Sustainable Aquaculture
Sustainable Aquaculture
Business Model Description
Invest in sustainable aquaculture facilities and value chains
Expected Impact
Assist rural communities by increasing environmentally-friendly aquaculture and giving them a source of income to empower them through resilient livelihoods.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Tunisia: Centre-East
- Tunisia: South East
- Tunisia: North-West
Sector Classification
Food and Beverage
Development need
Tunisia has limited natural resources of water, soil and fisheries, and is also highly exposed to climate change, hindering food security. Degradation of land and water resources, desertification and loss of biodiversity, inappropriate use of pesticides and fertilizers, and lack of modernization prevent increase in added value with significant consequences on livelihoods. (1,2)
Policy priority
The 5-Year Development Plan (2016-2020) and National Climate Change Adaptation Plan intended to boost agriculture's contribution to Tunisia's growth by increasing agricultural activity's adaptability and bolstering food security. (3,4) Stimulus programs are also suggested for agriculture, since it employs 14.4% of the workforce and provides up to 10.1% of GDP (5).
Gender inequalities and marginalization issues
Rural women and youth constitute the most vulnerable segment of farmers (6). Rural women contribute in various ways to their families' income, in addition to household chores, and these activities are primarily underpaid or little compensated.Rural women often encounter difficulties due to societal norms and gender-based prejudice (3).
Investment opportunities introduction
In the first 11 months of 2021, 475.1 million TND (USD 164 million) of private agricultural investments were made, which shows a 26.5% increase compared to the same period of the previous year (7). Moreover, recent investment-related legislation places a premium on investor rights and provides incentives to attract investment.
Key bottlenecks introduction
COVID-19 had severe consequences on agriculture, including input supply disruptions, challenges in vital sectors, marketing and supply disruptions, logistical issues, and border closures (8). Structural restrictions affect agriculture, including poorly organized value chains, restricted access to funding, and severe water scarcity paired with low soil fertility (3).
Food and Agriculture
Development need
A total of 31 coastal and 10 deep-sea fishing ports dot Tunisia's 1,300 km coastline. The climate that crosses Tunisia creates a diverse fisheries resource base (9). The demand for new fishing units is constantly increasing, despite the fact that the degradation of resources in traditional fishing areas has resulted in stagnant biomass that can only be exploited irregularly (10).
Policy priority
Sustainable aquaculture development has been a priority in both the 2016-2020 5-Year Development Plan and the Vision 2030 for the promotion of fisheries and aquaculture (11). The objective is to fight indiscriminate fishing and to preserve marine riches from depletion, while also developing the aquaculture industry to alleviate strain on marine resources (12).
Gender inequalities and marginalization issues
Equal ownership over the value chain and profit margins for women is critical. Women clam collectors in Tunisia earn relatively little money owing to their poor bargaining power within a broader system characterized by middlemen, unjust transportation costs, and a lack of interest on the part of authorities, among many other factors (13).
Investment opportunities introduction
Even during the pandemic, aquaculture investments increased by 58,5% in terms of FDI, compared to 2019 (14). Modernization of canned tuna units, manufacture of prepared fish meals, development of aquaculture projects for the production of fish and shellfish, and freezing and processing of seafood are all critical and high-potential sectors (15).
Key bottlenecks introduction
The pandemic presented a significant challenge to activities by interfering with the usual operations of supplying required goods to consumers (fish famers) (3). Other issues include animal welfare, environmental impact reduction, sustainable production, a stronger value chain, security and quality, and the use of new technology (16).
Meat, Poultry and Dairy
Pipeline Opportunity
Sustainable Aquaculture
Invest in sustainable aquaculture facilities and value chains
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
20% - 25%
In 2019, Tunisian aquaculture and fishery sector was able to export products worth 469 million TND (USD 169 million). Over the period 2016-19, these products showed the fastest CAGR among exported products: 20.1% (17).
Indicative Return
10% - 15%
The return profile information is based on the business plan of the aquaculture farm Dorada in Morocco, which is producing bass fish with a production capacity of 720 tonnes per year with an IRR range between 10-15% (18).
