Sights on oceans to revive economies in Africa

Just off the beaches of Africa is a potential goldmine for the economies of the struggling continent – its resource-rich oceans.

Head of the Africa Oceans Council (AOC), Commander Mokhele, believes if these resources are exploited in a sustainable manner, they could contribute more than $100 billion (about R1.8 trillion) to the continental economy and create 28 million jobs.

Next month, the AOC will be hosting the Africa Maritime Investment Indaba in eThekwini in an effort to push for steps to advance the “blue economy” as a driver of growth while maintaining international cooperation.

Advancing the ‘blue economy’

Mokhele said the gathering would bring “African catalytic and scale maritime projects to the marketplace in order to source for funding, technology and knowhow from the domestic and international investment markets.”

Maritime trade accounts for 60% of South Africa’s GDP, Mokhele said, and “creates a huge dependence almost wholly on ports and shipping services”.

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According to the World Economic Forum, the natural capital of the world’s oceans contributes $70 trillion to global gross domestic product annually. The value of the ecosystem services alone contributes $38 trillion annually.

Mokhele bemoaned that the market in Africa had not been developed, adding: “It is an established fact that maritime trade facilitates 90% of global trade by volume and for countries in Africa, including South Africa, it is Sights on oceans to revive economies in Africa over 90% in volume and 80% in value.”

South Africa’s programme, Operation Phakisa – Oceans Economy, found that by 2010 the ocean economy was contributing R56 billion to GDP and was poised to make a R177 billion contribution to GDP and create 800 000 jobs per annum as early as 2033.

Ocean economy contribute 56bn to GDP

Mokhele said development finance institutions were assisting with projects they had started, including “deep-sea port developments, vessel construction, waterfront real estate developments, aquaculture and fisheries, tourism products, education and skills projects”.

This year’s conference will be focused on resource mobilisation and development of the market.

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Zenzile Gwamanda, managing director eThekwini Maritime Cluster, said African nations were pushing for stronger collaboration on policies that protect marine ecosystems while promoting economic growth.