Despite the challenges they face, a number of African countries are strengthening their competitiveness on world fisheries markets, with strong commercial advantages for exporting highly sought-after aquatic products.
This should boost their export potential to regional and global markets.
According to recent data from the United Nations Conference on Trade and Development (UNCTAD) report entitled ‘South-South trade in the marine fisheries and aquaculture sectors’, five African countries stand out for their high indices of revealed comparative advantage (RCA) for various seafood products.
They are Mozambique, Tanzania, Egypt, Morocco and Nigeria.
The RCA Index is the economic indicator that identifies a country’s relative export strengths for a given product, which can guide investment and trade decisions. A high RCA for a product means that the country in question has a competitive export advantage over other countries.
This index is all the more interesting given that the UNCTAD report examines the growing importance of South-South trade in fish products.
The report notes that developing countries account for a growing share ofworld fish exports, with a significant increase in trade between them.
Asia dominates this regional trade, in particular China as a major exporter and importer. However, other regions such as Africa are also experiencing an increase in intra-regional trade.
The benefits of South-South trade include improved access to markets and products for developing countries, stimulating local production. But challenges remain, such as lack of infrastructure, non-tariff barriers and over-exploitation of resources.
The report recommends strengthening regional cooperation, sustainable fisheries management and access for small-scale producers to these emerging markets.
Mozambique: lobsters and crustaceans
In descending order, the report notes that Mozambique has the highest RCA on the continent at 612 for lobsters and other marine crustaceans. With a relatively high RCA, Mozambique seems to benefit from major advantages for the production and export of these top-of-the-range products.
Its long coastline and rich waters are ideal for lobster fishing. The sector remains highly competitive at global level. The industry is mainly export-oriented, and the country is committed to sustainable management with management plans for each fishery.
Tanzania: profitable fish waste
Tanzania has a comparative advantage of 229 in fish waste such as heads and tails. This is a resource that is often under-utilised, but which represents a potential export diversification opportunity for this coastal country.
Although less valued, this product generates substantial revenue for the East African country. Local fishing provides large volumes of exploitable waste. This suggests the need for an integrated supply chain that adds value to all catches.
Egypt: fresh and chilled toothfish
Egypt stands out with an ROA of 163 for fresh or chilled toothfish, a fish of high commercial value, also known as Australian toothfish. The North African country has favourable conditions (access to the sea, climate, etc.) for fishing and rapidly exporting this highly sought-after fresh product.
Its high RCA indicates that it is highly competitive in this niche.
Morocco: canned sardines, a historic niche
Morocco dominates the market for processed sardines, with an RCA of 118.
A traditional speciality, canned sardines are a major asset for Moroccan exports. Historical know-how and dedicated infrastructures explain this very strong comparative advantage.
Nigeria: the advantage of various crustaceans
Finally, Nigeria has a 103 advantage in shellfish, highlighting the potential of small-scale fishing in the Gulf of Guinea, a sector that is socially crucial but threatened by over-exploitation. Nigeria has specialised in the export of certain categories of shellfish, benefiting from natural resources and appropriate production capacity.
Overfishing, pollution, informal sector…
Beyond the statistics, these countries face major challenges: overfishing, marine pollution, the impact of climate change and a large informal sector that is difficult to regulate. The development of sustainable aquaculture could be an avenue worth exploring.
Added to this is the fact that diversifying export markets, moving upmarket and adding local value to ocean products are essential levers.
South-South cooperation mechanisms such as the Global System of Trade Preferences Among Developing Countries (GSTP) can contribute to this by facilitating technology transfers and exchanges of best practice.
On the regional trade front, several agreements exist between African countries and other developing countries.
The Global System of Trade Preferences (GSTP) already allows preferential tariffs on fisheries products between its African participants and other emerging economies. Other regional agreements such as CEMAC, SADC and the Common Market for Eastern and Southern Africa (COMESA) also facilitate trade in fish products.
Tariff and non-tariff barriers persist
According to UNCTAD, South-South trade offers opportunities to promote exports from these countries and develop more resilient and inclusive regional value chains.
However, certain tariff and non-tariff barriers persist. MFN (Most Favoured Nation) tariffs remain high for processed products, at up to 17.9%. The prevalence of regulatory and technical non-tariff measures (NTMs) in the sector is also a major brake on South-South trade.
To remove these obstacles and take advantage of the complementarities between countries, enhanced technical cooperation is recommended.
The transfer of technology in sustainable aquaculture, product processing, health control and certification could help these economies to add value to their production and access new regional markets. Targeted investment in logistics infrastructure and the cold chain are also crucial.
By developing these commercial capabilities, African countries will be better able to meet the growing demand from emerging markets in Asia and Latin America, where per capita consumption of aquatic products is set to rise sharply between now and 2032, driven by the growth of an urbanised middle class.
‘To guarantee the quality and traceability of their exports, compliance with emerging health, food safety and sustainable certification regulations in importing countries will be essential. Regionally harmonised standards would greatly facilitate such regulatory compliance’, the UNCTAD report points out.
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