oceans economy: aquaculture · expansion - jacobsbaai sea products - abalone note: 4 projects moved...
TRANSCRIPT
OCEANS ECONOMY: AQUACULTURE
Belemane Semoli
Aquaculture Division
Department of Agriculture Forestry and Fisheries
South Africa - Norway Science Week
02 November 2016
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1. Background on Operation Phakisa
2. Aquaculture focus area of Operation Phakisa
3. Overview of Initiatives
4. Progress on Initiatives
5. Investment Opportunities
6. Registration of projects on Operation Phakisa
3
1. Background on Operation Phakisa
Operation Phakisa was first publicly mentioned in
the
State of the Nation Address response…
The first implementation of Operation Phakisa
will be led by the Department of Environmental
Affairs. It will focus on unlocking the
economic potential of South Africa’s oceans,
which are estimated to have the potential to
contribute up to one hundred and seventy
seven billion rand (R170b) to GDP by 2033
compared to fifty four billion rand (R54b) in
2010.
H.E. President J.G. Zuma, July 2014
…
BRINGING TOGETHER Government, State Owned Entities,
Industry, Labour, Civil Society and Academia to collaborate in
unlocking the economic potential of South Africa’s Oceans.
…DELIVERING on the aspirations of the
National Development Plan 2030
…UNLOCKING the economic potential
of South Africa’s Oceans
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Operation Phakisa: Oceans Economy
Focus Areas
▪ Marine Transport and Manufacturing 1
▪ Aquaculture 3
▪ Marine Protection Services and Ocean Governance 5
▪ Small Harbours Development
6 ▪ Coastal and Marine Tourism
▪ Offshore Oil and Gas Exploration 2
Focus Areas
Enablers Skills Development and Capacity Building
Research, Technology and Innovation
4
DEA, DPME, DOT, DPE, DTI, DMR, DOE, DAFF, DST, DHET, DPW, DRDLR, DOL,
DHA, NT, DSBD, DOD, EDD, DOW, NDT, DIRCO, NDTourism
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2. Aquaculture focus area of Operation Phakisa
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Globally, Aquaculture contributes to almost half of total supply
Global total fish production – wild catch and farmed
(reported)
0
20
40
60
80
100
120
140
160
2012 1990 2000 1970 1980
Aquaculture
Wild catch
Share of
Production
44 %
56 %
Mn tonnes
+0.9% p.a.
+7.2% p.a.
▪ Aquaculture production has shown strong growth of 7.2%
p.a. from 1970 to 2012.
▪ Of the 141 million tonnes of fish consumed, over 70 million
tonnes come from aquaculture which about 50%
▪ An additional 50 million tonnes of fish is required to feed the
world population by 2030 and this production will come
mainly from aquaculture
Factors influencing supply
Supplementing
wild capture
within
maximum
sustainable
yields
▪ The need to employ sustainable fishing
methods has become more important due to
dwindling stocks of certain species
▪ FAO has classified most wild fisheries as
either fully exploited or over exploited
▪ Increasing demand for fish products
Better
technologies
and production
methods
▪ New technologies and breeds e.g. RAS
system and GIFT strain for tilapia has
enabled better yields and lower long term
input costs
▪ Higher stocking capacity for shrimps which
allows for higher yield
▪ Investment in research and development
Food Security
▪ Governments have a responsibility to ensure
that everyone has enough to eat.
▪ Food needs to be available, accessible and
affordable through a resilient and reliable
supply system
▪ Fish is regarded as an essential part of a
healthy and nutritious diet
SOURCE: FAO State of World Fisheries and Aquaculture 2014; FishStatJ
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HEADLINES 2019: SA economy reaps the rewards of Operation Phakisa
“Jobs in Aquaculture sector seen
as quality jobs,
improving livelihoods
in rural communities….”
