FISHERY SUBSIDIES IN GHANA

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3. FISHERY SUBSIDIES IN GHANA

The total fisheries subsidy in Ghana was valued at US33 million in 2003 Sackey-Mensah 2012. More recently, it is estimated to cost up to 47 million in 2016. This value includes the programs and investments of bilateral and international donors. Of that, 63 supported capacity-enhancing subsidies and 32 supported beneficial subsidies. Subsidies that fall in the category of capacity-enhancing supported by the Government of Ghana GoG include: • Fishing port construction and renovation, and subsidies for fish landing site infrastructure • Imported fisheries inputs are not taxed • Tax exemption programs. Subsidies for fishing gear and engines. The GoG subsidized about 40 towards selected fishing nets and outboard motors Sackey-Mensah 2012. In 2012, for example, 40 HP outboard motors could be obtained for GH¢4,900 US2,644 rather than the actual price of GH¢7,500, US4,000 a reduction in price of 35. The distribution of subsidized outboard motors has continued over time Figure 17. A June 25, 2016 Graphic Online News article indicated that the government was distributing 2,600 40-HP engines in 2016 and 1,500 smaller engines. Fishermen pay 60 of the cost, while the government pays the remaining 40 percent. At an estimated value of US3,160 40-HP engine, and assuming that smaller engines are valued at US2,000engine, the total cost to government of this engine subsidy is US4,486,400. The Premix fuel subsidy program. The subsidized fuel is a pre-mix of gasoline and engine oil in an effort to prevent diversion of use in any engines such as automobiles rather than provided to the canoe sector that exclusively use outboard motorization. The subsidy on outboard motor fuel amounts to about 70 of the market cost of the fuel, or a cost to GoG of about US44.4 million per year see calculation of the cost provided below in Table 3. Figure 16 Fishing vessels at entrance to Elmina 15 Photo credit: N. Lazar Figure 18 Signboard for a landing site pre-mix committee Photo credit: B. Crawford Figure 17 Delivery of 40 HP outboard motors to a fishing community in February 2016 16

4. SUMMARY OF THE PREMIX FUEL SUBSIDY