A hallmark of modernity is the mastery of nature by man to fulfil needs, and the harnessing of technology to overcome the problem of scarcity.⁽²⁾ Innovations in agriculture thousands of years ago have meant that most of the food one eats is grown, cultivated, bred or simply farmed. Most but not all, since animal food sources from the seas are still largely acquired through gathering. Aquaculture, for example, as a commercial activity, is only 30 years old.⁽³⁾ The nexus here is an idea that sustainability and growth are not mutually exclusive.⁽⁴⁾ These sentiments were given clear annunciation at the 2012 United Nations Conference on Sustainable Development, Rio+20.⁽⁵⁾ Proffered within this context as a ‘green’ and sustainable solution to food insecurity, one of Africa’s most salient socio-economic problématiques, this CAI paper explores aquaculture and micro-economic security from an industry and business specific vantage point.

Maslow and the market in Africa: The priority of food versus the structure of economies

Marketing campaigns communicate an industry’s market-awareness.⁽⁶⁾ They also reflect an industry’s awareness and concerns regarding societal expectations, social imperatives, popular issue areas and certainly consumer trends.⁽⁷⁾ They then also inform one about consumer perceptions.⁽⁸⁾ Maersk’s ‘blue is the new green’ campaign, Volkwagen’s ‘blue motion’ and ‘think blue’ along with Mercedes-Benz’s ‘blue efficiency’ illustrate the selling power and positioning of the ‘green’ issue in the collective imagination of popular consumerism’s collective psyche.⁽⁹⁾ ‘Environmentalism’ and the ‘green’ imperative (pertaining to the ‘green industry’) place imperatives and onuses on industry proper and sovereign states.⁽¹⁰⁾ This is illustrated by the case of developed countries using the imperative to conform to ‘green’ standards as an indirect strategic tool to increase the competitiveness of the developed world, for which it is easier to reform and conform, making them more competitive in the global arena.⁽¹¹⁾ Competition thus becomes an idiom through which to understand economics as the extant power modality between states.⁽¹²⁾ For example, in aquaculture, scientific and technical knowledge affect the competition dynamic.⁽¹³⁾ Aquaculture can thus represent a nexus of this problematic. Africa is herein caught between the necessity to book growth and alleviate deontological socio-economic problems while conforming to reform imperatives set by the ‘developed world’.⁽¹⁴⁾

Aquaculture (the cultivation of aquatic organisms) has been proffered as an opportunity for ‘green’ solutions to food insecurity, which is considered an important socio-economic issue for Africa, particularly sub-Saharan Africa (SSA).⁽¹⁵⁾ This is revealed, for example, by the Global Hunger Index (a multidimensional measure of ‘hunger’ including undernourishment, number of children underweight and child mortality), according to which sub-Saharan Africa is the most hunger afflicted region in the world along with South Asia.⁽¹⁶⁾ Only Mauritania, Ghana, Tunisia and Congo Brazzaville have been able to decrease their levels of hunger by 50% or more for the period 1990 to 2012.⁽¹⁷⁾

The above is compounded by socio-economic problems and demographic trends across the sub-continent. Demographics affect consumption, and consumption trends indicate where the demand is.⁽¹⁸⁾ And where there is demand, there is the opportunity for suppliers to make profit.⁽¹⁹⁾ Bringing this into the aforementioned nexus, the demographics of SSA bespeak the already important aspect of creating opportunity, which is constrained by the sub-continent’s level of capability to compete in the international economic system.⁽²⁰⁾ Linked to this, the population trends of SSA are: an increasing population (between 2005 and 2010, the population growth rates of Africa and sub-Saharan Africa were 2.3% and 2.5% respectively, higher than any other region);⁽²¹⁾ a rise of the youth segment within the population (the median age in Africa and sub-Saharan is 19.7 and 18.6 respectively, the lowest in any region);⁽²²⁾ and an increasing urban, middle class (in 2010, the middle class made up 34% of Africa’s population, with a growth rate of 3.1% over the 1980-2010 period, faster than the population growth).⁽²³⁾ Compounding this, the structure of the system itself or changing regulations instantiated by other actors in the international economic system can inhibit a state’s capacity to alleviate socio-economic problems, such as food security through sustainable ‘green’ growth, faced by these demographics.⁽²⁴⁾ This occurs, for example, through the taxation of carbon-intensive production, eco-labelling and other climate change mitigation regulations.⁽²⁵⁾ These are indirect strategic approaches that affect states’ competitiveness by, for example, negatively impacting upon production and transportation costs and terms of trade.⁽²⁶⁾