““…exciting momentum built in Operation
Phakisa evidenced by
Aquaculture’s inclusive
growth…”
“…experts estimate the revenue
contributed by Aquaculture
to South Africa’s economy to be as
much as R 3 Bn…”
“…The Aquaculture sector in
South Africa now employs
15,000 people in direct
and full time jobs….. “
“…to Aquaculture in South African has
shown strong growth in 5 years, with
production from 2014 up 5
fold to 20,000 tonnes…”
Abalone
Oyster
Finfish
Mussels
SOURCE: Aquaculture Lab
The Lab aspires to catalyse growth in the sector by scaling up the sector as
an initial step to sector development
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The Aquaculture sector in South Africa has incredible potential and yet
remains at a small-scale leading to many challenges for producers
SOURCE: Aquaculture Lab
Difficulty in accessing financing
Under-representation in the sector
Inefficient regulation and governance systems
Limited market footprint
Small-scale
Fragmented research and development
“…It’s taken 28 months to get a single permit to expand my farm…”
“…we should be supplying salmon and trout instead of importing 1000s of tonnes…”
“…our R&D should focus on meeting market demand in South Africa…”
Small pool of skills
“…PDIs only make up less than 10% of the sector…”
“... The way the banks price risk is crazy… few people really understand the nature of our business…”
“…I lost all my fish since there was no fish vet…”
Challenge in sourcing quality input s
Rural infrastructure underdeveloped
“…High set-up costs are a huge barrier to entry in this sector…”
“…We don’t have the economies of scale to get quality feed from suppliers…”
“…We don’t have the economies of scale to be commercially viable …
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3. Overview of Initiatives
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Regulations
Skills
Market
Funding
Solutions developed focuses on priority initiatives that support
the implementation of the of projects
Quick wins
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 Preferential
Procurement
Coordinated industry-wide
marketing efforts 7
Aquaculture Development Fund 5
6
SOURCE: Aquaculture Lab
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Overview of Initiatives
Phase 3: Implementation of
initiatives in 2 to 4 years
Phase 2: Implementation of
initiatives in 12 to 24 months Phase 1: Implementation of
initiatives in 6 to 12 months
Quick wins
▪ Implementation of 9 initial
projects 1a
Establishment of an Inter-
Departmental Authorisations
Committee
3
5 Establishment of an
Aquaculture Development
Fund
Coordination of industry-
wide marketing efforts 7
2 Legislative reform to
promote Aquaculture
development
▪ Implementation of 6 ready-
to-operate projects and
selection of additional
projects
1b
▪ Implementation of 12 ready-to-
operate projects and selection
of additional projects
1
4 Establishment of a globally
recognised monitoring and
certification system
6 Capacity building and skills
development
6 Capacity building and skills
development
8 Preferential Procurement
of Aquaculture products
Initial short-term targets
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4. Progress on Initiatives
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Progress on Initiatives
Implementation of initiative 1
▪ Implementation of projects 1a
Quick wins
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Really Useful Investment Aqua Food
Blue Sapphire Pearls Southern Atlantic sea farms
Imbaza Mussels West Coast Oyster Growers
Hermanus Salmon Requa Mussels
African Olive Trading Chapmans Mussels
Oystercatcher Oysters Vaal fisheries Tilapia
Location and Species of 32 Aquaculture Projects
Inland Provinces
Phase 1 Phase 2 Phase 3 Coastal provinces
1
Western Cape
Eastern Cape
Kwazulu
Natal Free State
Northern Cape
North West
Mpumalanga
Limpopo
ELIDZ
Amatikulu
Paternoster Saldanha
Hamburg
Ventersdorp
Overberg
Hondeklip Bay
Algoa3
Doring Bay
Richard’s Bay
Gauteng
12 New Projects
Original 24 Projects
Hatchery expansion- Paternoster- Oyster
Expansion- Hamburg cluster- Oyster
Expansion- ELIDZ Oceanwise- Kob
Expansion - Roman Bay – Abalone
Expansion - Abagold
New - Amatikulu - Kob
New- Hamburg cluster - Kob
Expansion - DST Abalone Hatchery
New- Saldanha Molapong Cages - Trout and Salmon
Expansion - HIK Abalone
Expansion - Amatikulu - Ornamentals
New- Wild coast abalone ranching cluster - abalone
Expansion - Doring Bay Abalone - Abalone
Expansion- Saldanha Blue Ocean Mussels - Mussel
Expansion- Saldanha Bay Oyster Company - Oyster
New- Richards Bay Sea Cage Farming - Dusky Kob
New- Diamond Coast Abalone Ranching - Abalone
Expansion - Wild Coast Abalone - Abalone
Expansion - Marine Growers - Abalone
Expansion - Jacobsbaai Sea Products - Abalone
Note: 4 Projects moved to business opportunities
Ventersdorp catfish Algoa Bay Yellowtail
Adz Vantersdorp Southern Atlantic
SMME’s
(12+)
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Saldanha Bay Molapong Trout and Salmon
PROJECT PROGRESS
• For the first time in SA, salmon has been
grown to market size
• First experiment in SA to grow trout in sea
water
• 18,000 fish in 2 cages which are planned to
grow to 2-3 kg each by next year
• Underway with commercial application to
be followed by market research of the final
product.
