Distribution of Economic Benefits from the Fisheries of Lake Victoria
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Date
2006
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Abstract
The Lake Victoria fishery contributes immensely to the socio-economic
development of the riparian states. The East African Community has designated
the lake basin as an ‘economic growth zone’, with the potential to develop into a
major economic region. The fisheries are vital in creating employment
opportunities, mostly rural-based, thereby helping to reduce rural-urban
migration. Fish is also a rich source of animal protein for human consumption
and provides raw material (fishmeal) for processing animal feeds. The fish
industry contributes to GDP and has continued to be an important source of
foreign exchange earned from fish exports. Besides, the fish industry contributes
to the national and local government revenues through levying of various taxes,
levies and license fees. The sector has also contributed directly and indirectly to
the improvement of physical infrastructure and social facilities, such as roads,
schools and hospitals, particularly in remote fishing communities.
Based on current stock estimates, the lake has the potential to yield fish valued
at over US$ 800 million annually on a sustainable basis. Further processing and
marketing the fish in the local and export markets could provide opportunity to
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generate additional earnings. Currently, however, only about 500,000 tonnes of
fish is landed annually, with an average landing value of approximately US$ 600
million.
However, the distribution of these benefits at the regional, national and individual
levels is often not equitable. High disparities in distribution of benefits is
considered undesirable as it creates a sense of social injustice among the
beneficiaries; can be an obstacle for self-sustaining growth; is a limitation in
uplifting the resource users out of poverty; leads to low compliance to fisheries
regulations and hinders attaining sustainable fisheries exploitation. The paper
assesses the distribution of economic benefits from the fisheries, using selected
indicators. It reveals disparities in the benefits at the regional as well as at the
local levels, with more benefits accruing to the upper levels of the fish marketing
chain.
The disparities are attributed to unequal distribution in production assets such as
capital, skills and credit facilities; free-market price determination mechanisms;
inadequate access to market and other useful information; limited investment
horizon and opportunities among fishers; inadequate policies to deal with
disparities in distribution and insufficient data for distribution analysis to feed into
the policy process.
In order to streamline distribution, the paper proposes, among other things;
establishing suitable savings and credit schemes, empowering BMUs to organise
fishers for marketing, improving market information flow through electronic and
print, operationalising the Fish Levy Trust Fund for infrastructural and social
facility development, improving policies and improving data availability.
Description
Keywords
Economic benefits, Disparities, Distribution, Equity, Poverty, Gross domestic Product
Citation
Abila, R.O., Odongkara, K.O. and Onyango, P.O., 2006. Distribution of economic benefits from the fisheries of Lake Victoria. In Proceedings of the 11 th World Lakes Conference-- Proceedings (Vol. 1, pp. 87-92).