The increase in the population as a whole is relevant in the immediate context (food security, animal food sources and aquaculture) since there will be more mouths to feed, which is itself linked to a series of pertinent factors such as micro-economic security.⁽²⁷⁾ The youth segment represents a large portion of the active labour force, which requires sustenance and hence the rise in the demand for animal food sources.⁽²⁸⁾ The increase of the urban middle class alerts one to several relevant communicators. Urbanisation represents social mobility in search of opportunity and, by extension, micro-economic security.⁽²⁹⁾ Urbanisation puts pressure on the state as its capacity is tested: more is demanded of it in terms of infrastructure and job creation.⁽³⁰⁾ The middle class represents spending power.⁽³¹⁾ This is especially important since the response of demand for animal food sources to increased income is strong.⁽³²⁾ The demand response for fish and seafood to increases in income is particularity strong – this is true not only relative to other animal food sources (beef, pork, chicken, eggs and milk), but the demand response is also particularly strong in developing countries or ‘blocs’.⁽³³⁾ However, when swathes of social strata are still engaged in subsistence farming to secure a modicum of micro-economic security, and commercial farming is inhibited by lacking property rights, no access to finance, insalubrious policies and failing bureaucracies, then one is faced with a structural problem.⁽³⁴⁾ The strategic import of food security is revealed through Maslow’s ascribed significance to, and the nexus between, physiological (food and water) and safety needs (security of body, employment and resources) and the socio-economic problems faced by SSA.⁽³⁵⁾

Aquaculture represents not only a growth industry and a growth opportunity, but a means to address socio-economic problems. By representing a means to deal with food security, an opportunity to fulfil socio-economic duties on the part of the state and an area of economic activity in which there is international competition, aquaculture is a microcosm of the power modality mentioned earlier. The nexus herein revealed is that of a relatively new industry (aquaculture) that has the potential to present a ‘green’ solution (environmentally ‘friendly’ and sustainable) to a geo-economic unit of analysis (SSA), which is faced with socio-economic challenges (micro-economic security and food security) within an international economic system (characterised by an economic power modality understood through the idiom of ‘competitiveness’) that affects its capacity to achieve success. The significance for business is to appreciate the opportunity represented by the growth market and the industry’s exigencies exactly because it is linked to a socio-economic problem. SSA states in turn must appreciate the technological, policy and regulatory prerequisites for business to succeed in developing this ‘blue industry’, and the benefits to be accrued by succeeding. One facet of increasing productivity is a healthy, well-fed population.

Feeding an industry: The demands of success and growth

Aquaculture represents a ‘green’ solution to food security because of the rationale that it represents an innovative use of technology to solve the problem of scarcity in an environmentally friendly and sustainable manner, promising consistency of supply at lower prices.⁽³⁶⁾ Juxtaposed with the traditional way of attaining animal food sources from the oceans (fishing proper, such as trawling), aquaculture can turn an extractive industry into one that minimises extraction and maximises the use of innovation and technology to achieve the same end. This is a textbook definition of a sustainable solution to socio-economic problems.⁽³⁷⁾