Investment Timeframe
Medium Term (5–10 years)
Investment timeframe information is based on the business plan of the aquaculture farm Dorada, which is producing bass fish with a production capacity of 720 tonnes per year (18).
Ticket Size
> USD 10 million
Market Risks & Scale Obstacles
Market - Volatile
Market - Highly Regulated
Impact Case
Sustainable Development Need
Fishing and aquaculture have a significant socioeconomic impact in Tunisia, particularly among the coastal populations. Around 100,000 Tunisians get their livelihoods directly or indirectly from fishing and aquaculture (22). Subdued livelihoods in this space result in higher prevalence of poverty.
Commercial fishing has a major role in depleting natural resources in oceans and degrading the planet. Fishing boats often dump plastic and synthetic materials into the water, directly polluting it. The sheer volume of ships that enter the sea daily adds significantly to air pollution (23).
As a result of the depletion of resources and the degradation of unsustainable and illicit fishing grounds, there is an ever-increasing demand for new fishing units.
Gender & Marginalisation
In a context of increasing health risks, women working in agriculture, fishing, and agri-food face multiple challenges to protect their homes, while being confined in unsuited conditions (high population density, modest hygiene conditions, weak financial means) (21).
Women clam collectors in Tunisia earn very little money because to their weak negotiating power within a larger system characterized by intermediaries, unfair transportation charges, a lack of interest on the part of authorities and policymakers, and limited access to training (13).
Expected Development Outcome
The aquaculture sector has expanded to 21,768 tonnes in 2018, accounting for about 16% of national fishery output in Tunisia. Aquaculture fish farms will inevitably result in a decrease in reliance on commercial fishing, reducing water pollution.
Aquaculture enables the expansion of sustainable fish output while simultaneously reducing illicit fish production which accelerate depletion of fish stocks.
Gender & Marginalisation
Women have a critical role in fishing but are often unnoticed. Recognizing, comprehending, and appreciating these responsibilities will not only help sustainability, but will also enhance coastal communities' social, environmental, and economic well-being (24).
Primary SDGs addressed
14.4.1 Proportion of fish stocks within biologically sustainable levels
14.6.1 Degree of implementation of international instruments aiming to combat illegal, unreported and unregulated fishing
14.7.1 Sustainable fisheries as a proportion of GDP in small island developing states, least developed countries, and all countries. In particular, the proposed aquaculture is terrestrial and therefore conserves the marine biodiversity of the Gulf.
N/A
N/A
N/A
N/A
N/A
N/A
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Indirectly impacted stakeholders
Planet
Public sector
Outcome Risks
Aquaculture on land may result in the degradation of aquatic ressources and marine biodiversity.
Post-collection activities such as storage, packaging, transportation, and disposal might result in increased CO2 emissions.
Gender inequality and/or marginalization risk: If the gender component is overlooked, the sector may abuse inexpensive female labor, worsening women's already precarious situation.
Impact Risks
Given that aquaculture is dependent on climatic and other environmental conditions, the expected impact may be limited by these conditions.
Aquaculture fisheries may be impacted by potential disease outbreaks, equipment failure and expensive nutrients, which may result in inefficiencies potentially lowering the impact.
Impact Classification
What
Aquaculture that is environmentally responsible and sustainable, increases fishing production, and benefits those wanting to participate in fishing activities
Who
Local fishers and households whose livelihoods depend on marine resources
Risk
While sustainable aquaculture model is proven, environmental conditions, diseases, equipment and nutrients require consideration.
Impact Thesis
Assist rural communities by increasing environmentally-friendly aquaculture and giving them a source of income to empower them through resilient livelihoods.
Enabling Environment
Policy Environment
Tunisia's 5-Year Development Plan (2016-2020) seeked to increase agriculture's contribution to the country's growth by ensuring the sustainability of natural resources and bolstering food security, among other goals (26).
Tunisia is executing its National Climate Change Adaptation Plan in order to improve agricultural adaptation, guarantee food security, safeguard the country's coast, and conserve its water resources (3).
Financial Environment
Financial incentives: In agriculture and fisheries, there is a 15% investment premium on medium and large projects and 30% on small projects up to 1 million TND (USD 350,000) (28). Tunisia encourages foreign investors to pursue sustainable development; with an asset equal to 50% of the investment, up to 300,000 TND (USD 104,000), given to eco-responsible initiatives.
