The Workshop reviewed sources of financing and credit arrangements available at the national, regional and international level for aquaculture development programmes and investments into commercial production. Aquaculture being in its initial stages in most countries, an important part of the required funds will have to come from fiscal resources of the respective governments. It was noted that in the economic development plans of a number of countries some provisions for specific development programmes in aquaculture have been included, but that increased budgetary allocations will be needed in the future in order to stimulate more rapid development.
National financing institutions exist in all countries to foster agricultural, industrial and general economic development, and it is expected that funds required for investments in aquaculture production programmes would also be forthcoming from this source. Discussions indicated that, generally, there was a wide range of potential sources of financing available in most countries but relatively little investment had so far been channelled into aquaculture and it was not certain in all cases that these would actually be available at favourable terms for aquaculture projects. It would be desirable to study past investments into aquaculture undertakings in the region and evaluate factors responsible for successes and failures.
It was felt that aquaculture development could benefit on a rapidly increasing scale from funds available from national financing agencies, if well prepared feasibility studies were presented to them. Apart from demonstrating the commercial feasibility of aquacultural programmes these studies should serve Co enhance the understanding among credit-providing institutions of the requirements of the industry and of the socio-economic benefits which can be derived from aquacultural investments. This would also contribute to overcoming the reluctance of private capital from banks or other sources to enter aquaculture enterprise, which so far has shyed away because of potential risks. It was noted that some unsuccessful initial projects had hampered more rapid development of aquaculture in some countries. Careful planning of individual projects on the basis of detailed feasibility studies and timely organization of the required institutional framework were pre-requisites for increased funds becoming available for aquaculture development and a guarantee for sustained growth in this sector.
It was noted with satisfaction that regional and international development banks, notably the Inter-American Development Bank, the Central American Bank for Economic Integration and the Caribbean Development Bank, have shown increasing interest in aquaculture development in the region. For some projects funds had already been approved and some others were under consideration. It was hoped that the aquaculture industry could count to an increasing extent on financial support from these sources. Considering the socio-economic objectives of most aqua-cultural development programmes and the present nature of aquaculture as a new industry, it was also hoped that aquacultural projects would in most cases be eligible for soft loan arrangements, at least during the start-out period of new ventures.
The Workshop recognized the need for technical assistance and advice in identification and formulation of bankable projects and loan requests which should be available from the Aquaculture Development and Coordination Programme and other FAO/UNDP projects. It was also suggested that greater use should be made of the FAO Bankers Programme, in which a number of Latin American banks participate, for the preparation and financing of large-scale projects in aquaculture.
Participants from some countries reported on planned or already existing joint ventures in shrimp and shellfish farming. The Workshop recognized the potentially important role which such agreements could play in aquaculture development, particularly for export-oriented ventures, and noted the consultation mechanisms existing between interested companies in all parts of the world and the FAO Fishery Industries Division, which could be used for facilitating such partnership arrangements.
Provision of credit to small-scale farmers and family-type operations requires particular attention in the region, bearing in mind the important role aquaculture is to play in rural development programmes. Funds can be channelled through cooperative societies, local government organizations and community development programmes, but it is important that these credit facilities are linked to effective aquacultural. extension services and marketing arrangements.
Apart from financial and credit facilities, aquaculture development in most countries should benefit from various other measures introduced as incentives for agriculture and for the healthy development of infant industries. It was noted that in most countries such provisions as tax holidays, duty-free import of material and equipment, export bonuses for non-traditional products, supply of feed and fertilizers at reduced costs, etc., would also be applicable to aquaculture undertakings. Special incentives may, however, be necessary to give the required impetus to aquaculture in its initial phase; examples mentioned in this respect were the provision of insurance coverage and credit guarantees, supply of seed and fingerlings, low-cost hire of heavy equipment for construction of fishponds, and distribution of fertilizers.
