On November 5th 2024, the United States and Somalia agreed for Washington to cancel over $1 billion in debt owed by Somalia. This is the most significant single component of a total of $4.5 billion in debt owed to multiple countries that was forgiven under a deal with the International Monetary Fund and World Bank in December 2023.
The recent achievement by Somalia of reaching the heavily indebted poor countries (HIPC) completion point reflects the country’s turning point in its growth following this milestone. After 33 years, this will open new perspectives for Somalia as almost 95% of international debt is written off (The World Bank, 2023). The conversation is now more than ever on revenue mobilisation, and fisheries can significantly contribute much-needed revenue to the nation’s socioeconomic growth. As Somalia has Africa’s longest coast with abundant fishing resources and a lack of proper infrastructure and value chain, the question is how the country can exploit and develop the sector and what good practices the government needs to follow. This essay delves into the problems that Somalia’s fishery industry faces and how the industry can be transformed into a pillar that can bring stable improvement.
The Untapped Potential of Somalia’s Fisheries
Somalia’s fisheries industry is an untapped resource that can be used to generate a sound economic basis for the country. The country has a 3,333 km-long shoreline along the Indian Ocean and Red Sea. This makes Somalia the country with the longest shoreline in Africa. The inshore waters and EEZ are located within an upwelling ecosystem, the Indian Ocean, which is rich in a wide variety of fish. This rich fishery can sustain a stable fish marketing system globally (FAO, 2014). Despite this advantage of wealthy resources, this industry has been lagging for a long time. Many factors have contributed to this, such as inadequate fishery investment, political unrest, and armed conflicts. These problems have hindered fisheries development for many decades. If this natural resource is tapped, it may fully remodel the economic status of Somalia (SATG, 2023). The types of fish in Somalia’s marine waters, like tuna, mackerel, and sardines, are highly sought after in international markets. There is significant domestic fish consumption in Somalia, but the supply could be more stable due to insufficient fishing efforts, particularly in the deep waters. Therefore, overcoming these complex issues, which have hindered the development of the fisheries sector over many years, is vital to the country’s economic awakening.
Somalia needs an unintegrated value chain and infrastructure. It needs modern storage capabilities, good processing facilities, and reliable transport networks for the fish products. These problems have contributed to the country’s need to harvest fish efficiently, handling, processing, storing, and transporting it to the markets (SATG, 2023). The unintegrated value chains negatively affect the sector’s contribution to GDP. The fishing industry contributes ten per cent of Somalia’s GDP, and the fishermen ultimately lose money (Trans-Africa Consultancy Services for African Development Solutions, 2015). Additionally, there have been obstacles to sustainable fishing practices and limited fishery investment due to historical political instability. These issues cause the potential of the fishing industry to remain untapped and negatively affect the livelihoods of local fishermen and the Somali economy (Masiero et al., 2011).
Illegal, unreported, and unregulated (IUU) fishing and related activities in Somalia’s marine waters threaten Somalia’s economic development. According to studies, IUU fishing annually causes over US$300 million in losses annually to Somalia. Foreign fishing vessels are also sometimes involved in dynamite fishing, which harms the country’s marine resources, interferes with local fishermen’s jobs, and takes money away from Somalia’s economic growth (Christine, Par. 1, 2023). Somali pirates have taken advantage of this notion through their portrayal as protectors of Somali seas against foreign exploiters. However, in reality, things are far more complex. Local Somali agents typically enable foreign illicit fishing activities, usually working with government or quasi-governmental entities. These agents charge fees for fishing licenses, flag registrations, forged export documents, and even armed aboard security detachments (Global Initiative, Par. 3, 2021).
Developing Somalia’s Fisheries Sector
Somalia’s untapped fisheries potential can contribute significantly to sustainable economic development. Through collaboration, Somalia can be open to strategic public-private investments in its infrastructure. Such partnerships can result in cutting-edge fish processing centres, proper storage facilities, and effective transport by enhancing roads and adequate market access for Somali fish (NAP et al.. 10, 2023). Somalia must also strengthen its political environment and maintain investor-friendly conditions to draw overseas investors, ultimately securing the sector’s economic destiny (Masiero et al., Pg. 41, 2011). There are many reasons why it is worth looking at the different ways to exploit the fisheries sector sustainably. Some of them are developing an industry that is stable and sustainable enough to serve the local communities in Somalia through job creation and ensuring food security. Fishing has the potential to become a revival engine for economic and social status after the country’s financial constraints (Usaid.gov, Par. 2, 2020). If handled properly, the sector can enhance the country’s finances and provide ordinary citizens with a voice that can build their future.