The data surrounding food insecurity, hunger, and commodity data of animal food sources are revealing. The quantity of animal food sources supplied by aquaculture has increased by 89.5% since 1970 relative to extractive sourced aqua-organisms, while the quantity of animal food sources supplied by aquaculture has increased by 34.5% between 2006 and 2011, with SSA’s aquaculture sector’s production experiencing an 83.3% increase over the same period.⁽³⁸⁾ This makes aquaculture the fastest growing animal-food-production sector.⁽³⁹⁾ Furthermore, the market share of aquaculture in international trade has seen increases in both high-priced species (salmon, shrimp, prawns, scallops) and a broader range of species.⁽⁴⁰⁾ Even though there is a trend among developing states of frozen produce, problems with infrastructure result in live or fresh produce still dominating the market.⁽⁴¹⁾ The opportunity herein is common in Africa. The facilitation of trade (improving infrastructure, reducing non-tariff barriers, assisting with finance, streamlining bureaucracy) and increasing sector-specific growth (agriculture, manufacturing and telecommunications) is tied to socio-economic concerns (unemployment, poverty and hunger). Herein lies the opportunity to solve the socio-economic problems pertaining to Maslow’s most basic human needs.

Looking at the market, aquaculture production is composed mostly of freshwater and diadromonous fish and molluscs (representing about 80% of production, compared to just below 20% in extractive produce).⁽⁴²⁾ The decrease in extractive techniques is in turn attributed to more stringent regulation, higher costs and decreased stocks of aqua-organisms, which is compounded by the now non-existent scope for increases in the extractive sector.⁽⁴³⁾ Currently, however, SSA has no major aquaculture production centres relative to the rest of the globe, with Egypt and Nigeria being the biggest producers, followed by Uganda.⁽⁴⁴⁾ Nigeria, Uganda, Kenya, Ghana and Zambia are the fastest growing producers in SSA.⁽⁴⁵⁾ The biggest markets in Africa in terms of consumption are in central and north-western Africa (it has actually decreased or remained static in southern Africa), along with Egypt.⁽⁴⁶⁾

Another trend is the move towards the carnivorous North African catfish as the most produced aquaculture species. Consumption in Nigeria has risen to such an extent that the country now imports stocks of catfish. The worrying trend here is that carnivorous fish are fed with other fish. Centres of high consumption in Africa can, however, take lessons from China, Vietnam, India, Indonesia and Bangladesh. Focus was directed at easing dependence on high-protein feeds, which is controversial as aqua-products are used in much aquaculture feed. Pressure is hereby placed on the extractive sector or other agricultural commodities, to which is attached price volatility, to supply the aquaculture industry.⁽⁴⁷⁾ By utilising technology to decrease this dependence, these countries have decreased their vulnerability to one of the greatest factors in the extant security equation of a globalised world: volatility, introduced by externalities accentuated by the character of the international economic system.

Africa still represents the lowest aqua-produce consumption, at 9.1 kg per capita per year, compared to 20.7 kg in Asia.⁽⁴⁸⁾ Aquaculture consumption is then also culture specific, so it certainly does not represent a panacea for Africa.⁽⁴⁹⁾ Complimenting this is the importance of ‘culture environment’, whether that is fresh water (continues to grow at the greatest pace, reaching 62% in 2010 of aqua-production), brackish water or marine water. Equally revealing is that extractive techniques still dominate in Africa in terms of employment. Regarding the percentage of people employed in aquaculture within the larger context of all aqua-industries (fishing and fisheries), only 3.8% of the people in Africa work in aquaculture; the global average is 30.2%.⁽⁵⁰⁾ In terms of employment though, pertaining to the 1990-2010 period, Africa has experienced an eyebrow-raising 7,400% increase in the number of people employed in aquaculture, compared to the world’s 327%.⁽⁵¹⁾

