Investing in aquaculture in Côte d'Ivoire

1. History and context of aquaculture in Côte d'Ivoire

Located along the Gulf of Guinea, Côte d'Ivoire covers an area of 322,462 km² and has a population of 29 million in 2021.
Côte d'Ivoire's position in the humid intertropical zone gives it several hydrographic advantages: 150,000 ha of lagoons, 350,000 ha of lakes and numerous shallow areas suitable for aquacultural operations (see Figure 1), as well as a rich aquatic wildlife. Thus, aquaculture constitutes a real national potential that deserves to be widely exploited.

Located along the Gulf of Guinea, Côte d'Ivoire covers an area of 322,462 km² and has a population of 29 million in 2021.

Côte d'Ivoire's position in the humid intertropical zone gives it several hydrographic advantages: 150,000 ha of lagoons, 350,000 ha of lakes and numerous shallow areas suitable for aquacultural operations (see Figure 1), as well as a rich aquatic wildlife. Thus, aquaculture[1] constitutes a real national potential that deserves to be widely exploited.

Figure 1: The water system of Côte d'Ivoire

Source: The Great Atlas of Côte d'Ivoire

The Ivorian economy, essentially based on agriculture, has chronic deficits regarding the availability of animal and halieutic[1] proteins, resulting in regular imports of meat from animal and fishery products.

[1] Aquaculture refers to the cultivation of aquatic organisms, including fish, shellfish and aquatic plants. Cultivation involves some form of human intervention to increase yields.

[2] Halieutic resources refer to aquatic resources exploited by man, they refer to the exploitation and management of resources from fishing and aquaculture

The first attempts to develop aquaculture in Côte d'Ivoire date back to 1955, when the colonial administration created a fish farming[1] section within the Water and Forestry Service. In 1958, a research center was created near Bouaké by the Tropical Forestry Technical Center (France). From 1960 onwards, the Ivorian administration itself became involved in the development of fish farming: fish farms in charge of supervision, state fish rearing stations and research centers were created.

The focus on aquaculture in Côte d'Ivoire started mainly in the 1990s with an annual production of 200 to 300 tons by the state farm of Jacque Ville, which later became private under the name Société Ivoirienne d'Aquaculture Lagunaire (SIAL). At that time, the overall production of private farms reached 30 to 50 tons per year (mainly catfish).

During that period, CFAF 3.69 billion were mobilized from partners (Belgian Cooperation, French Cooperation and the African Development Bank) to support a fish farming development strategy at the regional level.

Most of the regional projects have been implemented: i) Centre-West Fish Farming Project (PPCO 1992 to 1999), ii) Support Project for the Fish Farming Profession in Eastern Côte d'Ivoire (PAPPE 1996 to 2003), and iii) Integrated Rural Development Project for the Western Forest Region (BAD-OUEST 1992-2003).

However, the take-off of aquaculture in Côte d'Ivoire was slowed down in 2002 following the politico-military crisis.

Globally, the development of aquaculture in Côte d'Ivoire is strongly reliant on external financing in the framework of projects. Almost all major projects have been supported by foreign partners. Until now, Côte d'Ivoire's financial contribution has been residual. Indeed, the volume of public investment devoted to the sector has not exceeded an average of CFAF 16 billion per year, or less than 0.3% of the annual budget of Côte d'Ivoire.

Continental aquaculture in Côte d'Ivoire is still an essentially rural activity, of secondary importance and generally practiced on small farms, in small freshwater ponds of low productivity. There are several types of farms. These are either small water body or subsistence farms, or small-scale commercial farms. Generally speaking, it is mainly tilapia, jawfish and catfish farming.

In order to meet the challenge of developing the animal and fishery resources sector, the Ivorian government has defined new policies and strategies with the aim of reducing the country's dependence on external fishery products.

[1] Fish farming is a specialization of aquaculture, it refers to the breeding of fish in a natural environment or in artificial ponds, intended for consumption.

Table 1: Evolution of aquaculture production in Côte d'Ivoire (in tons)

Source: FAO Fishstat

Despite the progress obtained during the last seven (7) years, aquaculture represents only 10% of the national fisheries production. Aquaculture production (production from aquaculture) increased from 1,290 tons in 2007 to 3,394 tons in 2011, but has remained at a capped level of 4,500 tons since 2017.

2. Global Market

Of all the fishery products in world trade, fish is the most important, but other species such as seaweed and shellfish are equally important.

According to the Food and Agriculture Organization of the United Nations (FAO), in 2020, aquaculture will supply 60% of the world's freshwater fish, 40% of the world's mollusks, 30% of the world's shrimp and 5% of the world's saltwater fish.

Strong growth in aquaculture has allowed world fish production to reach record levels.