Fiscal incentives: For a period of 10 years, profits generated from agricultural direct investments are completely deducted from taxable income.
Other incentives: A 25% premium on the investment value may be awarded for projects located in fishing ports along the northern coast from Bizerte to Tabarka.The state may contribute to infrastructure costs associated with the development of areas devoted to aquaculture using geothermal energy (29).
Regulatory Environment
The primary law regulating fishing and aquaculture in Tunisia is Law 94-13 of January 31, 1994. Its mission is to coordinate fishing effort in different fishing zones, to rationalize aquatic species exploitation, to conserve aquatic species and to maintain their living habitat (27).
According to Law No. 94-13, a preliminary authorisation from the Minister is required to carry out an aquaculture project. The authorisation can only be issued to Tunisian nationals, public institutions, and legal organizations whose capital is owned by Tunisian nationals (27).
The Investment Law n°2016-71 on September 30, 2016 allows for two bonus and incentive programs. Article 20 of provides for a first regime for national interest projects, while Article 19 provides for projects including direct investment activities.
Government Decree 2017-389 defines projects of national interest as those contributing to a national economic priority (incl. agriculture) and satisfy one of the following criteria: investment of 50+ million dinars; creation of 500 new employment each year for three years.
Marketplace Participants
Private Sector
Private sector: Aquaculture Tunisienne, Aquaculture Pêche Scala, Medora Fish Farm
Government
"Government: Agency for the Promotion of Agricultural Investments (APIA), Directorate of Veterinary Services and Bureau of Planning and Hydraulic Equilibrium (Ministry of Agriculture), Aquaculture Technical Center (CTAQUA), National Institute of Marine Sciences and Technologies, Coastal Protection and Planning Agency (APAL)"
Multilaterals
Multilaterals: FAO, International Fund for Agricultural Development (IFAD), UNIDO, African Development Bank (AfDB), European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), The Arab Authority for Agricultural Investment and Development (AAAID)
Non-Profit
Non-Profit: Tunisian Union of Agriculture and Fisheries (UTAP), Small Scale Fisheries Tunisia (ATDPA), International Union for the Conservation of Nature (IUCN), Centre Technique des Cultures Protégées et Géothermiques (CTCPG)
Public-Private Partnership
Public-Private Partnership: Africa Agriculture and Trade Investment Fund (AATIF)
Target Locations
Tunisia: Centre-East
Tunisia: South East
Tunisia: North-West
References
- (1) The Republic of Tunisia, 2021. Voluntary National Review 2021. https://sustainabledevelopment.un.org/content/documents/279442021_VNR_Report_Tunisia.pdf
- (2) The Republic of Tunisia, 2019. Voluntary National Review 2019. https://sustainabledevelopment.un.org/index.php?page=view&type=111&nr=23372&menu=35
- (3) Minister of Agriculture, Water Resources and Fisheries. FAO 35th Regional Conference for the Near East. https://www.fao.org/3/cb1226en/cb1226en.pdf
- (4) Republic of Tunisia, 2018. Economic Recovery Plan 2019-2020. http://www.cae.gov.tn/wp-content/uploads/2019/08/Plan-de-relance-V-Finale-12-oct.pdf
- (5) French Development Agency, 2021. North Africa Regional Strategy 2021-2025. https://www.afd.fr/sites/afd/files/2021-03-02-49-37/strategie-regionale-afrique-nord-2021-2025.pdf
- (6) FAO, 2021. FAO supports a new startup that facilitates market access for small farmers and Tunisian artisans. https://www.fao.org/neareast/news/view/en/c/1413975/
- (7) APIA, 2021. 475.1 Millions de dinars d'investissements agricoles privés durant les onze premiers mois de l'année 2021. http://www.apia.com.tn/actualites/detail/179
- (8) SwitchMed, 2018. Tunisia. https://www.unido.org/sites/default/files/files/2020-01/SwitchMed%20Magazine%20-%20Tunisia.pdf
- (9) Ministry of Agriculture, Water Resources and Fisheries, 2021. Projet Annuel de performance de la Mission agriculture, ressources hydrauliques et pêche. http://www.gbo.tn/sites/default/files/2021-04/PAP-2021%20Agriculture%2Cressources%20hydrauliques%20et%20p%C3%A8che%20maritime.pdf
- (10) Eurofish Magazine, 2020. Tunisia - Aquaculture booms as capture production stagnates. https://www.eurofishmagazine.com/sections/country-profiles/item/757-tunisia-aquaculture-booms-as-capture-production-stagnates
- (11) SwitchMed, 2021. Soutien de l'ONUDI pour le développement de l'aquaculture durable en Tunisie dans le cadre de la composante Économie Bleue de SwitchMed. https://switchmed.eu/fr/actualites/unido-to-support-the-development-of-sustainable-aquaculture-in-tunisia-under-the-switchmed-blue-economy-component/
- (12) FAOLEX Databese. Tunisia. http://www.fao.org/faolex/results/details/en/c/LEX-FAOC167198
- (13) FAO, Promoting gender equality and women's empowerment. http://www.fao.org/3/i6623e/i6623e.pdf
- (14) Stakeholder Consultations held in 2021.
