‘Sustainability through natural strategic advantage’

Advance Africa Projects

Aquaculture development in Lesotho and Seychelles.

Tom Hecht

‘SUSTAINABILITY THROUGH NATURAL STRATEGIC ADVANTAGE’

Advance Africa Management Services is a developer of sustainable Agriculture and Aquaculture projects in sub-Saharan Africa and Western Indian Ocean Region. Partnering with global investors and leading global

technology providers, we continually search for investment opportunities and project management solutions that will achieve sustainable investment,

advance employment and improve lives. This presentation provides some insights into our work with a focus on

Lesotho and the Seychelles.

‘Sustainability through natural strategic advantage’

STRATEGIC AQUACULTURE LOCATIONS IN SSA AND WIO REGION

RAINBOW TROUT

TILAPIA

HIGH VALUE SPECIES

Natural strategic advantages - Lesotho and Seychelles

Lesotho • Need for economic development in the

Highlands • Job creation and social benefits • Rainbow trout • Secured market • Pristine alpine environment • Excellent water quality and environmental

conditions • Enabling Regulatory Framework

(developed) • Industry opportunities: Katse dam, Mohale

dam and Polihale dam • Major challenge: Climate change

Seychelles • Need for national economic diversification • Contribution to GDP, skills development • Tiger grouper, Emperor snapper,

cucumber, urchin • Secured market • Pristine marine environment • Excellent water quality and environmental

conditions, outside cyclone belt • Enabling Regulatory Framework

(developing) • Industry opportunities: Inshore, ADZ,

Offshore and Outer Islands • Major challenge: Climate change (rapid

warming) • Geographic position to supply Africa,

Europe and Asia

HIGHLANDS TROUT LESOTHO

The challenges of developing a large scale aquaculture business in Southern Africa

Highlands Trout: Location ‘Sustainability through natural strategic advantage’

Katse Dam

Mohale Dam LHWP stats – water volumes, residence time etc.

Katse Dam Surface Area

35 km2

Volume 1,950 million m3

Residence time

±1.8 years

Highlands Trout: ‘Sustainability through natural strategic advantage’

Katse Dam

Highlands Trout: Timeline ‘Sustainability through natural strategic advantage’

Timeline 2005- 2014 2005 Conceptualisation (Goldfields – employment)

2006-2008 Specialist studies incl. carrying capacity, feasibility study

2009 Fundraising & project structuring

2010 Lesotho – drafting of regulatory framework

2010 EIA , incl. public participation process

2011 Feb Commence development

2011 Sept First fish in fingerling nursery

2011 Dec First fish stocked in grow out cages

2012 Production = 500 TPA

2013 Feb First fish exported to Japan

2013 Production capacity = 1.250 TPA

2014 April EIA completed for Mohale dam

2014

Production capacity = 2.000 TPA

• Lack of infrastructure in a

remote area

• No regulatory environment (policy, framework etc.)

• Absence of aquaculture

knowledge base and farm management experience

• Skills shortage - construction and operation phases

• Language barrier

• Learning curve related to

fish genetics

• Lack of education and modern life skills (incl. swimming)

• Logistics - Inputs and exports

• Market access -

The Challenges

Highlands Trout: Challenges ‘Sustainability through natural strategic advantage’

Highlands Trout: Operations ‘Sustainability through natural strategic advantage’

Katse Dam - Offices, Fingerling Nursery and Hatchery (Old concrete testing facility)

Ova hatched on site in locally built hatchery facility

Highlands Trout: Hatchery ‘Sustainability through natural strategic advantage’

Fry reared in flow-through Fingerling Nursery facility from 2g-20g

Highlands Trout: Nursery ‘Sustainability through natural strategic advantage’

Highlands Trout: Grow Out ‘Sustainability through natural strategic advantage’

Fish are moved to grow-out cages (25x25x15m) at 150g and harvested at 2,5kg

Highlands Trout: Feed Storage ‘Sustainability through natural strategic advantage’

150 Tonne – Feed store

No -- it is not Norway

WATER QUALITY TESTING & FISH HEALTH SAMPLING DONE ON SITE

‘SUSTAINABILITY THROUGH NATURAL STRATEGIC ADVANTAGE’

July 2011: Office area

Highlands Trout: Processing ‘Sustainability through natural strategic advantage’

Gutting, washing, grading

Highlands Trout: Processing ‘Sustainability through natural strategic advantage’

Fish are glazed, weighed and then boxed for dispatch

Highlands Trout: Production & Logistics ‘Sustainability through natural strategic advantage’

0

500

1000

1500

2000

2500

3000

3500

2013 2014 2015 2016 2017 2018

HT Production timeline

Highlands Trout: Marketing and Sales

‘Sustainability through natural strategic advantage’

Sales Distribution 2014 Japan 75%

Lesotho 5%

South Africa20%

Highlands Trout: Operations

CSR projects include : Annual Marathon, soccer team development, water safety training and supply of safe transport boats, school support, orphanage support, indigenous tree growing nursery development and more …

