{"id":659948,"date":"2025-02-04T00:00:00","date_gmt":"2025-02-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/the-lowdown-on-egypts-blue-economy\/"},"modified":"2025-02-04T00:00:00","modified_gmt":"2025-02-04T00:00:00","slug":"the-lowdown-on-egypts-blue-economy","status":"publish","type":"goinggreen","link":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/the-lowdown-on-egypts-blue-economy\/","title":{"rendered":"The lowdown on Egypt\u2019s blue economy"},"content":{"rendered":"

Where does Egypt\u2019s blue economy stand?<\/strong> The blue economy is increasingly coming into frame as a key pillar of the green transition. At home, the blue economy has significant potential by virtue of Egypt\u2019s strategic location \u2014 and the country has, indeed, made some successful strides in areas like fish farming. Nonetheless, the local sector is underperforming in the absence of a national blue economy strategy and fragmented oversight. The Egyptian Center for Economic Studies (ECES)<\/a> last month held a seminar<\/a> to discuss Egypt's position in the global blue economy and ways to overcome these obstacles. We bring you the full scoop in this story. <\/p>\n

THE BRASS TACKS-<\/p>\n

First things first: What is the blue economy?<\/strong> The term refers to the sustainable use of marine resources for economic growth, according to the World Bank<\/a>. It encompasses activities<\/a> like aquaculture, renewable marine energy, ocean-based tourism, maritime transport, and marine biotechnology.<\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n

The global blue economy is gaining momentum:<\/strong> Estimated at USD 15 tn, the global blue economy provides more than 500 mn jobs worldwide and supplies 40% of food security, according to ECES. One of the United Nation\u2019s 17 sustainable development goals \u2014 dubbed Life Below Water<\/a> \u2014 focuses on the conservation and sustainable use of oceans, seas, and marine resources for sustainable development.<\/p>\n

More than 33 countries have integrated the blue economy in their future development <\/strong>plans<\/strong>, including China, India, Morocco, and South Africa. China\u2019s blue economy contributed about 9% of its GDP \u2014 or USD 1.3 tn \u2014 in 2019, while South Africa's blue economy accounted for about 4.5% of its GDP in 2020.<\/p>\n

At home: <\/strong>A study by ECES revealed that coastal tourism and diving dominate the sector, accounting for 75% of the total value of Egypt\u2019s blue economy. Fish farming emerged as the second largest contributor, followed by transportation. While the renewable marine energy sector currently holds the smallest share of the blue economy, it is projected to have the highest growth potential in the future.<\/p>\n

AQUACULTURE-<\/p>\n

We\u2019ve had some success with fish farming: <\/strong>Fish farming presents a prime opportunity for the local blue economy. Ranking as the top aquaculture producer in Africa, Egypt accounts for 71% of the continent's output, according to a 2023<\/a>study<\/a>. The country has grown its output of farmed tilapia by over 50 times since it first began producing substantial quantities in 1991, expanding it to a current 1.1 mn tons from 20k tons, Fish Basket Chairman Ali El Haddad said at the ECES seminar. El Haddad attributes this growth to effective private sector management.<\/p>\n

But how sustainable are our practices? <\/strong>Fish farming, along with fishing and ecotourism, continue to rely on traditional economic models. Additionally, illegal fishing in certain areas is damaging the marine ecosystem and threatening fish populations.<\/p>\n

Exports are stifled by an underdeveloped fish processing industry: <\/strong>Aquaculture exports remain at a low level of around 50k annual tons, El Haddad noted. Because the fish processing industry is underdeveloped, exports are constrained to whole fish, which represent a meager 3% of global fish exports, El Haddad explained.<\/p>\n

Regulatory reforms are needed to prop up fish processing:<\/strong> The National Food Safety Authority\u2019s (NFSA) bureaucratic approach causes delays, while its multi-committee inspection process focuses on finding faults rather than helping factories improve and meet export standards, El Haddad argued. He urged the creation of laws to regulate the fish processing industry and called for a reform of the NFSA.<\/p>\n

MARITIME TRANSPORT-<\/p>\n

We\u2019re in the catbird seat when it comes to maritime trade:<\/strong> Egypt's strategic geographic location, with over 3k km of coastline, positions it to capitalize on 60-70% of global maritime trade, said Khaled El Sakty, AAST\u2019s International Transport and Logistics college dean. Nearly 11.8 bn tons of goods \u2014 85% of global trade \u2014 are transported by sea, he noted.<\/p>\n

But inconsistent port fees and regulations are a sticking point:<\/strong> Among the obstacles hindering the country\u2019s significant maritime potential are inconsistent port fees and tariffs, said international transport consultant Mohamed Sherine El Naggar. Additionally, varying port authority regulations have prevented proper discount application for vessels passing through multiple ports. El Naggar stressed the need for unified tariffs, fees, and regulations, alongside a comprehensive overhaul of the entire maritime system.<\/p>\n

What about other industries? <\/strong>Subsea cables and marine-based medicine are two promising sectors, said El Sakty, calling for increased investment in these areas. Submarine cable networks facilitate around 99% of international data transfer, according to the Blue Economy Observatory<\/a>, and many crucial cables traverse Egyptian waters, El Sakty said. Meanwhile, some 50-60% of pharma companies rely on raw materials derived from marine organisms, El Sakty said, emphasizing the importance of more research in this area. <\/p>\n

Om El Donia has a ways to go: <\/strong>Despite government discussions about a blue economy strategy for over two years, one is yet to materialize. And unlike major players in the blue economy, Egypt lacks an independent authority dedicated to regulating the sector, with multiple ministries and entities seeing an overlap in roles. El Sakty suggested the creation of an independent authority under the cabinet. Echoing this sentiment, ECES\u2019s Execute and Research Director Abla Abdel Latif called for the development of a clear institutional framework to prevent further missed opportunities for Egypt\u2019s blue economy.<\/p>\n

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