[1]* Official data obtained by FAO from available information sources

Table 2: Average annual production of fish by fishing and aquaculture in the world in million tons

* Aquatic mammals, crocodiles, alligators, caimans are excluded

Source: FAO [5]

World fish production has increased from 110 million tons in the 1990s to 177 million tons in 2020, which represents a 60% growth. This growth is mainly due to the boom in aquaculture production, which has increased from 21 million tons in the 1990s to 87 million tons in 2020, a growth of 300%.

In 2020, aquaculture represented 49.2% of the world fish production against 20% in 1990.

This world fishery production was mainly dominated by Asia, which accounted for 70% of the world production, followed by the countries of the Americas (12%), Europe (10%), Africa (7%) and Oceania (1%).

The main countries producing fish from aquaculture are China with 58% of the world production, Indonesia (12%), India (7%), Vietnam (4%), Bangladesh (2%) and Egypt, Norway, Chile which together represent 4% of the world production of aquaculture products.

All regions of the world, with the exception of Africa, recorded a continuous growth of their aquaculture productions in 2020. This growth was driven by the expansion of activities in Chile, China and Norway - the main producers in their respective regions. The two main African producing countries, Egypt (67.62% of African production) and Nigeria (11.12% of African production), experienced a decline of 1.2% and 9.6% respectively in 2020 compared to2019, while the rest of the continent recorded a growth of 14.5%.

Since 1961, the world annual growth rate of fish consumption has increased by 3% on average, for a population growth rate of 1.6%: fish consumption is increasing almost twice as fast as the world population growth.

According to the FAO, aquaculture has significant potential to feed a growing world population. According to projections, dietary trends should lead to a 15% increase in the consumption of food

[5] The 2022 Global Situation of Fisheries and Aquaculture

products of aquatic origin, i.e., an average consumption to be satisfied of 21.4 kg per capita in 2030 against an average of 9.9 kg in the 1960s and 20.2 kg in 2020.

3. Local market potential

Fish is the main source of animal protein consumed by Ivorians, with an average of 24 kg/year per person according to the Ministry of Animal Resources and Fisheries. The national fisheries production, amounting to 50,000 tons per year, combined with aquaculture (5,000 tons on average per year), is not sufficient to cover the country's rapidly growing needs.

Table 3: Evolution of imports of halieutic products* by Côte d'Ivoire in value and volume

* Fish and shellfish, mollusks and other aquatic invertebrates

Source: Customs of Côte d'Ivoire

Côte d'Ivoire's halieutic product needs amount to more than 700,000 tons and only 15% of these needs are met locally, the remaining 85% being met by increasingly important imports.

Indeed, imports in volume increased from 481,880 tons 2017 to 651,242 tons in 2021, a growth rate of 35%.

Imports of halieutic products amounted to CFAF 414 billion in 2021 against CFAF 266 billion in 2017, i.e., an average annual growth rate of 12% from 2017 to 2021. The market potential of Côte d'Ivoire is growing.

Despite the numerous assets and the hydrographic potential of Côte d'Ivoire, the share of aquaculture in the national halieutic production represents only 10%.

The quantity of halieutic products from fisheries is clearly decreasing, with an average decrease of 1% over the period 2017-2020 (FAO). Aquaculture represents the only way to meet the growing demand of Ivorian consumers for halieutic products.

4. Regulations and government measures

In Côte d'Ivoire, the Ministry of Animal and Halieutic Resources (MIRAH) is the institution in charge of the regulation, control and monitoring of fisheries and aquaculture activities.

In July 2016, the Ivorian National Assembly adopted Law No. 2016-554 of July 26, 2016 on fishing and aquaculture in order to regulate fishing and aquaculture activities.

This new law supplements the law n°086-478 of July 1, 1986, relating to fishing by adding the aquaculture component which was not taken into account. Regulations to implement the various articles of the law are still being drafted and adopted.

In addition, the Government has undertaken various initiatives in recent years to increase local aquaculture production.

The PREPICO Project (2016-2019), whose main objective was to contribute to the development of continental fish farming in Côte d'Ivoire through the improvement of fish production, led to the development of two documents: the "National Action Plan for the Development of Fish Farming" (PANDEP) and the "Technical Guidelines for Sustainable Fish Farming".
The TIVO project, launched in 2012 for a period of 5 years and renewed in July 2022 for the same period. The implementation of the project has resulted in the rehabilitation of at least 65% of the production structures of the Loka fish farm (Bouaké), the constitution of a quality tilapia gene pool, the permanent supply of quality veterinary products and industrial feeds for the fish brood stock and the production of improved tilapia seeds.
Phase II of the TIVO project aims to contribute to the upgrading of production infrastructure and support for genetic improvement, provide institutional support for research and development, and ensure the production of high-performance genetic material for private fish farmers, young people who have dropped out of school, and women traders and fish processors

