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EXPERIENCES ON FUNDING IN THE ARTISANAL FISHERIES SUB-SECTOR

REPUBLIC OF MOZAMBIQUE MINISTRY OF FISHERIES. (FISHERIES DEVELOPMENT FUND). EXPERIENCES ON FUNDING IN THE ARTISANAL FISHERIES SUB-SECTOR. BASIC STATISTICS. Marine and inland waters → 113.000 Km2 Nº of rivers → 25 Coastline → 2.750 Km. 2007. Nº of Fishermen → 280.000

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EXPERIENCES ON FUNDING IN THE ARTISANAL FISHERIES SUB-SECTOR

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  1. REPUBLIC OF MOZAMBIQUE MINISTRY OF FISHERIES (FISHERIES DEVELOPMENT FUND) EXPERIENCES ON FUNDING IN THE ARTISANAL FISHERIES SUB-SECTOR

  2. BASIC STATISTICS • Marine and inland waters → 113.000 Km2 • Nº of rivers → 25 • Coastline → 2.750 Km • 2007 • Nº of Fishermen →280.000 • With boats →136.000 • Without boats →144.000 • Fishing gears →42.268 • Fishing Centres →1.227 • Production → 90% • Carpenters → 5.736 • Mechanics → 366 • Net makers → 6.141 • Traders → 25.517 • Fish processors → 16.219

  3. BACKGROUND – COLONIAL PERIOD • Absence of directing/leading institutions • Mozambiqueconsumerofothercountriessurplusproduction • Industrial FishingProhibited • TrawlingProhibited (excluding for shrimptrawling) Absenceofpolicy/developmentstrategy

  4. AFTER INDEPENDENCE Years 1975/88 CentrallyPlannedEconomy • ProductionandMarketchainassuredbytheStatethroughCP´s/PAC´s • Inputsupply • Boatbuildingandrepair • Technicalassistance • Absorptionoftheproductioninexchange for cashandspecimen SEP (Secretary of State for Fisheries) UDPPE (10) CP´s Credit to artisanal fisheries not a necessity (34) PAC´s

  5. ECONOMIC REHABILITATION PROGRAM From 1987/88 Marketeconomy • ↓ Interventionist role of the State • Privatization of CP´s e PAC´s /Without private sector • ↓ Supply and technical assistance capacity • ↓ currency value • ↓ Purchasing power • Decapitalization of the operators • Withdrawal of banking system from the rural areas • ↑ Civil war • “Institutionalization” and “inculturation” of donation Recession First signs of credit need (90´s)

  6. FISHERIES SECTOR REFORM U.D.P.P.E. I.D.P.P.E. (1989) ESTABLISHMENT OF F.F.P. (1988) • Technology • Infrastructure and equipment • Social development • PCR´s/SRC • PIP´s (1988.....) • Crédit (from 2000.....) • PRPE (LCR) • Nº of beneficiaries → 1.545 • Total amount → MZM 33 millions • Amortization → 43% Financial Services

  7. PUBLIC SECTOR REFORM SAP (Fisheries Administration System) SP (Politic Sub-system) SGP (Resource Management Sub-system) SPD (Development Promotion Sub-system) IDPPE INAQUA EP FFP • Joint Provincial Delegations • Rationalization of means • Harmonized interventions • Total coverage facilitated FFP

  8. FINANCIAL SERVICES Financial Services Enterprising Crédit Informal (PCR/SRC) Formal Direct Intervention (Retail) Indirect Intervention (Wholesale)

  9. INFORMAL CREDIT- P.C.R./S.R.C. Nº of groups → 1.187 Nº ofmembers → 23.560 Total → MZM 54.139.000,00 (USD 2 millions) • Advantages • ↑ Levelofwellbeing • ↑ Cultureofembarkingoncredit • Eligibility for formalcredit Setback/Embarassment(?) “Excess” of cash

  10. FORMAL CREDIT Total Portfolio → MZM 68.438.387,40 (USD 2.5 Million) • Artisanal Fishery • Nº of beneficiaries → 2.430 • Nº of districts → 57 (11 Provinces) • Aquaculture • Nº ofbeneficiaries → 450 • Nº ofprovinces → 3 (Mn, Tt e Ib)

  11. ENTERPRISES - PROJECTS TO SUPPORT FISHING Portfolio → MZM 12.046.000,00 / USD 446.148,15 (Promotedfromcreditlines)

  12. CONSTRAINTS • Desarticulation with entities (NGO´s e GO´s) practicing donation • FFP only supported by earmarked funds • ↓ Licences fee from “Industry” (earmarked funds) • ↓ Price of the shrimp from capture fisheries • ↑ Fuel Price • ↑ Aquaculture shrimp

  13. RECOMENDATIONS • ↑ Funds to beallocated for developmentpromotion • Artisanalfishery • Aquaculture • Harmonizationofproceduresamongthevariousentitiesoperatingwithfishermen • Consolidationofstrategy • Rural development promotion “today” • “Banking” in rural areas “tomorrow”

  14. FINAL CONSIDERATIONS • Theviabilityofouractivities are notmeasured via accountingsystembutthroughtheimprovementofthe standard oflivingofourtargetgroup • Ourmottois to increaselittletheproductionofmanyandnot to increase a lottheproductionoffew

  15. THANK YOU

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