Highlands Trout: Conclusion ‘Sustainability through natural strategic advantage’

Success factors: • Natural strategic advantage of the water body • Correct scale • Correct assessment of market opportunity • Methodical / diligent approach to development

process • Norwegian farm management expertise

The Seychelles: Aquaculture opportunities

’

Seychelles Mariculture Master Plan

Seychelles: Location ‘Sustainability through natural strategic advantage’

MARICULTURE MASTER PLAN

The Seychelles Mariculture Master Plan (MMP) is a tool

“To enable Seychelles to develop a sustainable mariculture sector that is integrated into the country’s economic vision and respects the unique and sensitive nature of the marine environment”

Proponent The client for this project is the Seychelles Fishing Authority (SFA)

Consultants Project Managers – Advance Africa Management Services

ESIA – Golder Associates Africa & Valsen Consulting

• Large EEZ (1.4 m sq km) with high quality water

• Inner islands are out of cyclone belt

• Excellent location for export to Africa, Europe and Asia

• Indigenous candidate species in high demand overseas

• Two deep-water ports - capable of supporting an industry

• International airport

• Mild to moderate wave action

• Excellent water quality

SUITABLILITY FOR AQUACULTURE

NEW FISHERIES ACT (2014)

SEYCHELLES MARICULTURE POLICY

MARINE AQUACULTURE AND SEA RANCHING REGULATIONS

SEYCHELLES AQUACULTURE STANDARDS developed for all

species and Associated aquaculture activities.

INVESTMENT INCENTIVES defined

ONE STOP APPLICATION SHOP, licensing and license conditions established for efficient & enabling application and evaluation procedures

AQUACULTURE DEVELOPMENT ZONES defined for land and sea based operations for inner islands.

CANDIDATE SPECIES assessed and defined

PRODUCTION POTENTIAL – defined for candidate species around inner islands

AQUACULTURE & RANCHING OPPORTUNITIES defined for 6 outer islands (5 more islands to be assessed in early 2015)

AQUACULTURE POLICY GUIDELINES for Outer Islands

THE MARICULTURE MASTER PLAN (2011 to 2015) Providing a Framework for Sustainable Aquaculture

Development

• Seychelles has 52 km2 of suitable cage culture areas around the inner islands

• Outer island opportunities for fin fish, pearls, sea cucumbers and sea urchins currently being assessed

• MOM carrying capacity (Stigebrand 2011) = 48.2 t/ha/y • Region is data poor, invoke precautionary principle and restrict

production to 10 t/ha/y

Seychelles: Aquaculture Opportunity ‘Sustainability through natural strategic advantage’

•

Emperor Snapper hatchery in Japan

Brown marbled grouper spawning aggregation

AQUACULTURE DEVELOPMENT ZONES

•

CANDIDATE SPECIES AND BUSINESS FEASIBILITY ASSESSMENTS Aquaculture

production systems

Aquaculture inputs

Biological information

Markets & consumption

Producers & suppliers

Natural distribution

SPECIES SELECTION

CRITERIA

Mud crab Prawns Coral

Brown marbled grouper Epinephelus fuscoguttstus

Emperor Snapper Lutjanus seabae

Mangrove snapper Lutjanus argentimaculatus

Pompano Trachinotus blochii

Sandfish Holothuria scabra

Marine ornamantals Yellowfin tuna fattening (?) Black pearl Pinctada margaritifera

Sea urchin Tripneustis gratilla

Implementation of MMP Cabinet approval to proceed (approved)

ESIA & PPP (underway)

Development partners (MoU with NOFIMA, Norway and Kindai University, Japan)

Business case and R&D facility

Final revision of Regulatory Framework and gazetting of Regulations

Attracting FDI

Comprehensive value chain development

Expansion and improved logistics and freight

Effective restructured Regulatory Authority (Mariculture Division)

Development of human resource capacity in the Seychelles

Draft ESIA, Specialist Studies and ESMP The ESIA and specialist studies comprises -

Physical Oceanographic Modelling Study Site selection and carrying capacity Study Waste Study Coral Reef and Benthic Study Technical Aquaculture Study Visual Impact Assessment Noise Impact Assessment Social Impact Assessment Cultural Heritage Impact Assessment

Each study identified potential impacts and proposes mitigation measures for each.

The Environmental and Social Management Plan (ESMP): It contains the mitigation measures and management interventions to address identified

impacts Aims to reduce negative impacts and enhance positive impacts Aligned to international best practice for Aquaculture It incorporates the draft Aquaculture Standards, Guidelines and Licence Conditions developed

as part of the MMP that will regulate the new sector The new aquaculture sector will develop in stages with initial fish farms within Tier 1 ADZs

requiring rigorous monitoring and satisfactory results in order for the sector to expand

Final stages and final comments were submitted on 31 October 2016.

Thank you