INSIGHTS ON ERITREA'S STATE-OWNED FISHING INDUSTRY

C O N F I D E N T I A L ASMARA 000488

SIPDIS

DEPARTMENT FOR AF/E,
LONDON AND PARIS FOR AFRICA WATCHERS

E.O. 12958: DECL: 10/06/2018
TAGS: EFIS PGOV ECON ER
SUBJECT: INSIGHTS ON ERITREA'S STATE-OWNED FISHING INDUSTRY

REF: ASMARA 277

Classified By: CDA Melinda C. Tabler-Stone for Reason 1.4 (d)


1. (SBU) Summary: Eritrea will sustainably harvest 80,000
metric tons (MT) of fish per year, according to Minister of
Fisheries Ahmed Haj Ali. Eritrea recently built three port
facilities and purchased eight industrial fishing vessels and
put them under the control of the parQatal NatQal Fishing
Corporation, which will have monopoly rights to Eritrea's
fishing grounds. Fishing will initially be for domestic
consumption, but Eritrea hopes to export some of its catch
eventually. End Summary.

NEW PORTS AND VESSELS
--------------

2. (SBU) Ali told the ambassador that three new small-scale
fishing ports were recently built in towns between the two
main ports of Massawa and Assab, including Tio, 130 miles
southwest of Massawa. Each port facilQ is outfitted with
new jetties, industrial-sized ice makers to keep the fish
fresh, processing facilities, and generators for electricity.
These new facilities will accommodate only small-scale
fisherman. (Note: Post received accounts of small fishing
vessels banned from leaving the port of Assab due to the
fishermen trading fish in Aden, Yemen for hard currency and
commodities not available in Eritrea. Emboffs have seen
dozens of similar boats in Massawa that showed no indication
of recent use. End Note.)


3. (SBU) Ali also said the Government of the State of Eritrea
(GSE) recently purchased eight industrial fishing vessels
from Italy, but that the boats had not yet been put to use
due to lack of skilled manpower. To alleviate this shortage,
students at the College of Marine Science and Technology in
Massawa are currently being trained for employment in the
fishing industry. The eight boats will eventually operate
out of Massawa, but Ali did not say when operations would
begin. The state-owned Eritrean Fishing Corporation will
monopolize fishing in Eritrea's territorial waters, with some
allowances given to Eritrea's small-scale fisherman.

FISHING STOCKS
--------------

4. (SBU) Eritrea's fisheries stocks hold 200 commercial
species, although no species is dominant. Snapper, grouper,
and Spanish mackerel are present throughout the year, with
sardines and anchovies arriving seasonally. Ali said the
Ministries of Fisheries and Tourism are cooperating to
harvest enough fish for domestic consumption and export, yet
provide scenic diving fQEritrea's infant tourist industry.
Ali estimated that Eritrea can sustainably harvest 80,000 MT
of fish annually from its waters.

YEMENIS AND EGYPTIANS NEED NOT APPLY
--------------

5. (SBU) Ali told the ambassador that although Egyptian
fishermen were previously given licenses to fish in Eritrea's
waters, the agreement was terminated. Ali also said Yemeni
fishermen were still poaching in Eritrean waters. The
Egyptian and the Yemeni embassies in Asmara said the GSE was
not currently holding any of their fishermen (reftel).


6. (C) Comment: The GSE has a miserable track record for
operating businesses and industries. They have run their
Coca Cola, beer, glass, cement, shrimping, and numerous other
industries into the ground. The GSE grossly mismanaged
Eritrea's construction and import/export monopolies, and have
yet to fulfill a seven-year-old plan to fully open a free
trade zone in Massawa. The government's promises to bring
eight industrial fishing vessels online might be a source of
hope for the food-deprived country, but iQs difficuQto
imagine the GSE's attempt to manage a large-scale fishing
industry will succeed.
TABLERSTONE