Government has launched an R800-million aquaculture programme, offering cost-sharing grants of up to R40-million per company in a bid to stimulate investment and create more jobs in the sector.

The Agriculture Development and Enhancement Programme (Adep), which was launched in Cape Town on Thursday, would offer a reimbursable cost-sharing grant of up to R40-million for machinery and equipment, bulk infrastructure, commercial vehicles and work boats and for activities that would boost competition in the industry.

Trade and Industry Minister Rob Davies said there were “enormous” untapped opportunities in South Africa’s aquaculture industry.

Abalone, mussels, oysters and freshwater fish were being farmed, but the pace of growth in the industry has been slow. 

Davies said South Africa produced less than 1% of Africa’s output.

In 2011, South Africa produced 7 686 t of fish and fish products through aquaculture.

This compares to Egypt’s 900 000 t and Nigeria’s 200 000 t.

More than one-quarter of South Africa’s production came from abalone.

Davies challenged the industry to push its production rate up to 50 000 t/y.

“We are right at the bottom of the curve and we need to move rapidly in the next few years. The growth could be dramatic,” he said.

The shift from ocean fishing to aquaculture has been significant.  

“There’s been a major change globally in the production and consumption of aquatic products. Nearly half of the total fish products produced in the world now comes from aquaculture. It’s driven by the reality that world fish stocks are being grossly depleted,” said Davies.

The Adep aimed to sustain and create jobs, increase production, broaden participation by broad-based black economic-empowerment (BBBEE) companies and encouraged companies to set up farms in different areas of the country.

Department of Trade and Industry head of product development Tumelo Marivate said government would pay the grants as soon as the entities came into production. She said a total of R800-million had been set aside for the grant and interest had been shown by four investors so far. 

Davies called on people to grasp the opportunity. “We will incentivise and support you in taking the risks and ask you to move into this industry with us.” He said additional advantages would be offered to companies investing in industrial development zones (IDZs).

Davies said an interesting project had been launched at the East London IDZ, where kabeljou – otherwise known as ‘dusky cob’ - was being cultivated. Similar projects could be launched at the Saldanha IDZ.

“Clearly there are enormous opportunities in terms of the production of protein, the development for export activities, the creation of employment and the development of skills in aquaculture,” he noted.

Most of South Africa’s aquaculture farms are in the Western Cape. In 2010, the Western Cape had 20 farms, the Eastern Cape nine, the Northern Cape three and KwaZulu-Natal one.

Abalone makes up the largest slice of aquaculture production, followed my mussels and oysters.

Freshwater fish species include trout, catfish, mullet, largemouth bass, marron crayfish and Atlantic salmon.

Trout is the most cultured freshwater species in South Africa, with rainbow trout producing nearly 1 000 t.  But the department said trout faced stiff competition from imported salmon from Scotland and Norway, much of which is subsidised.

Globally, China is the world leader in the field, producing 70% of the world’s aquaculture.