Current operations
Grown out abalone
James with
3kg ocean
trout
ocean trout fillet Transfer of the trout
fingerlings to the
grow-out cages in
Saldanha
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Implementation of initiative 2
2 Legislative reform to
promote Aquaculture
development
Quick wins Progress on Initiatives
Environmental Impact Assessment (EIA)
– Basic assessment required (2 years to
8 months)
Alien Invasive Species (AIS) regulations
published for oyster and mussels (green
zones)
Strategic Environmental Assessments –
project has commenced
General authorisation for aquaculture
coastal effluent in process, criteria being
refined.
Aquaculture Bill – developed and under
going stakeholder engagement
To promote the development
of an equitable, diverse,
viable and competitive
aquaculture sector; to create
a harmonised enabling
regulatory environment
within a framework of
sustainable development and facilitate investment
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Progress on Initiatives
Implementation of initiative 3
Establishment of an Inter-
Departmental Authorisations
Committee
3
Quick wins
Interdepartmental Authorisations Committee
WG established on the 8th of September 2015
Depts represented at the meeting: DAFF,
DPW, DEA, DWS, DRDLR, DPME and
DPE/TNPA
Progressive engagement with TNPA and
DPW established to unblock issues access to
land and sea space
Detailed analysis of business process being
undertaken. This will be followed by
recommendations of streamlined business
processes.
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Implementation of initiative 4
Quick wins Progress on Initiatives
4 Establishment of a globally
recognised monitoring and
certification system
NRCS (National Regulator for
Compulsory Specifications) will
undertake sampling - MOU in place
between DAFF/NRCS
The SANS 2879 (Live and chilled
raw mussels & oysters) standard
was published on 12th of April
2016
Shellfish Monitoring and Control
Programme implemented.
Finfish Monitoring and Control
Programme to be implemented
21
Progress on Initiatives
Implementation of initiative 5
5 Establishment of an
Aquaculture Development
Fund
• Working group established
• Next step is to sign MoC
• 40 institutions identified and 26 engaged on a one-on-
one basis
• International investment missions undertaken
• Applications currently assessed through working
group
• GTAC is assessing model and mechanism for
Aquaculture Development Fund
• Inclusion of the Aquaculture Development Fund in the
draft Aquaculture Development Bill
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Progress on Initiatives
Implementation of initiative 5
5 Establishment of an
Aquaculture Development
Fund
• Available funding towards aquaculture include:
• Debt or loan funding (e.g. Land Bank, Standard Bank)
• Equity funding (e.g. AgriBEE)
• Government grants (e.g. CASP)
• Government incentives (e.g. ADEP)
• Feasibility studies conducted on Marine Finfish,
Oyster and Mussels Other individual aquaculture
species feasibility studies still to be undertaken
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ESTABLISHMENT OF THE AQUACULTURE DEVELOPMENT FUND
Funding only required
for new projects
Where ADF will operate
ADF will
receive
financing
requests
from
projects and
disburse
funds to
projects via
identified
DFI
The Aquaculture sector faces difficulty in accessing finance as the sector is small and not well
understood by financing institutions.
