Government has launched an R800-million aquaculture programme, offering cost-sharing grants of up to R40-million per company in a bid to stimulate investment and create more jobs in the sector.

The Agriculture Development and Enhancement Programme (Adep), which was launched in Cape Town in March, would offer a reimbursable cost-sharing grant of up to R40-million for machinery and equipment, bulk infrastructure, commercial vehicles and work boats and for activities that would boost competition in the industry.

Trade and Industry Minister Rob Davies said there were “enormous” untapped opportunities in South Africa’s aquaculture industry.

Abalone, mussels, oysters and freshwater fish were being farmed, but the pace of growth in the industry was slow.

Davies said South Africa produced less than 1% of Africa’s output.

In 2011, South Africa pro-duced 7 686 t of fish and fish products through aquaculture,

compared with Egypt’s 900 000 t and Nigeria’s 200 000 t.

More than one-quarter of South Africa’s production came from abalone.

Davies challenged the industry to push its production rate up to 50 000 t/y.

“We are right at the bottom of the curve and we need to move rapidly in the next few years. The growth could be dramatic,” he said.

The shift from ocean fishing to aquaculture has been significant.

“There’s been a major change globally in the production and consumption of aquatic products. Nearly half of the total fish products produced in the world now comes from aquaculture. It’s driven by the reality that world fish stocks are being grossly depleted,” said Davies.

Adep aimed to sustain and create jobs, increase production, broaden participation by broad-based black economic-empowerment companies and encourage companies to set up farms in different areas of the country.

Department of Trade and Industry head of product development Tumelo Marivate said government would pay the grants as soon as the entities came into production. She said a total of R800-million had been set aside for the grant and so far four investors had shown interest.

Davies called on people to grasp the opportunity. “We will incentivise and support you in taking the risks and ask you to move into this industry with us.” He said additional advantages would be offered to companies investing in industrial development zones (IDZs) and that

an interesting project had been launched at the East London IDZ, where kabeljou – otherwise known as ‘dusky cob’ – was being cultivated. Similar projects could be launched at the Saldanha IDZ.

“Clearly, there are enormous opportunities in terms of the production of protein, the development of export activities, the creation of employment and the devel- opment of skills in aquaculture,” he noted.

Most of South Africa’s aquaculture farms are in the Western Cape. In 2010, the Western Cape had 20 farms, the Eastern Cape nine, the Northern Cape three and KwaZulu-Natal one.

Abalone makes up the largest slice of aquaculture production, followed my mussels and oysters.

Freshwater fish species include trout, catfish, mullet, largemouth bass, marron crayfish and Atlantic salmon.

Trout is the most cultured freshwater species in South Africa, with rainbow trout producing nearly 1 000 t. But the department said trout faced stiff competition from salmon imported from Scotland and Norway, much of which is subsidised.

China produces 70% of the world’s aquaculture.