Key Factors Driving Financial Decline in the Fishing Industry

The fishing trade in Tanzania remains highly uneven, with the Lake Zone dominating the industry while coastal regions struggle to match its success. According to the latest Consolidated Zonal Economic Performance Report for the quarter ending September 2024, the Lake Zone accounted for 36% of the total value of fish sold in registered markets in September 2024, compared to just 20.8% for the Southeastern coastal regions, despite their direct access to the Indian Ocean. While the Lake Zone recorded Sh66.5 billion in fish trade value, the Southeastern zone which includes regions like Mtwara, Lindi, Tanga and parts of Coast Region-generated only Sh38.4 billion. According to the report, the Lake Zone recorded 5,822.7 tonnes of fish traded in September 2024, compared to 6,835.6 tonnes from Southeastern coastal regions. Experts argue that this disparity is driven by multiple factors, including differences in fishing infrastructure, market access and government policy support. For his part, a lecturer at Fisheries Education and Training Agency (FETA), Mr Hassan Mhando, said the dominance of the Lake Zone in the fishing trade is largely due to the nature of its fishery resources. "Freshwater fish, particularly from Lake Victoria, have high local and regional demand. Species such as Nile perch and tilapia fetch premium prices in domestic and export markets," he said. Another lecturer at FETA, Mr August Shirima, pointed out that coastal fishing in Tanzania faces structural and logistical challenges that limit its competitiveness. "Unlike the Lake Zone, where fishing is more organized and supported by strong value chains, coastal fishing remains largely informal and dominated by small-scale fishers who lack proper equipment," he said. He noted that deep-sea fishing. which could be a game-changer for coastal regions, remains underdeveloped due to a lack of investment in modern fishing vessels and cold storage infrastructure. "Most fishers along the coast still rely on traditional wooden boats, which restrict them to nearshore waters where fish stocks are increasingly depleted." Another critical factor contributing to the dominance of the Lake Zone is its well-established trade links with neighbouring countries. A senior lecturer in aquatic ecology and Head of the Department of Aquatic Sciences and Fisheries at the University of Dar es Salaam, Dr Rashid Tamatamah, explained that Lake Victoria's proximity to key export markets gives it a competitive edge. "Freshwater fish traders have established strong networks with buyers in Kenya, Uganda and even beyond to DR Congo. This consistent demand ensures stable prices," he said. Meanwhile, coastal fishers mainly rely on local markets, which are often saturated, leading to price volatility. The absence of well-struc-tured export pathways for marine fish limits growth.

May Is knocking the door and…: Argentina’s fishing industry is currently facing one of its worst crises in years, with over 100 vessels inactive and not going out to sea. This includes both the shrimp freezer fleet and the fresh fish fleet, especially in the port of Mar del Plata. Key Reasons: • Falling international prices: Key exports like frozen shrimp and hake fillets have dropped in value, especially in major markets like Brazil. • High operational costs: Crew costs in Argentina represent around 60% of a vessel’s production cost per trip, compared to 33% internationally. Additional taxes and increased fishing fees have further reduced competitiveness. • Outdated reference prices: The official prices used for export settlements do not match the current market reality, worsening financial difficulties. Impact: • A 35% drop in fish landings was recorded in Mar del Plata in January 2025, equivalent to 5,000 fewer tons.

Despite the ambitious reform of the common fisheries policy (CFP) adopted in 2002, there has been little improvement in the situation of Community fishing activities. Many fish stocks are still being overexploited. The fishing fleet remains oversized and, in a quest for profitability, it is trying to push back the frontiers of its activities, by fishing over greater distances, at greater depths, and for smaller fish. The financial problems have been exacerbated by rising costs, pressure from imports (60% of consumption) and the increasing power of mass marketing.The crisis the sector is experiencing is due to a combination of factors. Fishing activities are suffering from reduced catches as a result of the poor situation of fish stocks and restricted access to certain stocks. The combined effects of overcapacity and the low level of many stocks are reflected in poor economic returns in the catching sector and low profitability in many fleets.

Climate change is driving salinity changes in our waters, leading to a significant shift in fish populations. Costly commercial species are dwindling, replaced increasingly by less valuable "trash" fish. This alteration not only disrupts aquatic ecosystems but also imposes economic hardships on fisheries. The result is a decreased economic return from our waters, challenging the livelihoods of those dependent on these resources. As salinity continues to fluctuate, the stability of marine economies and food sources faces increasing uncertainty.