Investment Flow in the Artisanal Fishery Value Chain in Ghana

Abstract

The Ghana artisanal fishery sector continues to experience declining trends in catches and high post-harvest losses because of overinvestment in fishing inputs and underinvestment in value addition inputs, expressed as US$196,546,350 and US$ 4,849,204. The overinvestment in fishing input is putting excessive pressure on the marine fisheries while economic returns on the quantity of fish produced are minimal. The situation has forced processors to rely on imported fish to sustain their livelihood. Yet, the Government of Ghana contributes to the effort in the harvesting sector through subsidizing an estimated US$48,920,565 of fishing inputs. Industrial trawlers add to the situation by illegally catching 50,000 metric tons of small pelagics which is more than landings by artisanal fishers in 2017. To better understand the drivers for investment, this study examines the factors that determine investment among the actors in the artisanal value chain. Both qualitative and quantitative data were collected from 90 fishery actors using questionnaires. Three main actors were studied: canoe operators, fish mummies and fish processors. Income generation to support household is the major factor that encourages canoe operators to invest in bigger and additional canoes and illegal gear. Declining catch volume and revenue encourages fish mummies to invest in fishing input whereas fish processors invest in outdated capital goods because they lack capital for investment in improved efficient technologies. Addressing the challenges in the artisanal sector will require the government to enforce the law and redirect subsidies to the post-harvest sector where value is added to the fish.