Improving Livelihoods
Roles for the private sector and
financing mechanisms
Presented by
Michael Savins
Community clam farming
Republic of Kiribati
Farmed clams, Tridacna maxima
A family on Abaiang Island in Kiribati that has received
income for the ocean grow out of aquarium clams
Income generation
Excellent ocean grow out conditions
Excellent
ocean
grow out conditions.
High
value live export
product
Appropriate
technology
due to years
of adapting
High value
live export
product.
strategies
and development
by private
Appropriate
technology
duesector
to years of
NZ Aid providing direct funding to private sector to
development
by private
sector.
support
community income
generation
opportunities
adapting strategies and
NZ Aid providing direct funding to private sector to support
community income generation opportunities.
Appropriate technology
Partnerships with Kiribati Fisheries Division and
private sector, expands community clam farming
to more outer island communities.
Partnerships
The biggest challenge is for a rural household to
understand how essential a husbandry
commitment is to ensure success
Constraints
The major challenge today is unsustainable and unfair marketing
practices regionally. In the past 18 mths Tahiti has devastated the
international market for aquarium clams, by exporting wild harvested
clams with subsidized air freight
Major Challenges
Exports of live tropical fish.
Air freight costs and resource management issues
Serious safety concerns
Photo:
Antoine
Teitelbaum
Diver Vanuatu
Exports of farmed live coral
Yayasan-Sabah-group
Potential for large scale community
farming activities
Environmental management concerns
Air freight costs restrict many countries
Post harvest, value adding
Large urban markets urb
Large urban
markets,
provide a great
opportunity .
Private sector drives innovative products
Tuna Sausages
International efforts
should invest in food
technology
development
Wholesome
local foods
Can improve
diet and
income
generation
Women
are the
opportunities
best fish
processors.
Appropriate technology. This prototype
convection drier will be replicated on a much
larger scale
Invest in
Appropriate
technology
Back up heaters can ensure quality. Trials with
coconut husk back up heaters have worked well
in the rural environment
Rural locations in the Pacific islands offer great
potential to effectively scale up production
Flavored and dried tuna
Recent work with value added, flavored
and dried tuna in Somalia
Prime tuna cuts and tuna waste are value added
and dried. The economics improve dramatically if
the fish waste is value added.
Prime tuna cuts
offer income
generation while
flavored and dried
fish waste offers
food security.
Livelihoods development must come from a
grass roots approach with appropriate
technological development
Lack of capital to start. The right equipment and tools. Education in market
Export
characteristics. Government must provide real incentives. Balancing church
standards
can
commitments with livelihood development.
beAhling
achieved
Onorio.
within the
context of a
rural
community
lifestyle.
Maskelyne Island, South Malekula
Vanuatu
The Maskelyne Island community do appear to
take their Fisheries Management very seriously
A key to sustainable marine resource
management is to provide alternatives for the
livelihoods most affected
This rural training center is
intensely under
This funded
rural training
center is
intensely under
funded
On Maskelyne Island a private NZ family are
doing their best to assist the rural community
Donors are reluctant to move out
.Donors are reluctant
of their comfort zone and truly
to move out of their
engage with community
comfort zone and truly
engage with
community
The complexities of community situations are
challenging, donors solving technical problems but
implementation even more challenging
technical people (local)
business plan developm ent
Investm ent people (local)
an
lM
n ci a
Fi n a
corporate com m unity
r at i
an
lM
ona
corruption / not for profi t agenda
effi ciency m anagem ent
m
ag e
iho
)
en t
od s
en t
m
ag e
i vel
e (L
consum ers
repaym ent risk and equity (legislation)
pl
Peo
politicians
Op e
local onsite m anagem ent
investm ent funds procurable?
Investm ent people (international)
Cash from aquaculture production
T ec
onm
hni
cal
En v
ir
technical people (local)
el o p
hatchery facility
me
ex tensive m ethods
nt
i t y)
growout facilities
Biosecurity
intensive m ethods
Ishikawa diagram courtesy Jamie Whitford
D ev
rtun
accessible m arket
en t
(Op
po
investm ent security
renewable resou rce
Problems mount
up if considered
Need all solutions
to help minimise
risk
Management within many donor agencies appears to be
moving further away from Pacific rural reality
We must get out into
communities and
engage in balanced
dialogue.
This has been our
biggest failure.
Cold Chain Fisheries
Reliable and cost effective ice supplies essential
in commercial fisheries
12 Meter small scale tuna long liner.
KIR 24 design
12 Meter
small scale
Tuna
Long liner
KIR 24
design.
