Fisheries: Can innovative financing unlock blue economy potential?

Experts, government officials, and stakeholders in finance and research are now forging forums to deliberate on solutions that could breathe new life into this vital sector.

At the heart of the conversation is how the country can close the financing gap to unlock innovation and technology—especially in aquaculture—and maintain its standing as one of the top fish food contributors globally, particularly within the African Continental Free Trade Area (AfCFTA).

At a recent Blue Finance Forum held in Dar es Salaam and organised by the Centre for Banking and Financial Services Research of the University of Dar es Salaam, stakeholders gathered to deliberate on the theme; “Powering Innovation to Transform Tanzania’s Fisheries Sector.”

The government, represented by the Director of Aquaculture in the Ministry of Livestock and Fisheries, Dr Nazael Madalla, acknowledged the sector’s existing financing bottlenecks.

He emphasised that addressing them was critical for scaling up production and modernising operations across the fisheries value chain—from production and processing to transportation and marketing.

“Unlocking the potential of the fisheries sector remains elusive due to the financing gap, which limits value chain actors from investing in and adopting advanced, environmentally friendly technologies,” said Dr Madalla.

“Addressing this critical financing gap is a strategic step towards fostering inclusive social development and realising the full promise of our blue economy.”

Sector in numbers

The numbers paint a clear picture. Tanzania remains among the top 10 producers in terms of inland capture fisheries in the world and aquaculture production in Africa.

Fisheries provide 30 percent of animal protein, employment to over six million people and contribute 1.7 percent of GDP.

As of April 2025, Tanzania had produced 599,200.33 metric tons of fish valued at Sh3.4 trillion. Capture fisheries contributed 466,956.88 metric tons, while aquaculture accounted for 132,243.45 metric tons.

Exported products, including fish, live ornamental fish, and seaweed, brought in Sh396 billion.

These figures suggest immense potential, yet they remain a fraction of what the country could achieve with better investment.

With marine waters covering close to 300,000 square kilometres and freshwater ecosystems spanning 62,000 square kilometres, Tanzania’s aquatic resources remain vastly underutilised.

Challenges persist.

Small-scale fishers, who contribute over 97 percent of total catch, often lack the collateral and financial literacy required to access credit.

High investment costs for vessels, aquaculture infrastructure, and equipment also make commercial viability difficult without institutional support.

Moreover, the absence of fisheries insurance mechanisms means that risks—whether from natural disasters or market volatility—remain unmitigated. Consequently, financial institutions perceive fisheries as a high-risk sector, imposing high-interest rates that discourage borrowing. However, change is in motion. The government has initiated several reforms and projects to transform the fisheries landscape.

Over Sh20 billion in interest-free soft loans have been disbursed to fishers and aquafarmers for modern boats, cage farming equipment, and seaweed farming, aimed at transitioning them from artisanal to commercial operations.

Infrastructure development is also underway, including landing sites, solar tents, drying racks, and fish markets to reduce post-harvest losses.

According to Dr Madalla, the construction of Kilwa Fishing Port is now 81.9 percent complete, while feasibility studies are being carried out for the proposed Bagamoyo Fishing Port.

Efforts are also being made to strengthen aquaculture as a long-term strategy for supplementing inland capture fisheries, which have reached their maximum sustainable yields.

“We have established 99 zones for cage fish culture, covering over 220 square kilometers,” explained Dr Madalla.

“We are also expanding aquaculture development centres and introducing an online system for permit applications.”

He added that a major project—the Tanzania Scaling-up Sustainable Marine Fisheries and Aquaculture Management Project (TASFAM)—is in final negotiation stages.

“It will house a new National Mariculture Resource Centre at the University of Dar es Salaam, envisioned to be a regional hub for research, innovation, and training,” he revealed.

Financing the sector

But government efforts alone are not enough. Financial institutions must step up, and CRDB Bank Plc is showing the way.

Leveraging its agricultural lending expertise, the bank has tailored financial products to the unique risks and opportunities of the fisheries sector.

It provides a spectrum of financial tools from micro to large loans and has developed advisory services to de-risk lending, helping both fishers and aquafarmers access much-needed capital. CRDB’s approach demonstrates that with proper sector understanding, financing fisheries is not just possible, but also commercially viable.

Coordinator of the Centre for Banking and Financial Services Research, Prof Esther Ishengoma, emphasises that technology adoption must accompany financial investment.

“Our research found that outdated fishing equipment and lack of technological awareness are major barriers. Stakeholders need both financing and training to adopt innovations that will modernise the sector,” she said.

The challenge, she added, lies not just in getting funds but also in ensuring that they are used effectively for innovation and sustainable practices.

With aquaculture accounting for only one percent of total fish production in Tanzania—compared to 85 percent from inland capture fisheries—the need to diversify becomes evident.

Tanzania aims to increase aquaculture production from the current 20,000 tonnes per year to 50,000 tonnes by 2025, and 100,000 tonnes by 2030.

Achieving these goals will require significant investment in technologies such as recirculating aquaculture systems, climate-resilient species, and smart feeding systems that optimise yield.

Private sector involvement is critical here.

Experts argue that banks, insurance companies, and investors must design products suited for fishers and aquafarmers while collaborating with government and research institutions.

“There is a huge market opportunity here, particularly with the African Continental Free Trade Area creating demand for fish products across borders,” said Dr Madalla. “But the private sector must align with our national strategies to build a mutually beneficial ecosystem.”

Women, who make up 76 percent of fish processors and 85 percent of seaweed farmers, should also be a focus for inclusive financing. Gender-sensitive lending models can increase productivity and create more equitable value chains.

Digital tools, mobile banking, and savings and loan cooperatives tailored to women fishers can play a transformative role in this regard.

Experts say the future of Tanzania’s fisheries sector will also depend heavily on data-driven policymaking. Researchers have a pivotal role to play in monitoring fish stock health, evaluating the impact of aquaculture practices, and recommending sustainable approaches.

The upcoming Mariculture Resource Centre is expected to spearhead such research, while fostering partnerships with international institutions to bring global best practices to Tanzania’s shores.

Tanzania’s blue economy stands at a defining moment.

The government has laid the foundation with policy reforms, infrastructure investments, and strategic planning.

The private sector, if aligned properly, can provide the financing muscle needed to unlock innovation, support livelihoods, and scale up sustainable fisheries and aquaculture.

In the words of Dr Madalla: “We have the waters, the species, the people, and the ambition. What we need now is the partnership—across public and private sectors—to harness this potential and create a resilient, profitable, and inclusive fisheries sector for Tanzania.”