As a vocal member of the UN-compliant Indian Ocean Tuna Commission (IOTC), Seychelles is an important regional player in promoting cooperation to maximise resources and encourage the sustainable development of fisheries, while building capacity in a tough economic environment.

It took just 20 minutes for a golf course proposed by Peter Sinon, Minister of Investment, Natural Resources and Industry, to be shot down by the Seychelles cabinet because it was located in a major water catchment area. This is part of the “delicate tightrope” between obligations to maintain sea and land resources, preserve the pristine environment and manage fish stocks.

Fishing has developed from an industry based on local consumption to one able to compete internationally as a vital pillar of the economy. When it comes to potential opportunities for UK investors, Sinon points to processing ventures for export as a key area to look at.

“Seychelles is regaining its status as the number one fishing industry in the Indian Ocean,” says Sinon. “We tranship the most fish, we have the largest tuna canning plant in the Indian Ocean and we are up to standards with the EU for our exports.” Indeed, the monetary contribution of fishing-related activities to GDP and foreign exchange exceeds that of tourism. Fishery products alone account for over 90% of exports. Moreover, around 80% of the tuna catch in the southwest Indian Ocean is landed or transhipped in the Port of Victoria.

The government intends to maintain the status of its major port, capitalising on some of its distinct advantages. As one of the deepest ports in the Indian Ocean lying outside the cyclone belt, Port of Victoria operates every day of the year and is the closest port of call to some 90% of the region’s tuna fishing.

The European Union, Japan, South Korea and Taiwan have all reached agreements to fish in its Exclusive Economic Zone (EEZ), focusing on the catch of highly migratory species such as tuna, swordfish or sailfish in the open sea.

Going further

Simultaneously, exports have plummeted 30% since 2006. Piracy was the culprit for the biggest dip, when fishing vessels took a brief hiatus over safety concerns in 2008. But numbers have improved since security has been boosted aboard vessels. Further challenges for the fisheries industry are the migration of such pelagic species as mackerel, sardines and anchovies and competition with Papua New Guinea and Mauritius.

Aside from increased competition, the fisheries sector requires significant investment and incurs high operating costs, in relation to its limited productivity and shortage of adequately trained human capital.

To solve issues of inadequate infrastructure, the construction of more landing areas is on the agenda. A 200-metre long quay for tuna vessels is planned in addition to vessel repair facilities. For environmental reasons, it is unlikely that dry docks will be included in future plans, as they may negatively impact the tourism sector.

“In the industrial sector, we need foreign investment,” said Finley Racombo, CEO of the Seychelles Fishing Authority (SFA), “but we also need to get local partnerships involved and we have to put more pressure on that for it to go further. We have to put in place the credit facilities so that people can get access to finance to be involved in these activities.”

Racombo explained that marine aquaculture, which is currently limited to only two production facilities, is another activity with room for development. One producing black-lip oysters and the other producing clams are both located on Praslin, the second largest island in Seychelles.

“We are hoping that by the end of 2012, the plan will be there and there will be a call for investors. We have done scoping around our granitic islands and identified high-value species,” Racombo notes, adding that the SFA is opposed to the introduction of exotic species for farming. Any cultivated species would have to occur naturally.

However it’s not just about catching or breeding more species for consumption. The SFA also aims to reduce waste and discards at sea. The fisheries regulator will make it mandatory that all catch is used, processed and landed as value-added products, which will also require additional facilities and investment.

“We need to continue on this road of progress within the fishing sector, improve on the level of production and come up with the investment, either foreign or local, to have more products and facilities. There is a big future for the Seychelles fishing industry, the potential is there, [and] the area for exploitation vast,” said Racombo.

When Lehman broke…

In early 2006, Lehman Brothers led a consortium under the banner of MWB to buy Heinz’s seafood business and became an owner of Indian Ocean Tuna (IOT), giving the American investment bank a big stake in Seychelles’ largest private employer. Unsurprisingly, Lehman’s demise caused some concern among employees, though upper-level IOT managers were confident of the company’s solid financial position. After buying the company, Thai Union Frozen now runs one of the world’s largest seafood companies with brands such as John West and Chicken of the Sea.