Promoting environmentally sustainable fishing methods is essential to the long-term wellness of marine ecosystems. This can be achieved by enforcing regulations on catch restrictions through gear control and fishing quota allocations. The measurements should be science-based, hence preserving the fragile equilibrium of marine biodiversity. These measures provide conditions for ensuring that the fisheries are sustainable by limiting people from over-exploiting the areas of specific commercial resources (Dev, Par. 4, 2018). There should also be programs to teach fishermen better fishing methods to maximise their catches. This will enhance fishing capacity, a fundamental pillar of the fishery industry’s development (FAO.org, 2016). These efforts should include sea conservation, today’s ethical fishing techniques, and sustainable fishing. At the same time, there is a need to implement programs designed to improve fish processing, marketing skills and quality control systems in order to bolster value throughout the entire series of stages in which any economic advantages may be reaped.
A healthy fisheries industry requires firm regulations and effective administration. If given sufficient human resource capacity and facilities, regulatory agencies can effectively enforce rules, monitor fishing operations, and bring offenders to justice. This means the interests and ideas of those directly involved in fisheries must be factored into decision-making. This will give them a sense of responsibility and belonging. Technology is the key to improving efficiency in the industry. However, through satellite surveillance and data analysis, authorities can watch fishing activity as it happens, enforce regulations, and deal with problems immediately (Cashion et al., Par. 5, 2018). Furthermore, Somalia must promote public-private partnerships to attract the investment necessary for long-term development. Private sector investment, knowledge, and technology can help speed up the growth of a solid, versatile fisheries section.
In response to IUU fishing and other associated crimes, Somalia’s Minister of Fisheries and Blue Economy signed a law that looked at licensing, supervision, and security to the Somali Exclusive Economic Zone (EEZ) and the ships that are working beyond Somali’s waters. This law outlines the steps to provide licenses to foreign vessels, joint ventures, and those owned by Somali citizens. The President also pointed out that illegal fishing in Somali waters has persisted for three decades and that new laws seek to address the problem (Somali Investor Magazine, 2023). With continued adherence to this law, illegal fishing can be combatted, and Somalia will stop stealing its natural resources.
Economic Impact and Revenue Projection
The fisheries industry can develop beyond exporting raw fish only. Processed fish products, oil, and processing fish meal all enhance economic returns and open new markets. Somalia recognises that climate change impacts marine ecosystems. As fish migrate, the sea temperature changes from year to year, and ocean conditions change with climate. Preparing for resilience against these shocks should involve all players in the fisheries sector.
Improvements in Somalia’s fishing industry have the potential to have far-reaching monetary effects and economic growth, including the generation of new jobs and increased export revenues. The most evident and noticeable change is anticipated to occur in the area of employment as the industry goes through its transition. New employment possibilities are expected to arise due to the growth of processing, transportation, and other businesses and the expansion of fishing activities (Usaid.gov, 2020). Aside from improving the lives of those working in the industry directly, this increase in employment has a multiplicative impact on the economy.
At the same time, Somalia’s fisheries have a solid economic future. Exporting acceptable quality fish items is a way to enter the world market. In addition, the influx of foreign capital will strengthen its economic robustness as the industry develops into a stable exporter. The fishing industry has a realistic strategic direction toward becoming a significant revenue source, independent from other funding organisations. The fishing industry can be an example of broadening revenues beyond traditional sources. The precise income contribution, however, can only be estimated with a very detailed understanding of the fishing industry’s stepwise process. Building infrastructure, raising capacity, and building foreign markets take time. The national revenue goals must be within the bounds of reasonableness, and the country must also have patience. In line with the gradual nature of sustainable growth, an optimistic but realistic attitude is called for the sector to bring hundreds of millions of revenues to Somalia. The economic effects, though, go beyond mere statistics.
Morocco has almost the same shoreline, contributes more significantly to GDP than Somalia, and employs more people. Its fisheries sector is well developed with the proper infrastructure and modern technology. From 2010 to 2018, Morocco increased its production volumes by 20%, hitting 1.4m tonnes. The fishing industry also has approximately 98,000 direct employees. This reflects also on the sector’s value. It rose from 698 million dollars to 1.2 billion dollars, and seafood and fish exports reached 2.4 billion dollars in 2018 (Oxford Business Group, Pg. 172, 2020). Somalia also can outgrow the untapped capabilities if the right strategies are implemented. They include opportunities for community-level social and economic empowerment. The bases of inclusive progress are accountable management, community participation, and monetary empowerment. Finally, after extricating itself from its debt, the fishing enterprise may be Somalia’s economic saviour.
In summary, with Somalia reaching the heavily indebted developing countries (HIPC) completion point, it can now concentrate on reviving its economy through strategically investing in the fishing sector. Investment can be made through improving infrastructure, sustainable fishing practices, and creating a stable political environment to attract foreign investments. These pillars are a comprehensive approach to bring forth a new transformation technology in Somalia. Through the sustainable exploitation of its long shoreline and ample marine resources, Somalia will effectively maximise its economic benefits from fisheries. By applying international best practices combined with existing local experience, the fishing industry is expected to become an essential force for Somalia’s economic growth. Fisheries is therefore well placed to contribute significantly to Somalia’s re-emergence from its economic hardship.
By: Hassan Haji Ibrahim
Senior Advisor, Ministry of Fisheries and Blue Economy, Somalia
References.
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