AQUACULTURE INVESTMENT OPPORTUNITIES & INCENTIVES IN SOUTH AFRICA

Operation Phakisa is an initiative of the South African government which aims to implement priority economic and social programmes better, faster and more effectively. The Operation Phakisa: Oceans Economy was launched by His Excellency President J.G. Zuma, in October 2014.

Aquaculture led by the Department of Agriculture, Forestry and Fisheries is one of the six growth areas prioritised to contribute to unlocking the economic potential of South Africa's oceans. This was based on its potential contribution to economic growth and job-creation.

The first year of implementation of the Aquaculture Operation Phakisa saw good progress in terms of its contribution towards economic growth (R29 million) and the total committed investment into the sector was R444 million from the private sector and government. However, there has been a growing need to build and enhance capacity particularly in light of the very limited enabling resources (e.g. budget).

The initiatives and projects listed on the Aquaculture Operation Phakisa dashboard require significant investment, along with improving awareness and access to markets. Investment promotion is key to meeting the target set over the next five years (2014-2019) to grow sector revenue from R0,67 billion to R3 billion and ensure an increase of jobs from 2227 to 15 000.

The aquaculture investment opportunities available are in the form of Aquaculture Development Zones located in various provinces as well current farms registered on the Aquaculture Operation Phakisa which require investment. An Aquaculture Development Zone (ADZ) is an area or site either on land or sea, set aside exclusively for aquaculture use or development. An ADZ may have bulk infrastructure such as a reservoir or water pump to attract investors and these zones are supported by key government policies such as the Industrial Policy Action Plan (IPAP); the draft Agricultural Policy Action Plan and the National Aquaculture Policy Framework.

Investment South Africa (InvestSA) is a division of the Department of Trade and Industry and provides a one-stop-shop service to investors. The core mandate of InvestSA is to increase the quality and quantity of foreign and domestic direct investment into South Africa, by marketing and promoting investment into key high yielding growth sectors of the South African economy. The Department of Trade and Industry offers the following incentives for the aquaculture sector:

1.      Aquaculture Development and Enhancement Programme (ADEP)

2.      Critical Infrastructure Programme (CIP)

3.      12I Tax Allowance Incentive