The President of the Platform of Non-State Actors in Fisheries and Aquaculture in Africa spoke on Thursday 23 May 2024 at a seminar entitled “Fishing companies with investments and activities in non-EU countries: case studies in Africa“.
This event, organised at the headquarters of Brot für die Welt (Bread for the World) in Berlin, was aimed at examining the activities and investments of fishing companies in African countries.
The seminar included specific case studies on mixed companies and the value of small pelagics in West Africa, highlighting the challenges and opportunities associated with these collaborations.
Gaoussou Gueye, presented the viewpoint of African fishermen on joint enterprises and the synergies with the Sustainable Fisheries Partnership Agreements (SFPAs). His speech addressed the impact of joint ventures on marine ecosystems and small-scale fishing communities. He also stressed the importance of incorporating the issue of beneficial ownership into supranational legislation, such as OHADA, and called for greater international collaboration to promote the sustainable management of fisheries resources in Africa.
For over 70 years, many African countries have encouraged the creation of joint fishing companies with foreign companies, be they Korean, Russian, European, Turkish or, more recently, Chinese. The aim of this initiative was to develop the industrial fishing capacity of African countries.
However, the lack of in-depth knowledge of marine ecosystems and fisheries resources, coupled with a lack of data on the needs of small-scale fishing communities, has led to often disastrous consequences.
The real beneficiaries: the need for transparency
The issue of the beneficial owners of fishing vessels operating under African flags is crucial. In many cases, vessels of foreign origin are registered under local companies that are no more than post office boxes. This creates “front” joint ventures, with no real local control, bypassing legislation requiring majority ownership by local nationals. This lack of transparency not only undermines the governance of fisheries resources, but also facilitates fraudulent practices, such as the under-reporting of fishing tonnages, exacerbating the over-exploitation of marine resources.
The example of Spain, which has shared information on the owners of vessels operating in mixed companies, shows the way forward. It is imperative that all European countries, under the aegis of the European Union, adopt similar approaches to transparency. Furthermore, it is essential to promote this transparency at international level, with a view to creating a public register of beneficial owners of vessels operating in African waters.
OHADA law and joint ventures
The Organisation for the Harmonisation of Business Law in Africa (OHADA) does not take into account the question of beneficial owners in its texts relating to the formation of mixed companies. This legislative loophole allows the creation of shell companies that conceal the true foreign owners. To ensure sustainable and equitable management of fisheries resources, it is crucial that OHADA law includes provisions on the transparency of beneficial owners.
The importance of fisheries research and an appropriate regulatory framework
Substantial investment in fisheries research is essential to assess the state of marine resources before granting fishing licences. Prudent and informed management of fisheries resources is necessary to avoid overexploitation and protect marine ecosystems. The authorities responsible for registering fishing vessels must take into account the state of resources before issuing licences.
In addition, it is essential to develop a regulatory framework in consultation with the various administrations concerned and stakeholders, in particular small-scale fishermen, to review the rules for setting up and operating joint fishing companies. This framework should ensure that boats operating in joint ventures do so transparently, without contributing to the over-exploitation of resources or the destruction of ecosystems.
International support for sustainable governance
As part of its partnership with Africa, the European Union is committed to encouraging better governance of the oceans and the development of sustainable fisheries. The partnership agreements for sustainable fisheries contain clauses encouraging the creation of joint ventures. These agreements can serve as a platform for discussing the conditions to be met when setting up joint ventures, ensuring their compliance with sustainability criteria.
Active collaboration between the Fisheries Advisory Committee (LDAC) and Afrifish could also inform African decision-makers about best practice in sustainable fishing. Initiatives such as the Fisheries Transparency Initiative (FiTI), already adopted by some African countries, show the way forward.
Legislative and regulatory frameworks need to be reformed to ensure transparency of beneficial ownership and sustainable management of fisheries resources. International players, in particular the European Union, can play a crucial role in supporting these reforms through partnerships and advocacy. Such an approach would ensure the fair and sustainable exploitation of marine resources, benefiting both local communities and foreign investors.
By Gaoussou Gueye