to find solutions to avoid resource depletion and to upgrade their products. Most importantly, the public sector needs both to establish a favourable regulatory and incentive environment,
facilitating knowledge and technology learning and innovation, and to provide high-quality public goods, notably infrastructure, that the private sector can benefit from Zeng, 2008.
6.2 FISH PROCESSING CLUSTERS AROUND LAKE VICTORIA
There are several studies documenting fish clusters around the Lake Victoria. These include the Kisumu and Uhanya Beach about 60 km from Kisumu clusters in Kenya, and the
Entebbe and Jinja ones in Uganda McCormick, 1999; Mitulla, 1998; and Bolo, 2006. Fish clusters in Tanzania, however, have not been recorded in the literature, despite the fact that
Tanzania has become the most important African exporter of fish to the European Union.
6.2.1 Lake Victoria fish clusters: some figures
Lake Victoria is the biggest fish reserve on the African continent, yielding about 25 percent of the total catch of all inland fisheries. These abundant fish resources have led to the
development of fish clusters around this lake. The introduction of the Nile perch into the lake in the 1950s by British settlers underpinned the growth of the fish clusters. The fish
clusters developed as a result of the rising overseas demand for fish, mainly in Europe, as fish supplies in northern waters dwindled Jansen, 1997.
The total catch of all fish species in Lake Victoria increased from about 100 000 tonnes in 1979 to about 500 000 tonnes in 1989 and to an estimated 840 000 tonnes in 2006
30
. Nile perch fillet exports grew tremendously from 1999, with Tanzania being the leading exporter.
30 www.lvfo.org
Figure 8. Lake Victoria fish clusters
Source: Author’s elaboration. The circles represent the five existing Lake Victoria fish subclusters.
Kenyan fish catches on Lake Victoria peaked in 1988–1992, but then declined until 1999. In 2001 about 80 000 tonnes of Nile perch, 50 000 tonnes of dagaa
31
and 20 000 tonnes of tilapia were landed on Kenyan shores. Ugandan fish landings have been around the 200 000 tonnes
mark, except in 2000. Exports peaked in 1996 with 16 000 tonnes and again in 2004 and 2005 with 18 000 tonnes and 24 000 tonnes respectively Balagadde, 2005; www.eurofish.dk.
6.2.2 Fish cluster evolution over time
Lake Victoria has a long fishing history. The growing international demand for Nile perch in industrialized countries triggered the phenomenal growth of the fishing industry in the early
1980s. In response to the increased landings of Nile perch during this time, more fishermen were drawn into the fishery. The number increased from about 11 000 in 1971 to 22 000 in
1989 and 24 000 in 1992 on the Kenyan part of Lake Victoria. An estimate is that 180 000 additional jobs were created in the 1980s. Adeya, 2006. Processing factories were established
along the shoreline of Lake Victoria. The first plants in Kenya were set up in the early and mid-1980s to process Nile perch and export its fillets to markets overseas. They proved to
be so profitable that more factories were soon set up in Kenya, Uganda and Tanzania. In the mid-1990s there were about 35 factories spread around the lake. Many of the factories have
been financed by international development banks and received support from government development aid agencies of the industrialized countries Adeya, 2006.
The industry suffered a severe shock when fish exports to the European Union were banned in 1997 over a lack of conformity to sanitary and safety regulations. Most factories closed
down for a number of years, but had reopened by the end of the decade.
Nowadays, fish catches from the lake are at risk because of a sharp decline in fish stocks. Tanzania is still the main exporter of Nile perch fillets to the European Union market. Kenya
has reported some cuts in its Nile perch fillet exports. Uganda is now very close to Tanzania as top Nile perch exporter to the European Union market, and has further invested recently
in its Nile perch processing industry despite the indications of declines in fish resources.
6.2.3 Upgrading of the Lake Victoria fish cluster