The industry drivers include advances in breeding technology, system design and feed technology.⁽⁵²⁾ In an industry characterised by sensitivity to environmental changes and vulnerable to diseases, this is important, as SSA is lacking in exactly these fields.⁽⁵³⁾ In 2011, for example, a single disease outbreak nigh on totally destroyed farmed shrimp in Mozambique.⁽⁵⁴⁾ The industry does face criticism on several grounds. Pollution is a big concern. Dead fish and uneaten food can damage marine ecosystems in coastal regions (such as the destruction of mangroves).⁽⁵⁵⁾ Waste material, however, is increasingly being used to make feed for the aquaculture industry.⁽⁵⁶⁾ Then the overuse of antibiotics, which can damage humans through consumption, as well as fish stocks. Genetic modification is another controversial area, especially as species produced in aquaculture increase and diversify, especially in hybrids. The successful introduction of tilapias from Africa in several Asian countries represents one such a case.⁽⁵⁷⁾ This, however, poses the threat of genetic pollution if these hybrids escape into the wild to breed with non-hybrids, together with the spread of disease and lice.⁽⁵⁸⁾

Conclusion: A fishy business

Aquaculture is a growing industry. As demographics change in Africa, this will become a larger sector, offering solutions to a range of socio-economic challenges, from food security, employment, hunger alleviation and industry growth. Success, however, is contingent upon facilitating industry development through polices that improve infrastructure and assist trade. African states that have a foot in the sector can assist aquaculture by adapting to the expansion, increased homogeneity and more globalised food markets. In Africa, demographic dynamics and economic growth, the two biggest drivers of animal-food-source consumption, indicate positive prospects. Yet, if policies that regulate (environmental standards and protection), facilitate (infrastructure development) and empower (increasing the ease of doing business) the industry, are not in place, then the demographics can compound those socio-economic problems that represent business opportunities.

Rio+20 articulated the importance of institutional frameworks for sustainable development and the supportive role of a ‘green economy’ herein.⁽⁵⁹⁾ Concomitant to this, the Food and Agriculture Organisation of the United Nations stated that hunger eradication is paramount to booking sustainable development, while production systems are factors in addressing the problem of hunger and protecting ecosystems.⁽⁶⁰⁾ This is underpinned by what is perhaps Africa’s greatest micro-economic security risk: Food security. These considerations, with their onuses and implications, indicate chances in the global food value chain, wherein sustainable socio-economic development is interlinked with technological innovation and changing perceptions of holistic social progress and the environment: Blue industrialisation.⁽⁶¹⁾

Written by André Dumon ⁽¹⁾

NOTES:

