By Ousman Gaggigo
Africa-Press – Gambia. Fish prices have been rising steeply in The Gambia over the past few years, increasing the cost of living and increasing poverty. Why is this happening? The Gambia has a vast coastline and a large river running through the entire length of the country. How is it that fish prices have increased so significantly in recent years?
The problem
The biggest source of the problem for the price increase has been the fish processing companies that produce fishmeal and fish oil for exports to China, Vietnam, and other countries. None of their products are supplied to the local market. Moreover, the volume of the fish demanded by these companies is huge relative to the size of the local market. Because they buy the bulk of locally caught fish, the availability of supply in the market is reduced. As a result, local fish prices have been rising significantly.
Aggravating factor 1: Badly Negotiated Agreement
Other factors are aggravating the proximate cause of high fish costs in the country. The stock of fish—particularly close to the shore—is being depleted at an alarming rate. One contributing factor is that the government of The Gambia signed an agreement with Senegal that allows any fishing vessel registered in Senegal to fish in Gambian waters. This agreement was renewed in 2023 for another four years. What it has done is flood Gambian coastal waters with a large number of fishing vessels. These additional vessels supply not only the fish processing companies located in The Gambia but also outside markets. The agreement does not require these foreign vessels to report their catch to Gambian authorities or pay any local taxes. As a result, Gambian authorities have lost any ability to monitor or control overfishing. This has also reduced the average catch of our local artisanal fishermen. So not only is our local supply of fish low and our food security adversely affected—which has pushed prices up—but the livelihoods of local artisanal fishermen are now also threatened.
Aggravating factor 2: Corruption and Lack of Seriousness
As is well known, there has been a significant amount of corruption by public officials in the fisheries sector. These fish processing companies have been documented bribing government officials to look the other way as they overfish and engage in egregious environmental pollution in Kombo South.
In neighbouring countries, there are restrictions on fishing during certain months of the year to allow fishing stock to recover. This is never respected in The Gambia. Nor are the restrictions on juvenile fishing regulated. As a result, a large number of foreign fishing vessels converge in Gambian waters, leading to depletion of our fishing stock. Many public officials have been complicit in allowing for the over-exploitation of our fishing resources just because they receive payments.
Importance of the fisheries sector
The importance of the fisheries sector of The Gambia cannot be overstated. Fish is the most important source of protein in the country and therefore a key component of food security. The sector also employs thousands of people, including significant numbers of women and youth. A visit to any area between Tanji and Gunjur reveals the extent of economic activity in this sector. Because of its ability to generate income for multitudes of Gambians, it serves as an important avenue for poverty reduction.
Importance of foreign direct investment
Foreign direct investment (FDI) is immensely important for economic development. It helps an economy gain access to capital that cannot all be sourced locally. This is especially critical for infrastructure and manufacturing, which are important for the needed economic transformation. FDI can also lead to technology transfer, which every developing country needs. Combined, these effects can contribute to strong economic growth and improve people’s livelihoods. However, there is nothing automatic about these effects. The mere entrance of foreign capital does not magically cause economic development. How authorities manage it matters a great deal.
When seeking FDI for the sector, officials must not lose sight of the ultimate objective for attracting it in the first place. This ultimate objective is the economic advancement of the country. Put differently, FDI cannot contribute to economic development if it is causing food insecurity. The arrival of fish processing companies such as Golden Lead has taken a terrible toll not only on the fisheries sector but also on the entire Gambian economy. These companies have directly contributed to the deterioration in living standards through their adverse effects on fish prices.
Being serious about FDI and food security
FDI is essential in all economic sectors in The Gambia. And welcoming FDI in the fisheries sector does not have to come at the expense of food security and environmental sustainability. The fact that this is happening is simply incompetence and lack of seriousness. Food security is a fundamental human need. Any serious government would ensure that priority is given to it when receiving and evaluating investments in the sector. For instance, in many countries where fishmeal and fish oil companies operate, there are restrictions on how much of local fish supply is diverted from direct consumption into export for foreign market. Such a restriction is essential because no amount of foreign exchange earnings justifies undermining food insecurity.
Our unserious officials are also unsurprisingly nonchalant about the environmental degradation caused by improper waste disposal. Indeed, these were the words of a permanent secretary at the Ministry of Fisheries when confronted by the BBC on pollution by fishmeal and fish oil exporting firms: “Golden Lead has found a market where they can export the waste in liquid form. To where, I don’t know.”
Sufficient environmental regulations and safeguards are on the books to ensure that companies don’t recklessly pollute the environment. However, when a country’s officialdom is full of unserious officials, enforcement is not even an afterthought.
As a result of this lack of seriousness, the social and economic costs of FDI in the fisheries sector have dwarfed whatever employment and foreign exchange earnings are generated.
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