ADF aims to fast-track growth, while meeting transformation objectives
▪ Funding pool to assist end-to-end Aquaculture projects
▪ Coordinates funding from various government departments and DFIs through an MoC
▪ Initial proposal for ADF to be managed by Land Bank/DFI
▪ Key focus of ADF to drive transformation / inclusivity by providing new entrants with
access to funding in pre-production phase
Phase 2 Phase 3 Phase 1 Phase 4 Project
lifecycle
ADF involvement and leadership
▪ Apply for permits,
approvals etc..
▪ Business plans
▪ Develop concept,
consult technical
advisors
▪ Acquire and set-
up primary and
supporting
infrastructure
▪ Begin production Description
of support
provided
The
“Business as
usual”
support/
funders
▪ DST/the dti
▪ NAMC
▪ SMME
department
▪ Seda
▪ The dti
▪ NEF
▪ IDC/
▪ NYDA
▪ Private investors
▪ other
▪ DAFF
▪ the dti
SOURCE: Aquaculture Lab
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Implementation of initiative 6
Progress on Initiatives
6 Capacity building for
support services
Aquaculture Skills Working Group operational
SAIMI in collaboration with DAFF and DHET, will
shortly do a skills audit and needs analysis of
the sector.
DAFF has met with Sterling University to
discuss training of Vets and aquaculturist
South Africa-China training centre
Collaboration with Norway and France explored
25
Progress on Initiatives
Implementation of initiative 7
Coordination of industry-
wide marketing efforts 7
Quick wins
Received interest from Iran to supply 500 tons/month of tilapia.
Taiwan has also expressed interest to source oysters from SA.
Engaged various industry bodies regarding the establishment of
AquaSA (statutory body under the Marketing of Agricultural
Products Act
Market access & research
Market & product development
Consumer and public awareness
26
Implementation of initiative 8
Quick wins Progress on Initiatives
8 Preferential Procurement
of Aquaculture products
Background Research has been conducted
DAFF and the dti in discussion on procurement of fish
products by schools, hospitals, corrections services etc.
Free State Economic Development Agency seeks to
source fish from aquaculturist for school feeding
schemes in the Free State.
Desktop research on preferential procurement
conducted in respect of aquaculture projects and
products.
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5. Investment Opportunities
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Aquaculture Development Zones
• An area or site either on land or at sea/water space set aside exclusively for aquaculture development
• Aquaculture Development Zone (ADZ) may have bulk infrastructure(reservoir, water pump) to attract
investors
• Minimising the cost of obtaining Environmental Impact Assessments authorisation due to the economies
of scale
• Minimising the costs of infrastructure development (e.g. access roads, electricity, water intake and
discharge)
• Easily coordinated support systems such as Extension Services, Veterinary Services, Hatcheries, etc.
• Coordinated marketing
What is An Aquaculture Development Zone?
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Location & Size
• Situated approximately 20km east of Port
Elizabeth
• 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 Industrial
Development 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
Eastern Cape:
Progress
• Feasibility study conducted.
• Process for an Environmental Impact
Assessment is initiated.
Challenges
• Possible opposition to the Environmental
Impact Assessment
31
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
Eastern Cape:
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.
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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
Eastern Cape:
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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
Eastern Cape :
38
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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. The BID
has been advertised.