(1) Contact André Dumon through Consultancy Africa Intelligence's Industry and Business Unit ( industry.business@consultancyafrica.com).
(2) Beck, U., Bonss, W. and Lau, C., 2003. The theory of reflexive modernization: Problematic, hypothesis and research programme. Theory, Culture & Society, 20(1), pp. 1-33.
(3) Farmer, T., et al., 2012. The state of world fisheries and aquaculture 2012. Food and Agriculture Organisation of the United Nations: Rome.
(4) Pendleton, L., et al., ‘Green economy in a blue world’, United Nations Environment Programme, 2012, http://www.unep.org.
(5) ‘Report of the United Nations Conference on Sustainable Development’, United Nations, June 2012, http://www.uncsd2012.org.
(6) Bannock, G., 2003. Dictionary of economics. Penguin Books: London; Fourire, L. and Mohr, P., 2005. Economics. Van Schaik Publishers: Pretoria; Bennett, A. and Nieman, G., 2002. Business management: A value chain approach. Van Schaik Publishers: Pretoria.
(7) Ibid.
(8) Ibid.
(9) Brisdy, S. ‘Go blue to be green’, Greener Ideal, July 6 2012, http://www.greenerideal.com; Kurylko, D., ‘VW launches Think Blue campaign to pitch green initiatives’, Autoweek, 23 May 2011, http://www.autoweek.com; Seele, P., ‘Is blue the new green? Colours of the Earth in corporate PR and advertisement to communicate ethical commitment and responsibility’, Center for Responsibility Research, 2007, http://www.responsibility-research.de; ‘Sustainability action plan 2012’, Maersk Tankers, 2012, http://www.maersktankers.com. 
(10) Dent, T., 2010. “Economic security”, in Collins, A. (ed.), Contemporary security studies. Oxford University Press: New York.
(11) Harris, T., ‘WTO: DA responses to key issues at latest ministerial conference’, Democratic Alliance, 18 December 2001, http://www.da.org.za; Salvatore, D., 2007. International economics. John Wiley & Sons: Hoboken.
(12) Beck, U., 2005. The Cosmopolitan State: Redefining power in a global age. International Journal of Politics, Culture and Society 18(3/4), pp. 143-159; Dent, T., 2010. “Economic Security”, in Collins, A. (ed.), Contemporary Security Studies, Oxford UniversityPress: New York; Hayashi, C., et al., 2012. Global risks 2012. World Economic Forum: Geneva; Schwab, K., et al., 2011. The global competitiveness report 2012. World Economic Forum, Geneva; Teunissen, J. and Akkerman, A., 2005. Africa in the world economy: The national, regional and international challenges. Fondad: The Hague.
(13) ‘The promise of a blue revolution’, The Economist, 7 August 2003, http://www.economist.com.
(14) Freedman, L., 2004. The new security equation. Conflict, Security and Development, 4(3), pp. 245-259; Zhengyi, W., 2004. Conceptualising economic security and governance: China confronts globalisation. The Pacific Review, 17(4), pp. 523-545.
(15) Ghanem, H., et al., 2010. The state of food and agriculture. Food and Agriculture Organisation of the United Nations: Rome.
(16) Von Grebmer, K., et al., 2012. Global hunger index 2012. International Food Policy Research Institute: Bonn.
(17) Ibid.
(18) Teunissen, J. and Akkerman, A., 2005. Africa in the world economy: The national, regional and international challenges. Fondad: The Hague.
(19) Bennett, A. and Nieman, G., 2002. Business management: A value chain approach. Van Schaik Publishers: Pretoria.
(20) Dent, T., 2010. “Economic Security”, in Collins, A. (ed.), Contemporary Security Studies. Oxford University Press: New York; Schwab, K., et al., 2011. The global competitiveness report 2012. World Economic Forum: Geneva.
(21) ‘World population prospects, the 2010 revision’, United Nations Department of Economics and Social Affairs, Population Division, 28 June 2011, http://esa.un.org.
(22) Ibid.
(23) Azkoul, C., et al., ‘Population growth and demographic trends: Implications for African states and regions’, Chatham House, September 2012,  http://www.chathamhouse.org; Haldenwang, B., ‘The state of Africa’s population: Socio-demographic trends and challenges’, Institute for Futures Research, 2012, http://www.ifr.sun.ac.za; Mubila, M., ‘Briefing notes for African Development Bank’s long-term strategy: Briefing 4 – Africa’s demographic trends’, African Development Bank, March 2012, http://www.afdb.org; ‘The middle of the pyramid: dynamics of the middle class in Africa’, African Development Bank, 20 April 2011, http://www.afdb.org; ‘The rise and rise of the African middle class’, Deloitte, Deloitte on Africa, 20 April 2011, https://www.deloitte.com.