Ice Machines
• Japan has provided numerous quality ice
machine plants in rural locations for many
years
• The justification for most of these plants
has been political
• Today Kiribati has more than 10 of these
plants on outer Islands
Community Managed Ice Fish
Markets
• Today in Kiribati most of the community
managed ice fish markets are not
operational
• Lack of revenue to provide basic fuel costs
• Extremely limited market for fresh fish in
rural communities
• Expensive/limited transport to urban
markets
Commercial Ice Supplies
• The only commercial supply of ice in Kiribati today
is the Kiribati Fish Ltd, KFL.
• International private sector fishing companies do
provide good opportunities for expansion of
domestic fishing operations in Pacific Island
countries
• I doubt if any government managed or community
managed fishing operations are commercially
viable
• Reliable and inexpensive ice supplies are
paramount to the success of cold chain fisheries
Mother vessel concept
Okeanos an 18
meter sail and
solar powered
catamaran
provided support
to small scale
fishing craft from
Okeanos an 18 meter sail and solar assisted catamaran
various
provided support to small scale fishermen’s associations
fishermen's
associations .
Appropriate and cost effective fishing craft.
We must provide alternative designs, small scale artisanal fishermen
are struggling to survive, due to impacts of the distant water fleet.
If we do not act, entire small scale fishing sectors may fail within the
next 5 to 10 years.
Efficient multi
hull vessels with
low investment
costs, offer
excellent work
deck area and
suitable fish hold
capacity
Present work in Somalia we are developing low
cost molds to build prototype designs in fiberglass
SPC does great work in appropriate
livelihoods development.
• SPC master fishermen have played a key role within
appropriate fisheries development, these activities
should be expanded
• In the past SPC also had a section dedicated to post
harvest fisheries development, this project was my
inspiration to develop savory dried fish products,
these activities should be expanded
• SPC could take on the appropriate fishing vessel
design development work once provided by the FAO
regional fisheries support program, this is essential
at present in the Pacific and yet non existent
Management
• Politically motivated projects and
commercial activities fail
• Community managed commercial
activities struggle
• Private sector offer the best chance of
success
• Many donors struggle to link with the
private sector
• Working groups offer the potential link
Working groups
• Australia has just established a new
development innovation hub in the
department of Foreign Affairs and Trade to
engage creative thinkers from inside and
outside the public sector
• I favor this approach, my own experience
being part of working groups with PIPSO and
the Baurua Group demonstrated sound
results
• Selection processes must be transparent
Entrepreneurs
• “The entrepreneur is not someone of ordinary
management ability but one who introduces something
entirely new.”
Idogho and Augustine (2011) International Journal of Business Management
2011
• With regard to a Nigerian Federal Government initiative,
these authors go on to highlight a positive correlation
between entrepreneurship education introduced into the
curriculum for tertiary institutions and the desire/ability
and success to set up small scale businesses after
graduation
Initiatives for the youth
• The Taiwan Technical Mission in Kiribati have
now, after several years working with
community livelihoods development with
vegetables, made the decision to
concentrate the major part of their efforts with
secondary education boarding schools on the
islands of Kiribati
• Encouraging fisheries management with
alternative forms of income generation with a
similar approach would have merit
Business management constraints
in the Republic of Kiribati
• Governments lack of policies to create a
more enabling environment for business to
operate
• There are unnecessary barriers and high cost
to set up a business and very little support or
programs from government to assist
• Land issues, high cost of port fees and poor
infrastructure
• Ability to find skilled labor is important
Finance mechanisms in the
Republic of Kiribati
• Accessing micro and affordable finance
remains an issue, in particular for small to
medium businesses to access
• In essence the only real organizations that
offer finance options are the ANZ
Commercial Bank, The Development Bank
of Kiribati and the Kiribati Provident Fund
• All are expensive and require substantial
paper work to obtain a business loan
Other finance mechanisms in
Kiribati
• There is a lack of NGO micro finance
options for new businesses to access.
Unfortunately most focus on the macro
level
• We need to seriously look at the micro
level to start the new pipe line of
businesses and entrepreneurs to access
micro loans
The need to identify other finance
mechanisms
• We need to have a serious look at what
options are available in the Pacific today
• A published guide would go a long way to
assist small business and entrepreneurs
• Any assistance packages should be very
specifically promoted by various
organizations
• I have accessed several assistance
packages over the years and these are hard
to find for the first time and often have a
limited life
Summary
• Get out to the community with a grass roots approach
• Build entrepreneurial management skills within livelihoods programs
• Invest in appropriate technology and build viable income generation for
communities, especially those affected by marine resource management
• Expand SPC livelihood's activities
•
•
•
•
Aquaculture and mariculture
Master fishermen program
Post harvest fisheries development
Appropriate fishing vessel design development
• Establish in country working groups with creative thinkers to build the
necessary links between government, donors and private sector
• Improved government policy to support entrepreneurs
• Develop appropriate finance mechanisms