scale fish farmers who have been able to access and utilize funding opportunities to their advantage. For example, some farmers have used CEEC loans to purchase equipment and inputs needed to expand their operations, while others have used FISP support to increase their production and improve their livelihoods.
Funding opportunities can play a critical role in supporting the growth of small-scale fish farming in Zambia. However, it is important that these opportunities are well-designed, well-implemented, and accessible to all those who need them.
Utilizing Opportunities for Micro, Small and Medium Farmers
Small-scale fish farmers in Zambia can take advantage of the investment and funding opportunities available to them by seeking out information on government programs and private funding options. They can also consider forming partnerships or cooperatives with other farmers to access funding and resources that may not be available to them individually.
To improve the profitability and sustainability of their businesses, small-scale fish farmers can focus on improving their production techniques, including proper feed management, water quality management, and disease control. Farmers can also explore value-addition opportunities such as processing, packaging, and marketing their products to increase their profitability.
Another way for small-scale farmers to improve their business is through the adoption of new technologies and innovative practices. For example, the use of solar-powered water pumps and aerators can help to reduce costs and improve production efficiency. Farmers can also explore the use of aquaponics, a system that combines fish farming with hydroponics, to maximize production and reduce waste.
In addition to these strategies, small-scale farmers can also benefit from participating in training and capacity-building programs offered by both government agencies and and private venture capital organizations. These programs can provide farmers with the skills and knowledge they need to improve their businesses and take advantage of the opportunities available to them in the aquaculture industry. By utilizing these strategies and taking advantage of the opportunities available to them, small-scale fish farmers in Zambia can contribute to the growth of the aquaculture industry and help to meet the growing demand for fish in the country.
Challenges and Recommendations
Despite the potential for growth in the aquaculture industry in Zambia, there are still several challenges that must be addressed to ensure its success. Some significant challenges facing small-scale farmers are:
- The lack of access to funding and resources; Many farmers lack the capital needed to invest in the necessary equipment, technology, and infrastructure required to start or expand their businesses. Additionally, the high cost of inputs such as fish feed, fertilizer, and chemicals can make it difficult for farmers to achieve profitability.
- The lack of technical expertise and knowledge among farmers. Many farmers lack the necessary training and education to implement best practices in fish farming, leading to low yields and poor-quality fish. The lack of access to markets and infrastructure also makes it difficult for farmers to sell their products and transport them to buyers.
To address these challenges, there is a need for increased investment in the aquaculture industry and targeted support for small-scale farmers. This includes providing access to funding and resources, such as equipment, technology, and inputs, at affordable rates. It is also essential to provide training and education to farmers on best practices in fish farming, including feed management, water quality management, and disease prevention.
Moreover, there is a need to develop market linkages and infrastructure to help farmers connect with buyers and transport their products to markets. This includes the establishment of processing facilities and cold storage facilities to help preserve the quality of produce and increase its shelf life.
Finally, impact and sustainable investment poured in to medium to small-scale fish farmers will not only contribute to wealth creation amongst our people, it will also add significantly to the whole aquatic and fisheries eco-systems and nutritional value chains that promote food security across board. It is possible to create a thriving industry that contributes to the economic growth and human development.