(24) ‘Environmental requirements and market access: Preventing green protectionism’, World Trade Organisation, 2012, http://www.wto.org; Erixon, F., ‘The rising trend of green protectionism: Biofuels and the European Union’, European Centre of International Political Economy, 2012, http://www.ecipe.org.
(25) Salvatore, D., 2007. International economics. John Wiley & Sons: Hoboken.
(26) Ibid.
(27) Ghanem, H., et al., 2011. The state of food insecurity in the world. Food and Agriculture Organisation of the United Nations: Rome; Von Grebmer, K., et al., 2012. Global hunger index 2012. International Food Policy Research Institute: Bonn.
(28) Bruinsma, J., 2003. World agriculture: towards 2015/2013. Earthscan Publications: London.
(29) Bloom, D., Canning, D. and Sevilla, J., 2003. The demographic dividend: A new perspective on the economic consequences of population change. RAND: Arlington.
(30) Ibid.
(31) Osei, K., ‘Africa’s economy surges as middle class grows: can free markets meet demand?’, Policymic, May 2012, http://www.policymic.com.
(32) Becker, P., Porter, D. and Spies, F., 2010. Africa: The new frontier for growth. Accenture: Dublin; Prakash, A. and Stigler, M., 2012. Food and agriculture organisation of the United Nations statistical yearbook 2012. Food and Agriculture Organisation of the United Nations: Rome.
(33) Ibid.
(34) Haldenwang, B., ‘The state of Africa’s population: Socio-demographic trends and challenges’, Institute for Futures Research, 2012, http://www.ifr.sun.ac.za.
(35) Diener, E. and Tay, L., Personality processes and individual differences: Needs and subjective well-being around the world. Journal of Personality and Social Psychology, 101(2), pp. 354-365; Drinnien, B., Irwin, D. and Simons, J., 1987. Psychology - The search for understanding. West Publishing Company: New York; Hayashi, C., et al., 2012. Global risks 2012. World Economic Forum: Geneva; Roxbrugh, C., et al., ‘Lions on the move: The progress and potential of African economies’, McKinsey & Company, 2010, http://www.mckinsey.com.
(36) Pendleton, L., et al., ‘Green economy in a blue world’, United Nations Environment Programme, 2012, http://www.unep.org.
(37) Allen, C. and Clouth, S., ‘A guidebook to the green economy’, United Nations Department of Economic and Social Affairs, Division for sustainable development, August 2012, http://www.uncsd2012.org.
(38) Farmer, T., et al., 2012. The state of world fisheries and aquaculture 2012. Food and Agriculture Organisation of the United Nations: Rome; Prakash, A. and Stigler, M., 2012. Food and agriculture organisation of the United Nations statistical yearbook 2012. Food and Agriculture Organisation of the United Nations: Rome.
(38) Ibid.
(40) Ibid.
(41) Farmer, T., et al., 2012. The state of world fisheries and aquaculture 2012. Food and Agriculture Organisation of the United Nations: Rome.
(42) Prakash, A. and Stigler, M., 2012. Food and agriculture organisation of the United Nations statistical yearbook 2012. Food and Agriculture Organisation of the United Nations: Rome.
(43) Ibid.
(44) Ibid.
(45) Farmer, T., et al., 2012. The state of world fisheries and aquaculture 2012. Food and Agriculture Organisation of the United Nations: Rome.
(46) Ibid.
(47) Ibid.
(48) Ibid.
(49) Ibid.
(50) Ibid.
(51) Ibid.
(52) Prakash, A. and Stigler, M., 2012. Food and agriculture organisation of the United Nations statistical yearbook 2012. Food and Agriculture Organisation of the United Nations: Rome.
(53) Farmer, T., et al., 2012. The state of world fisheries and aquaculture 2012. Food and Agriculture Organisation of the United Nations: Rome.
(54) Ibid.
(55) ‘Depths of bounty’, The Economist, 2 March, 2009, http://www.economist.com; ‘The promise of a blue revolution’, The Economist, 7 August 2003, http://www.economist.com.
(56) Farmer, T., et al., 2012. The state of world fisheries and aquaculture 2012. Food and Agriculture Organisation of the United Nations: Rome.
(57) Ibid.
(58) ‘The promise of a blue revolution’, The Economist, 7 August 2003, http://www.economist.com.
(59) ‘Report of the United Nations Conference on Sustainable Development’, United Nations, June 2012, http://www.uncsd2012.org.
(60) Farmer, T., et al., 2012. The state of world fisheries and aquaculture 2012. Food and Agriculture Organisation of the United Nations: Rome.
(61) Pendleton, L., et al., ‘Green economy in a blue world’, United Nations Environment Programme, 2012, http://www.unep.org.