- (15) Invest in Tunisia. Agribusiness. http://www.investintunisia.tn/En/investment-opportunities_128_84
- (16) Westmed Initiative, 2020. BUILDING A FULLY SUSTAINABLE AQUACULTURE SECTOR. https://www.westmed-initiative.eu/wp-content/uploads/2020/12/Draft-masterfile-Aquaculture-Webinar.pdf
- (17) PBR Rating. https://www.pbrrating.com/assets/docs/etude-macroeconomique-tunisie-2020-pbrrating.pdf
- (18) National Aquaculture Development Agency. https://www.anda.gov.ma/.
- (19) NABC, 2018. Tunisia Business Opportunity Report Agriculture. https://nabc.nl/wp-content/uploads/2020/08/NABC-Tunisia-Report_FINAL.pdf
- (20) FAO. Vue générale du secteur aquacole national Tunisie. https://www.fao.org/fishery/countrysector/naso_tunisia/fr#tcN70100
- (21) Tunisian Institute of Strategic Studies, 2020. Measures protecting the agricultural sector and the proper functioning of the agri-food industry in the face of the COVID pandemic. http://www.onagri.nat.tn/uploads/Etudes/ites-covid19.pdf
- (22) IFAD. Tunisia. https://www.ifad.org/en/web/operations/w/country/tunisia
- (23) Pinduoduo, 2021. The Pros and Cons of Aquaculture. https://stories.pinduoduo-global.com/agritech-hub/pros-and-cons-of-aquaculture
- (24) WWF, 2020. La pêche est-elle toujours un monde pour les hommes uniquement? https://www.wwf.tn/?32863/La-peche-est-elle-toujours-un-monde-pour-les-hommes-uniquement
- (25) UN, 2020. Une plongée en profondeur dans la campagne « Faim Zéro » : cultiver les océans. https://news.un.org/fr/story/2020/11/1082322
- (26) Republic of Tunisia. 5-Year Development Plan (2016-2020). http://www.tunisie.gov.tn/uploads/Document/02/978_445_Plan-developpement_2016_2020.pptx
- (27) FAO, National Aquaculture Sector Overview Tunisia. https://www.fao.org/fishery/countrysector/naso_tunisia/
- (28) Invest in Tunisia. Provided Financial Incentives. http://www.investintunisia.tn/m/En/provided-financial-incentives_11_622
- (29) Invest in Tunisia. Incentives for the Sector. http://www.investintunisia.tn/En/incentives-for-the-sector_128_85
- (30) IUCN. Aquaculture and Marine Conservation TUNISIA CASE STUDY. https://www.iucn.org/sites/dev/files/content/documents/01_aquamarin_tunisia_v04_final.pdf "31) Food Business Africa. Tunisian aquaculture company STEP seeks US$7 million funding to bolster growth. https://www.foodbusinessafrica.com/tunisian-aquaculture-company-step-seeks-us7-million-funding-to-bolster-growth/"