Overview of the Fisheries Industry in Ghana

7 BACKGROUND

1.1 Overview of the Fisheries Industry in Ghana

Ghana has access to significant and valuable stocks of fish. Total domestic production, including aquaculture, is roughly 440,000 tons each year. This fish production is worth in excess of US 1billion in income annually. In terms of the overall economy, the fisheries sector accounts for at least 4.5 of GDP. These figures underscore the prominent role that fisheries play in the Ghanaian economy as they have done for many generations past. The cost of producing fish in Ghana is however alarming. The evidence available suggests that fish production costs are approaching or exceeding income in all inshore marine capture fisheries over recent years. There is also evidence that costs are increasing in inland fishing fisheries and what profitability that remains is being rapidly dissipated. Tuna fishery production and capacity has remained relatively stable but fishers report escalating costs as fish are migrating offshore and business compliance costs are increasing. Investments in management to address these problems are however negligible. Fisheries management expenditure in Ghana measured as a of total income is less than 2 of average expenditure in OECD countries i.e. 17 of revenue. Overal l, there is little or no surplus of income over expenditure in Ghana’s Capture fisheries and where some profitability remains it is being lost. This problem has unfortunately been exacerbated by government social interventions and donor activity that has directly or indirectly subsidized fishing effort. Taking into consideration these government social interventions it is likely that Ghana is paying more to catch and produce fish than they are worth. There is therefore a real risk that current GDP contributions from this sector are unsustainable into the future and this has macro-economic consequences for Ghana both in terms of increased poverty and in draining wealth from other sectors of the economy to support the ailing fisheries sector. 1

1.2 Overview of the SFMP Project