LIBERIA: FISHERIES UPDATE HIGHLIGHTS POTENTIAL FOR GROWTH

UNCLAS SECTION 01 OF 02 MONROVIA 000311

SIPDIS

E.O.12958: N/A
TAGS: EFIS ECON ETRD PGOV LI
SUBJECT: LIBERIA: FISHERIES UPDATE HIGHLIGHTS POTENTIAL FOR GROWTH

REF: 07 MONROVIA 1070


1. SUMMARY: The fisheries sector has great potential for increased
production and employment, but Liberia continues to import roughly
twice the amount of fish it produces. According to the 2008 Annual
Report from the Bureau of National Fisheries (BNF),profit margins
for fish production are relatively high, but domestic growth in the
sector is hampered by unlicensed fishing, lax regulatory
enforcement, inadequate infrastructure and lack of capital. USG
agencies have identified seafood as a high-potential export sector
but so far domestic industry is lagging due to the lack of roads and
electricity, inadequate standards and regulations, and non-existent
maritime surveillance and control. END SUMMARY.


2. According to the Bureau of National Fisheries 2008 Annual
Report, Liberia imported 8,100 metric tons of fish in 2008, roughly
twice the amount (4,095 metric tons) it produced. The BNF estimates
the industry generated $12-$15 million in revenue, or roughly 10% of
agricultural GDP. While the volume of domestic production is
divided roughly evenly between commercial fishing vessels and
artisanal production (with a negligible amount from aquaculture),
artisanal production is the major source of employment. The BNF
reports there are 13,000 fishermen operating 3,500 canoes and 18,000
fish processors (mostly for smoked fish) living in 139 coastal
communities. The BNF issued a total of 83 fishing licenses to 31
industrial vessels in 2008. (Note: Statistics remain haphazard.
The BNF report does not show figures for previous years, but this
appears to reflect a sharp drop in domestic production since 2006.
At that time, domestic production was 6,373 metric tons, while local
consumption totaled 15,820 metric tons, thanks to imports of 9,447
metric tons. End note.)


3. In January and February 2008, the Ministry of Agriculture
conducted a Livelihood Survey of fishing communities and found that
the fishing industry enjoyed substantial profit margins from cheap
labor, weak regulations, and poor tax enforcement. The report
identified the lack of access to capital by fishermen as the main
hindrance to developing the sector. Other challenges include
outdated and improper regulations for handling, processing and
storage; substandard safety and hygiene facilities, and overfishing
by illegal and unregistered vessels. (Note: Lack of capital is the
most common complaint by Liberian businesses in all sectors. The
reasons are complex but include a still-fragile financial system,
weak business skills, and a culture of non-repayment for loans,
abetted by a lack of effective credit rating or ability to enforce
foreclosure through the legal system. End note.)


4. In 2008, the BNF began work on a comprehensive fisheries
development proposal under the sub-regional Fisheries Commission for
the West Africa Regional Fisheries Project supported by the World
Bank. The BNF also initiated discussions with the Government of
Italy for a project to commercialize fishing sector activities in
Grand Kru and Montserrado counties. The BNF was allocated a budget
of $83,600 and 24 positions in the FY2008-09 budget (up from nothing
the previous year),and charged with:

-- Establishing a monitoring, control and surveillance system on
vessels fishing in Liberian territorial waters.
-- Ensuring access of Liberian fisheries products to external
markets.
-- Supporting aquaculture rehabilitation.
-- Improving the livelihood of fishermen.


USG Assistance
--------------


5. USAID's West Africa Trade Hub has also identified seafood as a
likely export sector. However, so far there has been no Liberian
firm approaching export-readiness. The U.S. African Development
Foundation (ADF) has identified the Robertsport Fishmongers
Association (RFA) as a client with potential to increase Liberia's
food security, employment, and entrepreneurial ability. Before the
war, the RFA was the major source of fish for Liberia. Although
ADF's investment has resulted in purchase of the largest fishing
canoe in Liberia, and greatly increased catches (about 3.5 tons per
voyage),the RFA suffers from governance issues, has only the
ADF-funded fishing canoe and, due to lack of processing or
transportation options, can produce only dried fish.


6. A 100 lb. bag of dried fish sells for about LD1,322 (about
US$22.00),or over US$700 for the entire catch. Over an 84-day
fishing season, that level of catch would bring in about US$60,000
for the RFA. However, in addition to providing fuel and other
supplies for the fishing vessel, that money has to be shared among
the thousands of fishermen and fishmongers (who dry and sell the

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catch).


7. The USG is also assisting the GOL to develop a Coast Guard which
will have maritime surveillance and control as part of its mandate.
However, the Coast Guard is unlikely to be operational before the
end of 2010. A GOL interim effort to use a private firm to monitor
fishing areas in return for a percentage of the collected fines
failed as ourts refused to charge captured vessels with illegal
fishing.


8. COMMENT: Liberia's fisheries authority is seeking to improve
regulatory oversight and enhance monitoring and surveillance
capacity following years of illegal, unreported and unregulated
fishing activities that have damaged the fishing industry and raided
Liberia's abundant marine resources. The BNF has not received a
large share of resources from its portion of the Ministry of
Agriculture budget, and donors thus far have not targeted the sector
for assistance. The sector remains crucial for rural employment and
nutrition, but rebuilding a self-sustainable (not to mention
export-oriented) industry is unlikely to happen anytime soon.


ROBINSON