Farmed fish

Farmed Fish Production

Photo courtesy of Kegloh Atsou Kossi
Taken at LOFTY FARM, Nangbéto, during an official visit (2022)

Farmed Fish Production

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Agriculture
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
20% - 25% (in ROI)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
< USD 50 million
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) No Poverty (SDG 1) Life Below Water (SDG 14)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Gender Equality (SDG 5) Life on Land (SDG 15)

Business Model Description

Produce farmed fish, including high-quality tilapia, using techniques that ensure adequate oxygenation of water through water renewal or natural currents, including by cage farming in rivers, for the local market and to meet consumer needs and health concerns. Take advantage of support provided through Fish Sector Investment Action Plan 2024-2028, such as access to aquaculture feed mills or modern hatcheries.

Expected Impact

Contribute to food security, support the reduction of imports of fish and enhance workers' well-being.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Togo: Maritime
  • Togo: Centrale
  • Togo: Plateaux
  • Togo: Kara
  • Togo: Savanes
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Food and Beverage

Development need
Poverty is slowly decreasing with a rate going from 55.1% to 45.5% between 2015-2019, far from a complete elimination of extreme poverty targeted for 2030. In rural area, the poverty rate is 76.1% (1). Chronic, acute malnutrition and underweight affect respectively 27.5%, 6.5% and 16% of children under five years old particularly in the regions of Savanes, Kara and Plateaux (21).

Policy priority
Making agriculture a real engine of growth and job creation is one of Togo's ten strong ambitions (2). The Agricultural Plan aims to “modern, sustainable and high value-added agriculture serving national and regional food and nutritional security; a strong, inclusive, competitive economy that generates decent jobs and stable by 2030 and reduction of poverty and rural vulnerability (21).

Gender inequalities and marginalization issues
Women are poorly empowered and confined to agricultural activities. Mostly women (53.46% compared to 46.54% of men) carry out agricultural activities, notably in the activities of weeding, sowing, harvesting, storage, processing and marketing of products. The agricultural sector, with its low productivity and low income, plunges agricultural workers, particularly women, in high levels of poverty (1).

Investment opportunities introduction
Investment opportunities are due to both the expansion of local and foreign markets for many agricultural value chains and the land reform Togo initiated, which establishes equal rights of access to land for both women and men. Food crops have significant growth and employment potential, while livestock products and cash crops have additional growth effects (3).

Key bottlenecks introduction
Several constraints affect agricultural value chains like, limited production capacities to satisfy expanding and competitive markets, financing constraints for farmers, lack of long-term credit, and transport costs and constraints. Land issues also exacerbate the situation of farmers, particularly women and young people (3).

Sub Sector

Food and Agriculture

Development need
The agricultural sector does not provide sufficient production. Various agricultural subsectors are involved, including crop, livestock, agri-food industries as well as fish production (21). Togo's exports of fish crustaceans, molluscs and other aquatic invertebrates reached USD 0.37 million in 2022 compared to imports of USD 44.50 million during the same year (4).

Policy priority
Togo has a Fish Sector Investment Action Plan 2024-2028 aimed at increasing national fish production by 25% by 2028 in order to contribute to covering national needs. This involves increasing the productive capacity of the sector, strengthening the technical and organizational capacities of the actors in the sector as well as its governance (22).

Gender inequalities and marginalization issues
Women are engaged in individual activities to the point where the majority of them are in the informal sector (54%), commerce and services (53.46%) as well as agricultural activities (5). If the participation of women is not given in fish farming, they are present in the processing (smoking, salting, drying, frying), and marketing of fish products (22). Livestock properties were held at 19.9% ​​among women compared to 80.1% among men in 2015 (19).

Investment opportunities introduction
With a view to encouraging exports, Togo has engaged in liberalization characterized by measures to harmonize legislative and regulatory frameworks with treaties and agreements. Making way for the private sector, Togo inaugurated the Adétikopé Industrial Platform dedicated to the transformation of Togo's natural resources and agricultural exports (6).

Key bottlenecks introduction
Fish farming is faced with difficulty in supplying water retention dams and ponds; the seasonal drying up of certain bodies of water; the multiple use of certain bodies of water; siltation of water bodies; insufficient feed mills for manufacturing fish feed; and the non-existence of certification of fish farms to guarantee the quality of the products (22).

Industry

Meat, Poultry and Dairy

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Farmed Fish Production

Business Model

Produce farmed fish, including high-quality tilapia, using techniques that ensure adequate oxygenation of water through water renewal or natural currents, including by cage farming in rivers, for the local market and to meet consumer needs and health concerns. Take advantage of support provided through Fish Sector Investment Action Plan 2024-2028, such as access to aquaculture feed mills or modern hatcheries.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

< USD 50 million

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

Togo imports 78,294 tonnes of fish (2022).

The production of 5,000 tonnes per year (25, 26) represents 6.4% of imports of fish crustaceans, molluscs and other aquatic invertebrates estimated at 78,294 tonnes in 2022 (4).

