Blue economy: overrated or a tremendous economic asset for Africa?

Miguel Verde

There is a new economy which is little by little gaining new supporters amongst various quarters of global society.

Africa is no exception, recalling that this continent is the "biggest island on the planet", with a coastline of about 31,000 km. long and yet trade among African countries accounts for 11% of the total trade volume, which is the lowest compared to the Association of Southeast Asian Nations, Europe and America.

However, Africa is awakening from a long slumber, there is an increasing number of African countries which are now embracing the blue economy for its potential to deliver solutions to their most pressing development needs-particularly extreme poverty and hunger.

But what do we mean by blue economy? According to the World Bank, the blue economy is a sustainable use of ocean resources for economic growth, improved livelihoods and jobs and ocean ecosystem health. This type of economy encompasses many activities such as renewable energy, fisheries, maritime transport, tourism, climate change and waste management.

From deep-sea mining and oil drilling to fisheries, aquaculture, trade and tourism, Africa is only just waking up to the potential of the vast ocean and lake resources on its doorstep. Thirty-eight of Africa's 54 states are coastal, and maritime zones under Africa's jurisdiction total some 13m sq km. Not to mention that Africa's lake zones cover approximately 240,000 sq km while its transboundary river basins cover 64% of the continent's land area.

Therefore, it seems there is a chance to revive African economy, not grounded only on its immeasurable natural land resources.

The African Union (AU) - has also adopted the blue economy, which is about exploiting resources such as oceans, lakes and rivers, into its 2063 development agenda for socio-economic transformation - and some think tanks which carry out summits regarding the future of the continent are suggesting that the Blue Economy and the 2030 Agenda for Sustainable Development, should go hand in hand and promote an advancing global conversation on both the productive and sustainable side of the blue economy.

In fact, the AU has launched its 2050 Integrated Maritime Strategy in a bid to provide a broad framework for the protection and sustainable exploitation of Africa's marine resources. At its heart lies the creation of a Combined Exclusive Maritime Zone of Africa (CEMZA), a common maritime space intended to boost trade, protect the environment and fisheries, share information and boost border protection and defence activities.

Several countries, especially those which are supported mainly by agrarian economies have already acknowledged that agriculture alone will not be sufficient to drive the economy since the sector is facing many challenges.

But despite the obvious ambition, David Thomas reminds us that "the challenges to successful implementation are immense. From concerns around environmental sustainability to the dangers of corruption and a dearth of actionable data, policymakers need vast resources to get to grips with large swathes of their own territory".

Last June, London hosted the inaugural Africa Blue Economy Forum, where policymakers and businesses met to chart a way forward. Several issues were discussed ranging from illegal, unreported and unregulated fishing, to maritime security, ocean governance and the role of ecosystem services in fishery and aquaculture.

At the end, the various participants agreed on the need for innovative financing to start developing the Africa blue economy on a wider scale, not only from governments, but also the private sector. Relevant data and more research is required to shape policies, especially with regard to climate change. Focusing on educating Africa's youth is also key to shaping the blue economy, which has the capacity to provide desperately needed jobs for the younger generation across the continent.

A very important note was also left by Leila Ben Hassen, the CEO and organizer of the first Africa Blue Economy Forum. "The blue economy is not simply the responsibility of the 38 African coastal countries, but it is also highly relevant to their landlocked neighbours. We must all contribute to put the blue economy into action, to help reduce poverty, improve livelihoods and assure sustainable socio-economic development".

Blue economy is just taking its first steps, it will be rather expensive and unthinkable to explore on its full potential, yet for now, one can observe that in Africa it is largely unexploited due to uneven focus on land as the most important factor of production. While Africa is endowed with large water bodies, sadly the communities living in close proximity to such lakes, seas and oceans in the continent are among the poorest in the region.

Undertaking such an ambitious and bold venture, countries will need billions of dollars, and invest in education, science and technology, robotics and drones and all the technology that advanced societies are using to monitor ocean resource.

A good and paradoxical example of Africa's maritime resources potential is the island of Mauritius, one of the smallest countries in the world, which has territorial waters the size of South Africa but has one of the strongest blue economies in Africa, ranking 3rd in per capita income in 2015. Mozambique, which lies alongside the Indian Ocean, is characterized by the highest species of diverse and abundant natural resources.

Nonetheless, one can't ignore the continent's maritime space has for long veered towards the bad news on illegal harvesting, degradation, depletion and maritime insecurity and linked to all this comes the worst "cancer" of Africa -corruption. This narrative is changing gradually, with recent initiatives indicating that countries are looking at full exploitation and management of Africa's Blue Economy as a potential source of wealth for the continent's growing population.

Kenya is in the vanguard and is among African countries that are developing strategies to mainstream the blue economy within its national economic blueprint. This East African nation's blue economy includes maritime transport and logistics services, fisheries and aquaculture, tourism as well as the extractive industries such as the offshore mining of gas and oil, titanium and niobium.

De Beers, the global mining giant, recovered 1m carats alone from the seabed in 2015. For the firm, which has made a vast fortune sifting the soils of Southern Africa for 130 years, heading to the oceans is not just a technological luxury but also an economic necessity. The sea-bound future of the diamond sector is just one of the thousands of eye-catching ways in which Africa's businesses, policymakers and ordinary citizens are turning their attention to the blue economy - a vast, largely untapped area of potential economic activity that has long played second fiddle to land resources. Whether in diamonds, fishing or tourism, the blue economy should become indistinguishable from the broader currents of economic growth.

We should, however be very cautious; environment experts, have expressed concerns that ongoing talks on the blue economy have largely revolved around full exploitation, in order for countries to develop rapidly in the next 10 years, and little on sustainability. This is a problem since there is evidence that oceans resources are limited.

Anyway, Africa should and is looking for pathways towards being at the center of global trade based on the Blue Economy, rather than just the supplier of unprocessed raw materials; among the greatest hurdles will be responsible management, so that the wealth generation is inclusive and ecologically sound.