• Department of Agriculture, Forestry &
Fisheries, KwaZulu- Natal Wildlife & Trade
Investment KwaZulu- Natal started
engaging potential investors (one new
investor for prawn farming)
Amatikulu Aquaculture Development Zone
KwaZulu Natal
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Richard’s Bay
• Potential for 600 tons production
• Prioritised through Operation Phakisa to receive DST
funding
• Deployment of first cages (four)
• Transfer of 25 000 fingerlings
• Rigorous environmental monitoring
PROJECT PROGRESS
Top view of sea cage
Fingerlings
Tsepo on his workboat
“Lucky Too”
42
Location & Size
• Saldanha Bay is situated on the west
coast of South Africa, approximately
100km north of Cape Town
Targeted Species
• Mussels
• Oysters
• Finfish (Salmon/trout)
Current Status
• 10 aquaculture farms in operation in
Saldanha Bay
: Saldanha Bay Aquaculture Development Zone
Western Cape Province:
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
43
44
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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
Vanderkloof Trout Aquaculture Development Zone
Northern Cape Province:
Progress
• Feasibility study complete
• Environmental Impact Assessment
Authorisation to be obtained
• Commencing trout pilot project
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6. Registration of projects on Operation Phakisa
49
Operation Phakisa Aquaculture projects submission process (1/2)
CONCEPT DOCUMENT
• species, location, ownership
structure including
transformation , business
model, technology,
production output, markets,
source of inputs (seed, feed
etc..), required resources,
availability/accessibility of
technical expertise,
environmental parameters
(temp, terrain etc..) possible
risks and mitigation
DAFF TECHNICAL
EVALUATION
(ATS and Delivery
UNIT)
SITE VISIT
DAFF Aquaculture
Technical Services
and Delivery Unit
conducts site visit
and assess the
proposal
TECHNICAL
REPORT
DAFF provides a
technical report and
recommendations
3FT PLAN, KPI and
BUDGET
If the concept is viable
from an environmental,
economic and technical
point of view, the DAFF
requests the proponent
to develop a detailed 3
feet plan with budget and
indicator
The DAFF forwards
the application to the
Funding Committee
(FC) and AIC
Not
viable/complete
liaise with owner
The FC and AIC evaluates the
proposal and an in-principle
decision is made on the funding
mechanisms as outlined in
ADF, the AIC will provide an in-
principle decision on required
licenses, land/water allocation
where necessary (2 weeks)
Continued on following slide
Inclusion of
project
Operational
50
Operation Phakisa Aquaculture projects submission process (2/2)
The FC and
AIC provides
feedback to the
proponent
A feasibility study (environment, economics &
technical) is conducted with funds from ADF (this
is applicable to new projects). For expansion
projects a technical due diligence will be
conducted. The feasibility study is conducted by
a panel of experts that will be appointed as part
of Operation Phakisa, their appointment will be
for 5 years with a service level agreement
If the project is
feasible,
feedback is
provided to the
AIC and FC for
final approval
An EIA is
conducted
(where
applicable)
If the project is on state
property the lease for land
or water is signed
between the state and the
project owner
Funds released as
per agreed
milestones and
payment schedule
Monitoring and
evaluation team
track progress
Continued from previous page
2 weeks 8 months
2 weeks
4 weeks
Escalation
51
The approach to project selection was guided by 3 principles, and 4
evaluation criteria
Evaluation Criteria
▪ Geographical diversity of Aquaculture
activity
– Participation by all coastal
provinces
– Freshwater species evaluated to
include inland provinces
▪ Transformation
– All considered projects should
agree to strive towards the targets
set forward in the Agri-BEE
Charter
▪ Sustainable growth through balancing
new projects and expansion projects
1. Market attractiveness of species
2. Production readiness of project (time
to stock fish for commercial
production)
3. Planned scale of project
4. Availability of funding for project
2 dedicated
commerci
al
hatcheries
22 production
facilities1 Principles
Market
attractive-
ness of
species
▪ Projects deemed more
commercially viable if
they focused on a
species with high
demand in the market
(local / international)
Production
readiness
▪ Projects that are closer to
production would allow
the sector to meet its 5-
year growth aspiration
Availability
of funding
▪ Projects deemed more
commercially viable if
they can show evidence
of committed investors
Planned
scale
▪ Projects that maximise
economies of scale
would contribute
significantly to lab
aspiration of 20,000
tonnes by 2019
1 Some production facilities include hatchery, processing plants as well Abalone Ranching operations at different locations
52
• The Department of Agriculture, Forestry and Fisheries hereby invite potential and
new aquaculture project owners to register their projects to become part of
Operation Phakisa: Unlocking the Economic Potential of South Africa’s Oceans.
• Projects may be submitted any time however evaluations for inclusion will be
conducted on a quarterly basis. For evaluation criteria please refer to the
Aquaculture Lab report on the link below.
• Interested parties must refer to the New Projects folder available on the
Operation Phakisa website:
www.operationphakisa.gov.za/operations/oel/aquaculture/
• All applications and enquiries can be forwarded to:
How to Register New and Potential Aquaculture Projects
New Aquaculture Projects
53
Thank you