Fish farm activities vary depending on the size of each farm. As two examples from Togo, the Lofty Farm and the PARAKANA supply up to 5,000 tonnes per year at the price of USD 3 kg of fish, totalling USD 15 million per year (25).

Indicative Return

ROI
Describes an expected return from the IOA investment over its lifetime.

20% - 25%

Projects such as TILAPORC and the promoter company “Le Retour au Jardin d’Eden” for fish farming could have respective approximate capital return rates of 19.3% and 23.5% due to their respective capital recovery rates of 4 years and 3 months and 5 years and 2 months (27, 28).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

The TILAPORC company with an investment of USD 256,000 in fish farming envisages a recovery period of the invested capital in 4 years and 3 months. For its part, the fish farming project with a total cost of USD 115,607.67 envisages a recovery period of the invested capital of 5 years and 2 months (27, 28).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

< USD 500,000

Market Risks & Scale Obstacles

Capital - Requires Subsidy

Farmed fish production encounters difficulties in accessing water due to the steepness of certain rivers and streams that do not favour the supply of dams and water reservoirs and ponds, causing the seasonal drying up of certain bodies of water and courses (22).

Business - Supply Chain Constraints

Farmed production also suffers from the siltation of certain bodies of water, the high cost of quality aquaculture inputs (fry and fish feed), the lack of feed mills for the manufacture of fish feed, the lack quality control of fish farming inputs, and lack of modern hatcheries (22).

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

National production of fishery products does not cover the ever-increasing needs of Togo, which increased from 86,905 tonnes in 2012 to 105,235 tonnes in 2022 (22). Imports of fish crustaceans, molluscs and other aquatic invertebrates and their preparations were 78,294 tonne sin 2022 (4).

Although one of the most common sources of animal protein, accessible to consumers, the fishing sector does not cover local needs (22). Fish farming is also artisanal while private sector involvement is still limited and dominated by a single company (22, 25).

Gender & Marginalisation

Women are not strongly involved in fish production. They mostly play a role in processing and marketing. The fish processing link is mainly provided by women grouped within the National Federation of Cooperatives of Fish Processors of Togo and freezing companies (22).

The main techniques for processing fish products carried out by women are: smoking, frying, salting, freezing/freezing and drying. The marketing of fish products is mainly done by women in the context of fishmongers for sea fish and river and lake fish (22).

Expected Development Outcome

Production of farmed fish, based on high productivity and quality standards, will provide abundant and nutritionally fish to meet the growing needs of the population and strengthen food safety.

Production of farmed fish will provide better remuneration to workers engaged in the sector and contribute to increased revenues from the sale of fish.

Production of farmed fish will create increased opportunities for the valorisation of fish, particularly into various processed food products, dried, fried, salted or cooked in restaurants, while countering imports.

Gender & Marginalisation

Production of farmed fish improves the remuneration of workers in the fish sector, particularly many women who work there, and allows them to escape precariousness and poverty.

Production of farmed fish improves the technical and financial capacities of women in agricultural activities and allow them to improve their financial assets and capabilities for enterprise and fully seize their opportunities.

Production of farmed fish allows women, including youth, to develop their technical skills on proven processes for processing aquaculture products with increased value added.

Primary SDGs addressed

Zero Hunger (SDG 2)
2 - Zero Hunger

2.4.1 Proportion of agricultural area under productive and sustainable agriculture

Current Value

4,62% in 2021 (1).

Target Value

N/A

No Poverty (SDG 1)
1 - No Poverty

1.1.1 Proportion of the population living below the international poverty line by sex, age, employment status and geographic location (urban/rural)

Current Value

26,6% in 2021 (9).

Target Value

N/A

Life Below Water (SDG 14)
14 - Life Below Water

14.4.1 Proportion of fish stocks within biologically sustainable levels

Current Value

4,000 tons in 2021 (1).

Target Value

N/A

Secondary SDGs addressed

Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth
Gender Equality (SDG 5)
5 - Gender Equality
Life on Land (SDG 15)
15 - Life on Land

Directly impacted stakeholders

People

Workers implementing production of farmed fish based on high productivity will see their well-being improved and their ability to work strengthened. Such success would be likely to attract other people to this promising space and contribute to the fight against poverty.

Gender inequality and/or marginalization

Women and girls employed in the production of farmed fish will be able to increase their production and achieve significant remuneration that can improve their living conditions.

Planet

Actors, companies and workers will implement sustainable production techniques for farmed fish that will protect the environment.

Corporates

Companies engaged in the production of farmed fish will gain increased market shares both domestically generating spin-off effects on related activities agriculture and fish processing.

Public sector

Public authorities, through the supply of inputs for fish farming production, particularly fry, contribute to the strengthening and competitiveness of aquaculture.

Indirectly impacted stakeholders

People

Workers and members of their families working in activities related to the production of farmed fish will find in aquaculture development opportunities for income-generating activities for their well-being.

Gender inequality and/or marginalization

Women, girls and young people will find in the production of farmed fish opportunities to carry out their own activities differently, drawing inspiration from the ways they have learned to earn more.

