The article is transferred from the 35 bucket WeChat public account Author: Han Ying
With Africa's population growing and the demand for fish consumption on the rise, the aquaculture industry presents great potential and business opportunities on the continent. Aqua-Spark, an aquaculture investment company based in the Netherlands, recently launched a dedicated African fund to invest across the aquaculture value chain. It believed that there was great potential and opportunity for the future development of the aquaculture industry in Africa.
Fadoua Boudiba is the Head of Africa at Aqua-Spark. In a recent interview with Jaco Maritz, she pointed out that although Africa has abundant natural resources to support local fisheries, about 40 percent of fish consumption is currently dependent on imports. Aqua-Spark is taking a holistic look at the aquaculture value chain across the continent and looking for investment opportunities to drive the growth of the sector.
图为：Aqua-Spark的非洲负责人Fadoua Boudiba 来源：How we made it in Africa
Diversification opportunities: tilapia and catfish farming and new species development
According to statistics, Africa's population is expected to increase from about 1.5 billion to about 2.5 billion by 2050, and the demand for fish will greatly exceed today's levels. Consumption is expected to increase from the current annual level of about 10 million tonnes to 16 million to 29 million tonnes. Overfishing limits the potential to increase wild catches and highlights the urgent need to expand fish farming production. According to Boudiba, Aqua-Spark is an investment fund that not only focuses on traditional fish farming, but also explores sustainable business opportunities at all stages of the entire aquaculture value chain.
Boudiba mentioned that when looking for investment and development opportunities, Aqua-Spark does not limit itself to the aquaculture of a single fish, but focuses on the diversification of the entire aquaculture sector.
But in their 2021 study, they highlighted tilapia as a key species to feed Africa's fish supply. Although many tilapia species are native to sub-Saharan Africa, production in the region pales in comparison to leading global countries such as Brazil, China, and Egypt. Aqua-Spark estimates that sub-Saharan Africa produces about 125,000-150,000 tonnes of tilapia annually. Aqua-Spark said tilapia farms and hatcheries account for about 40% of the total investment needs and 50% of the investment opportunity in the region's investment plans.
In addition to tilapia, catfish also has a broad space for development. According to Aqua-Spark, most consumers in other sub-Saharan African countries are not very knowledgeable about pangasius, and in fact catfish can greatly contribute to the development of aquaculture in sub-Saharan Africa. In this region, pangasius production is mainly concentrated in Nigeria, where production is comparable to the total production of sub-Saharan tilapia.
In addition, Aqua-Spark also noted the development value of seaweed, sea cucumber and shrimp farming, as well as potential areas such as the application of alternative fish feed ingredients such as the black soldier fly, the construction of cold chain logistics and distribution systems, and the development of online B2B and B2C markets for fish and agricultural inputs.
Investment strategy: digitalization in mature markets and integration of the whole chain of development markets
In assessing the African countries with the most prospects for aquaculture investment, Boudiba noted that East Africa, particularly Kenya, already has more advanced farming technologies and many successful cases. At the same time, she also highlighted Nigeria and Ghana as promising markets. Despite this, Kenya still faces a shortage of about 300,000 tonnes of fish per year, while Nigeria has a shortfall of more than 500,000 tonnes. Aqua-Spark is also actively looking for investment opportunities in French-speaking Africa.
Boudiba further said that in places with a high level of market maturity such as Kenya, digital trading platform type business models tend to flourish, while in less developed markets such as Mozambique, companies tend to adopt an integrated investment strategy across the entire chain, from incubation and feed production to retail distribution.
来源：How we made it in Africa
Aqua-Spark has invested in four aquaculture-related companies in Africa:
Chicoa Fish Farm (Mozambique): Aqua-Spark's first investment in Africa is the Chicoa Fish Farm in Mozambique, which produces tilapia mainly in Lake Cahora Bassa. The farm's cages are located in deep water close to the coast, making them cost-effective to operate, and the lack of infrastructure has been a major challenge for the company. Chicoa aims to become one of the largest tilapia producers in the region, with the goal of producing 20,000 tonnes of tilapia in the coming years, of which 10,000 tonnes will come from its own operations and another 10,000 tonnes from contract small-scale farmers.
Indian Ocean Trepang (Madagascar): Indian Ocean Trepang (IOT) is based in Madagascar and specializes in the cultivation of sand carp or Holothuria scabra (a type of sea cucumber). This delicacy is especially appreciated by the global Chinese community. The Company's key markets include China, Singapore, South Korea, North America and Europe. IOT operates a solar-powered sea cucumber hatchery throughout the year. After about 18 months of growth, adult sea cucumbers are harvested and processed into Trepang (dried form of sea cucumbers). Sea cucumbers are sold in the dry market, but they can also be purchased at modern trade outlets for hydration, freezing and ready-to-eat. In addition, part of the production of IoT is subcontracted to local fishermen, providing them with access to global markets.
Lake Harvest (Southern and Eastern Africa): Lake Harvest farms tilapia in floating cages located on the shores of Lake Kariba in Zimbabwe and Zambia, as well as Lake Victoria in Uganda. The company invested early on in processing facilities and distribution networks to meet market demand throughout Southern and Eastern Africa.
Aquarech (Kenya): Late last year, Aqua-Spark led Aquarech's $1.7 million investment, with other investors including Acumen, Katapult and Mercy Corps Ventures. Aquarech is a mobile app platform that enables manufacturers, farmers, and buyers to trade, buy, and sell quality fish feed and fingerlings (juveniles ready for rearing). The company also supports small-scale fish farmers by providing training on the best fishing practices and financing options for feed purchases.
Boudiba stresses that the quality of farmed fish is largely dependent on the quality of the feed. Although there are some government schemes to subsidize fish feed in Kenya, the effectiveness of these subsidies can be greatly diminished without effective practical guidance to farmers. Aqua-Spark favors technology-based companies like Aquarech because they are effective at collecting industry data. "Having accurate, reliable data is one of the most difficult parts of the aquaculture industry. It's a very new market, so it's very valuable information. Boudiba said.