New report highlights fisheries as key driver for AfCFTA’s success in Africa’s blue economy

AFRICA – A recent report by UNDP Africa and the African Union Commission underscores the transformative potential of the fisheries industry in driving regional economic growth through the African Continental Free Trade Area (AfCFTA). 

Titled “What the Fishery Industry Can Teach Us about the AfCFTA’s Implementation in the Regional Blue Economy Value Chains”, the report delves into how Africa’s largely untapped marine resources can contribute to the continent’s sustainable development goals while boosting intra-African trade.

Africa’s coastline spans over 30,000 kilometres—almost double that of China, the world’s largest fish producer. However, Africa’s fisheries sector remains underdeveloped, leaving the continent dependent on imported fish to meet local demand. 

According to the Food and Agriculture Organization (FAO), fisheries contribute approximately US$24 billion annually to Africa’s economy and provide jobs for over 12 million people. 

Women represent nearly 60% of the workforce in fish processing, emphasising the sector’s potential to foster economic inclusion.

Despite this potential, Africa imports over US$6 billion in fishery products annually, predominantly from outside the continent. 

The report highlights the region’s challenges, such as unregulated fishing activities, infrastructure gaps, and limited access to finance, which collectively result in billions of dollars in lost revenue each year. 

Implementing the AfCFTA is seen as a significant opportunity to address these challenges and foster a self-sustaining fisheries sector that can meet Africa’s food security and economic goals.

Leveraging AfCFTA to enhance intra-Africa trade in fisheries

Launched in 2021, the AfCFTA aims to create a single market across the African Union’s 55 member states by reducing trade barriers and enhancing regional collaboration. 

For the fisheries sector, which depends on cross-border trade and cohesive regional policies, the AfCFTA could be a game-changer. 

The agreement’s framework seeks to remove tariffs and streamline regulations, making it easier for African countries to trade fishery products within the continent.

The report references the “Women and Youth Economic Empowerment in Fisheries” program, a recent initiative led by the AfCFTA Secretariat. 

This program aims to support micro, small, and medium enterprises (MSMEs), especially those led by women and youth, in expanding their operations within the fisheries sector. The initiative could generate up to 250,000 jobs and attract US$100 million in annual investment in the fisheries value chain.

Building regional value chains to drive growth

According to Komi Tsowou, UNDP’s Regional Adviser on the AfCFTA, developing Regional Value Chains (RVCs) in fisheries is essential for sustainable growth. 

By integrating fishery markets across the continent, the AfCFTA could help African island states and coastal nations access larger markets and stabilise their economies. 

Increased investment in cold storage, logistics, and digital technologies will also be critical to achieving these goals.

The report calls for enhanced private sector engagement and policy support to establish a cohesive fisheries infrastructure, allowing Africa’s marine resources to be utilised sustainably and efficiently. 

Actions to bolster the sector include expanding cold chain facilities and increasing technical assistance to meet Sanitary and Phytosanitary (SPS) standards, ensuring the safety and quality of fishery products.

The joint UNDP-AUC report concludes by underscoring that sustainable fisheries could bolster Africa’s blue economy, enhance food security, and provide extensive job opportunities. 

However, reaching these goals will require coordinated policy efforts, infrastructure investment, and a commitment from all stakeholders to support the AfCFTA’s implementation across the blue economy.

As the AfCFTA continues to evolve, Africa’s fisheries sector could become a cornerstone of intra-African trade and a driver of economic resilience in the region. 

The report’s findings were part of the discussions held during the Africa Blue Economy Week in July 2024, where experts explored how the blue economy can contribute to inclusive growth across the continent.

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