Corporates

Companies participating in the production of farmed fish will constitute, through their activities, a vector of innovation that can have repercussions on the dissemination of good agricultural practices and the processing of agricultural raw materials, including those from fish farming.

Public sector

Local authorities producing farmed fish will have the possibility of collecting taxes on these activities and those linked to them and deployed in their environment.

Outcome Risks

The development of fish farming in floating cages while providing food to the population could hamper inland fishing activities practiced in the same areas and push traditional fishermen out of work.

The production of farmed fish could cause ecological imbalances, even health imbalances, if the standard rules of quality and sustainability are not respected.

Populations living in the vicinity of large aquaculture development basins could experience water shortages and difficulties in accessing it without excessive costs.

Production of farmed fish can confine women to low-paying activities, and therefore limit their development and well-being.

Impact Risks

High competition among companies in aquaculture for access to fish seed and feed could lead to the disappearance of the least integrated farms, and compromise the achievement of food security.

The technical skills needed to produce farmed fish could risk excluding women and girls with limited professional training.

Impact Classification

B—Benefit Stakeholders

What

Farmed fish production will lead to greater food security, enhance employment opportunities and ensure the development of a large market driven value chain.

Who

Fishers and farmers, the environment, the Interprofessional Fish Industry Council, the National Federation of Aquaculture Coopératives, the Ministry of Agriculture benefit from the production of farmed fish.

Risk

While the model is proven, competition over fish seed and feed and technical skills requires consideration to ensure the quality of water resources for domestic use.

Impact Thesis

Contribute to food security, support the reduction of imports of fish and enhance workers' well-being.

Enabling Environment

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Policy Environment

The Strategic Plan for the Transformation of Agriculture in Togo by 2030 states as objectives to ensure food security; rebalance the agricultural trade balance; improve the level of agricultural income; ensure a high rate of agricultural growth in a sustainable manner, including though fish production (21).

National Agricultural Investment, Food and Nutritional Security Program 2017-2026 was supplemented by specific plans, including that of the fisheries sector essential for food and nutritional security through the Fish Sector Investment Action Plan 2024-2028 (7, 22).

The Fish Sector Investment Action Plan 2024-2028 aims to increase national fish production by 25% by 2028 in order to contribute to covering national needs (22).

Financial Environment

Law 2019-005/PR of January 2019 on the investment code provides for approved companies making a minimum of USD 83,333,333 in new investment, exemptions from duties and indirect taxes or, in the case of imports, other taxes collected (granted for a period of five years) (11). This is the case for equipment and all goods imported for fish farming.

Companies generating 75% of their turnover from exports benefit from the special industrial zone regime (11) and are eligible for more tax advantages, including exemption from corporate tax during the first 5 years and 10% on taxable profit from the 11th to the 20th year (12).

Regulatory Environment

The Fish Sector Investment Action Plan 2024-2028 provides for the following to support the production of farmed fish: the establishment of an aquaculture feed mill, as well as the facilitation of access to aquaculture inputs and equipment through exemption on aquaculture inputs, materials and equipment (22).

The Fish Sector Investment Action Plan 2024-2028 also provides for the creation of modern hatcheries in major regional centres to provide fry from high-performance strains to fish farmers, the acquisition of floating cages, the acquisition of fry to populate the cages and the developed bodies of water (22).

Marketplace Participants

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Private Sector

Shalom Farm; Mbawane Fish and Agricultural Farm (FPAM); PARAKANA Fish Farm; Lofty Farm; Nodis Fish (based in the Lake Nangbéto basin).

Government

Ministries of Agriculture, Livestock and Rural Development; Urban Planning, Housing and Land Reform; Village Water and Hydraulics; Environment and Forest Resources; Promotion of Investment; The Directorate of Fisheries and Aquaculture (DPA), Advice and Technical Support Institute (22).

Multilaterals

European Union (EU), Food and Agricultural Organisation (FAO), World Bank, United Nations Development Programme (UNDP) we well as banks and microfinance institutions generally offering financial services to actors in the sector (22).

Non-Profit

German Society for International Cooperation (GIZ), National Federation of Unions of Fishing Cooperatives of Togo, Union of Maritime Fishing Cooperatives, National Federation of Cooperatives of Aquaculturists of Togo, National Federation of Cooperatives of Fish Processors of Togo (22).

Public-Private Partnership

The government, the Interprofessional Council of the fish farming sector and the private sector involved in fish farming are building partnerships to prevent environmental risks, ensure the facilitation of financing of activities and access to inputs (22).

Target Locations

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country static map
semi-urban

Togo: Maritime

The Maritime region, located along the Atlantic Ocean, has important fishing and fish farming activities (13, 22).

Togo: Centrale

semi-urban

Togo: Plateaux

The Plateaux region is important for continental fishing as well as fish farming, which is also practiced in the region due to dense hydrography (16, 17, 22).

Togo: Kara

Togo: Savanes

References

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