Department of Agricultural Economics

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Browsing Department of Agricultural Economics by browse.metadata.advisor "Brink, Danie"

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    Feasibility study for the development of an integrated mariculture industry in Diamond Area I, Oranjemund, Namibia
    (Stellenbosch : Stellenbosch University, 2009-03) Le Roux, Gert; Brink, Danie; University of Stellenbosch. Faculty of AgriSciences. Department of Agricultural Economics.
    ENGLISH ABSTRACT: The Division of Aquaculture, Stellenbosch University (SU) was commissioned jointly by Namdeb Diamond Corporation (Pty) Ltd (Namdeb) and the Oranjemund Town Management Company Limited (OTMCo) to assess the aquaculture potential of the mining area at Oranjemund in Namibia. This document provides a proposal for the establishment of a marine finfish (yellowtail, Seriola lalandi) farm at Oranjemund. There appears to be considerable potential and as such this document provides a proposal for the establishment of a marine finfish (yellowtail, Seriola lalandi) farm at Oranjemund. A 5 000 metric ton (mt) yellowtail farm would have a turnover of about N$ 115 million per year and provides direct employment for about 200 people. Oranjemund is located immediately north of the Orange River at the most south-western corner of Namibia, approximately 1000 kilometers southwest of the capital, Windhoek. Namdeb currently operates an alluvial diamond mining operation along a 160 kilometer (km) stretch of the southern Namibia coastline, but is expected to downscale their activities significantly over the next 5 to 10 years. Aquaculture, the cultivation of fish, shellfish and aquatic plants, is the fastest growing food producing industry in the world and has considerable potential to contribute to the establishment of a vibrant post-mining economy in Oranjemund. The marine finfish industry is the most important and valuable aquaculture sector in many countries and is expected to grow significantly over the medium term, thereby also offering exciting opportunities for investment and business participation. The yellowtail farm venture is part of a greater plan to develop a vertically integrated aquaculture cluster at Oranjemund. The yellowtail development will be conducted in two phases, with Phase 1 the establishment of a pilot project to assess and confirm technical and financial feasibility. Phase 2 is the development of a 1 000 mt commercial farm. Other species being considered for development at Oranjemund include abalone (Haliotis midae), turbot (Psetta Maxima), rock lobster (Jasus lalandi) and oysters (Crassostria gigas). Several companies in South Africa are currently actively pursuing aquaculture expansion opportunities along both the west and east coasts of South Africa. Key amongst these is the development of abalone farms at Hondeklip Bay and Port Nolloth in the Northern Cape Province of South Africa by HIK Abalone Farm (Pty) Ltd (HIK) and NewFarmers Development Company Limited (NewF). The development of abalone and yellowtail farming at Oranjemund has been positioned as a further extension of the abovementioned initiative with HIK, NewF and a finfish fingerling supplier as potential operating, investment and development partners. The proposed business structure of the project provides investment opportunities for both institutional and Black Economic Empowerment (BEE) investors as well as employee equity instruments. Namibia’s economic prospects for the future are bright given its stable economic performance, good regulatory framework, and robust private sector. The country has experienced steady growth, moderate inflation, strong external surpluses and low indebtedness over the past several years as a result of generally prudent fiscal policies, a stable political environment, a fairly developed infrastructure, and a strong legal and regulatory environment. Economic growth since independence (1991) has averaged 4.3% per annum, and the World Bank’s Investment Climate Assessment Report currently notes that Namibia has a relatively attractive investment climate. The Government of Namibia has identified aquaculture as a prime priority development area. Both Vision 2030 and the NDP2 documents summon the country’s urgency to develop aquaculture and as such the Namibian Government has created an enabling environment for investment in aquaculture.