The MIRAH has developed a new strategy for the development of the aquaculture sector named National Strategy for the Development of Aquaculture (SNDA) which is one of the 5 pillars of the National Policy for the Development of Livestock, Fisheries and Aquaculture (PONADEPA) 2022-2026, the objectives of which are the improvement of the productivity and competitiveness of the animal and halieutic sectors, of the governance of the sector and of the means of livelihood of the actors of the sector

In August 2022, the head of the Ivorian Government officially launched the Strategic Program for the Transformation of Aquaculture in Côte d'Ivoire (PSTACI) for a renewable period of 5 years. It comes from the SNDA and aims at a national production up to 70% of the consumption needs in halieutic products by 2030 through the acceleration of investments and pilot projects, the reinforcement of governmental rules and the increase of the production of fries for its first phase.

Government perspectives

The Ivorian Government in its roadmap 2023 announces the launch of the following development projects:

- The Aquaculture Production Diversification Project (PDPA): its objective is to improve the coverage of national needs in halieutic products through the establishment of an experimental and learning center to master the production of new marine aquaculture species and the training of 50 fisheries actors in marine aquaculture;
- the Project for the Development of Techniques for the Valuation of Halieutic Products: it will promote the consumption of halieutic products and improve nutrition through the rational and sustainable use of halieutic resources.

MIRAH also plans as part of the Project to Improve the Production of High-Performance Fish Farming Inputs (PRAPIP) to achieve the following results by 2023:

150,000 efficient brood stock will be acquired and made available to hatcheries;
1 local food manufacturing company will be supported with equipment (extruder).

5. Constraints

In Côte d'Ivoire, the obstacles to the practice of aquaculture are multiple. At all levels of the production process, aquaculturists face obstacles. These constraints are even greater when it comes to lagoon aquaculture, as it uses more elaborate methods and techniques than in ponds.

We can mention, as weaknesses existing in the sector:

- low availability of quality fry and quality fish feed;
- Insufficient technical skills and knowledge in the management of aquaculture areas, which can lead to high mortality in farmed fish and a lack of competitiveness of aquaculture fish;
- the weak structuring of the value chain in aquaculture;

6. Opportunities

The Ivorian aquaculture sector is faced with certain weaknesses that have so far hindered its development. However, Côte d'Ivoire has many assets and potential for the development of aquaculture.

We can mention, as opportunities existing in the sector:

- Côte d'Ivoire's hydrographic potential can enable it to produce more than 1 million tons of fish per year;
- a need for more productive and competitive aquaculture operations in order to cover the needs of the Ivorian population estimated at more than 700 000 tons of fish per year;
- a need for optimization of the value chain of the aquaculture products sector;
- a need for fish fry production units and quality fish feed;
- The existence of a Strategic Program for the Transformation of Aquaculture in Côte d'Ivoire (PSTACI) for the development of an aquaculture value chain;
- the growth trend in global consumption of halieutic products by 15% to reach an average of 21.4 kg per capita in 2030;
- the tax and customs exemptions granted by the investment code to the companies of the aquaculture sector.

7. SWOT analysis

8. Conclusion and recommendations

Despite a dense hydrographic network, capable of producing 1 million tons of fish per year, favorable climatic conditions and a young and abundant workforce, aquaculture in Côte d'Ivoire produces less than 1% of the fish consumed locally and represents only 10% of the national halieutic production.

Indeed, the emergence of this sector has so far been faced with several challenges, including the low availability of quality fish fry and feed, the low availability of technology and know-how in the development of aquaculture areas and the lack of optimal structuring of the value chain.

Thus, the consumption of halieutic products in Côte d'Ivoire depends mainly on imports, with about 651,000 tons of halieutic products imported in 2021, representing more than 400 billion CFA francs.

However, there are investment opportunities throughout the value chain of the sector, including production, processing, distribution, marketing of fish, food production, development of aquaculture space, etc.

In recent years, the Ivorian government has put in place several strategies and programs designed to accelerate the development of aquaculture and reduce the country's dependence on foreign fish products, including the Strategic Program for the Transformation of Aquaculture in Côte d'Ivoire (PSTACI), which has the major objective of increasing the annual production of Côte d'Ivoire to 500,000 tons of fish by 2030.

In conclusion, the aquaculture sector in Côte d'Ivoire presents many opportunities and potentialities but it is also confronted with many constraints and threats. Investors should be aware of these factors and take appropriate steps to manage the risks and opportunities that arise.

Our Score (in March 2023): 5.6/10