The Workshop reviewed in some detail ways and means of financing aquaculture development programmes. At present, most of the aquaculture activities in the participating countries are financed by governments. Being mostly of an experimental and demonstration nature, these activities will continue to be financed by governments and larger outlays will be required to undertake the expanded programmes of research, extension and training envisaged in the national development plans. Experimental and demonstration projects can be largely self-supporting, if provision can be made for the use of sale proceeds obtained to meet operational expenses and eventually for financing expansion of activities.
Production programmes integrated with rural development projects may, in many cases, receive heavy financial support from governments. In large commercial-type production programmes, other financing arrangements may have to be considered. Financing and credit for aquaculture could follow very closely the procedures adopted in agriculture development, In fact, finance for aquaculture development is presently obtainable in many countries of the region through national Agricultural Development Banks or Rural Development Banks on varying terms of lending and repayment.
Large-scale aquaculture may, in many areas, be developed through cooperatives and in such cases financial assistance for production and marketing may become available from the cooperative sector. In this, as well as in all other forms of financing, the crucial importance of managerial staff with special training in fund management was recognized.
Some of the external sources of funding for aquaculture development are the World Bank, the FAO/Private Bankers Group and the Regional Development Banks. The World Bank's emphasis on support for integrated rural development is of special significance, as much of the aqua-culture in Africa would be in the rural sector and integrated with rural and community development programmes.
Foreign capital could be attracted for large-scale aquaculture, especially export-oriented production programmes, through joint ventures. The Workshop discussed the measures to be taken to protect the interests of the host country in joint ventures and also considered the advantages and disadvantages of involving parastatal companies in aquaculture development,
The Workshop noted with concern the long delays that often occur in the negotiation of loans for fishery development and felt that one of the major reasons for these is the lack of adequate feasibility studies covering all the technical and economic aspects of the projects, Most countries require external assistance for such studies and the Workshop felt that one of the main services to be provided by the Aquaculture Development and Coordination Programme (ADCP) should be in this field. FAO/UNDP field projects, where they exist, could also assist in project identification and preparation of loan requests.
Credit arrangements for farmers have to be linked to extension services including marketing, to ensure that the credit is properly used and repayment becomes possible through increased income of the farmers. In some of the countries, problems related to land settlement hamper the procurement of credit requiring security, and this would need the special attention of governments.
In view of the large investments required to implement the national development plans, the Workshop urged the participating governments to give early attention to the identification of appropriate internal and external sources of financing for the short-term, medium-term and long-term activities contemplated. Suitable arrangements have to be made for obtaining loans as required for the orderly progress of production programmes.
In addition to credit and financial facilities, the Workshop also reviewed some of the other measures needed to enhance investment and operating climate for aquaculture development, The provision of appropriate infrastructure, research backstopping, extension and training services, and institutional arrangements supporting aquaculture development, were considered to be of special importance. The assistance of multidisciplinary expert teams for identifying development opportunities, formulating projects, and preparing feasibility studies could greatly contribute to speedier investment and implementation of development programmes.
Aquaculture would benefit from the same type of incentives as provided by governments for agriculture development. In the initial phases, it is of particular importance to make the required inputs, such as feed, seed, fertilizers, etc., available at low costs and, if necessary, at subsidized rates. Similarly, land and water should be made available on easy terms. Development could furthermore be stimulated and additional finance attracted if investments in aquaculture were to enjoy tax holidays, reduced tax rates for re-invested profits, and similar preferences. It may also eventually become necessary to introduce measures designed to limit entry into the industry in order to give the required security for the investor. For export ventures special bonuses may be introduced. The duty-free import of necessary equipment not available on the domestic market at competitive prices should be ensured.
It was emphasized that there existed generally the need to upgrade the image of aqua-culture industries and the status of the aquaculturist, providing him with adequate career opportunities. National awards or other forms of recognition of outstandingly successful aquaculture ventures were also proposed.
