Horizons for development of fish investments [Archives:2005/872/Business & Economy]
Ridhwan Al-Saqqaf
Fish industry sector receives great attention from the Yemeni government, especially towards fish production activities of traditional fishermen. That attention is done through developmental economic plans, and drawing up their executive timed programs aimed at developing fishery in coastal regions. The aim also focuses on increasing the number of such fishermen, improvement of their catch quality and increasing local fish marketing channels to include all regions of Yemen. The plans also include development of fish abroad exportation.
Despite of the governments efforts exerted for the development of fish sector that is a very important economic factor, traditional fishermen groupings spread in the coastal area of Yemen are still in need of more investment proportionate to their productivity needs, especially for basis structure, and means of fishing as well as provision of social services, such as electricity, water, health and education.
Yemen has been following a programmed policy for the development of rural areas and improvement of living conditions there. Under directives by President Ali Abdullah Saleh, efforts are being exerted for taking care of coastal areas for raising the fishermen's standard of living. Thus the Ministry of Fish Wealth have directed it efforts for building projects of to develop the fish industry. It has finished the fourth fish wealth development project. The project aims at raising the living standard of fishermen and increase production. The ministry has also set up a full strategy for the fish sector containing priorities and major trends for future fish industry projects. The strategy includes three premises:
1- Rendering support for fish studies and researches for preserving the fish wealth, modernizing fish stocks and defining allowable ceilings for catching fish and marine life during their seasons. In addition, the studies aim at providing laboratory means and equipment for the implementation of fish studies, leading to develop the fish wealth and protection of its environment.
2- Ideal exploitation of the fish wealth and providing necessary factors for activating the role of sea watching and inspection. In addition, it aims at fighting illegal fishing in regional waters and enhancement of efforts for meeting needs of Yemeni local market and encouragement of fishermen on exporting fish outside the country.
3- Continuation in building new fish installations and facilities, considering them as most important strategic pillars for raising production efficiency of the fish wealth and providing other social services. These are among important auxiliaries for realization of fishermen stability and consequently are able to practice their work easier.
For the achievement of those main goals with regard to future fish projects, the ministry of fish wealth began its communications with financing parties in order to develop those goals through conducting discussion with the ministry's officials and then preparation of a document assessing the fish sector and pinpointing difficulties that it has been facing, such as public services as electricity, water, roads, health services, education and funding. This premise also focuses on giving particular attention to encouragement of in investment in waters of Jazeera archipelago that is rich with fish and other marine life. It is still a virgin area for investment in the field of fishery and especially in the area of service centers and societies for fish production. Those centers and societies could provide catch of fishermen who work in waters of the Jazeera, and manufacture it for local markets and exportation.
Another aim of the third premise is the establishment of stock companies for fish investments in coastal areas.
In order to increase production and encourage investment in fish wealth it is necessary to:
– encourage small investors for establishment of stock companies in various fields of fish sector, especially in production and productive services, marketing and manufacturing fishing tools and canning industry.
– due to importance of and special characteristic of the process of utilizing fish wealth, the process of production, preparation and different manufacturing processes, these processes are in fact complementary. This characteristic helps ands encourage the investor to use his investments in an intensive manner.
– operate inoperative public sector fish establishments and factories, such as fishery ports in Aden, Mukalla and Nashtoun, by establishing national companies by the state or the private sector or participation through opening the door for Yemeni citizens to buy shares. Priority should first be given to employees at those establishments and then to those working in fish sector as well as investors from inhabitants of the areas where such companies are intended to be established.
Under present conditions of state fish installations existing in areas of fishing ports and in case the state is incapable of rectifying conditions of those installations, there are many opportunities for mixed companies for integrated investment. In this regard, there are opportunities for investment in the existing fish complexes. These are, a- fishing port complex in Aden, b- fishing port complex in Mukalla, Hadramout, c- fishing port complex in Nashtoun, Mahara, d- fishing port complex in Hudeidah, and e- the state establishment for services, Aden. There is encouraging opportunity for investment in those installations especially for the establishment of multi-purpose companies for fish industry.
Privatization of fish installations in coastal areas
As part of the program of reforms and assessment of fish sector performance taken by the ministry of fish wealth, it (the ministry) has to conduct a thorough revision and prepare studies on economic feasibility for a number of fish establishments that it has been proved that there is no economic feasibility of operating them by the state establishment of fish services and marketing. The fish wealth ministry had proposed at a Yemeni cabinet meeting on 25 March 1998 a number of solutions for those installations. It suggested the lease or selling of a number of ice producing installations because they proved having no economic benefit of operating the ever they were built. The ministry also proposed the lease or selling of a number of refrigerators for preserving fish in certain areas for the same reason concerning ice factories. It proposed the creation of joint venture with the private sector or leasing or selling some installations in Hudeidah, claiming they had not been operated since their construction in 1984.
Investment in marine life fisheries
Reports by the UN Food and Agriculture Organisation (FAW) indicate that rate of production of fish in natural fisheries at sea, rivers and lakes is gradually decreasing. The reason is the overexploitation of those fishing areas and some simple fluctuations that negatively affected fish reservoir. To tackle this problem and solved it, breeding fisheries have been established, particularly for breeding types of fish possessing economic value.
Artificial fisheries in the world have seen importan5t development with regard of escalation in productivity of fishery marines.
Marine life fisheries experiment in Yemen
Under support from the Japanese government, marine life fishery was built in the city of Lesser Aden in 1988. It was supplied with equipment and means of transport and provided with Japanese expertise. The fishery, since its inauguration, had co0nducted many experiments on marine life that are of economic significance. The experiments had achieved somewhat good results in the fishery of shrimp. In 1990, the experiment was repeated but because of some subjective and objective factors, the fishery center could not continue in the process of fishery and did not realise the targeted plans. Moreover, because of the Gulf war, the Japanese support stopped. In addition, the fish wealth ministry did not render mush care for the fishery situation, did not provide for its requirements and negligence towards its employees and supervisors. Added to above reasons, natural and artificial breeding areas were not established to receive the fishery centre's production of marine larva, and that made employees throw them away to the sea.
Apart from the experiments made at the fishery center, al-Murjan Company was established. It is a private sector company established in an area to the east of the town of Shahr, Hadramout governorate. It undertakes carrying out experiments on breeding shrimp and seaweeds used in medicine formulas. As a beginning of its production, it has exported to Saudi Arabia half a million of shrimp larva after their growth and size were suitable for exportation.
The ministry of fish wealth is working for using its centers for breeding marine life to conduct experiments and researches for producing shrimp larva in commercial quantities, especially those having economic significance. It is also working for carrying out experiments for the production of various species fish larva and an attempt for breeding them for marketing purposes.
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