The Global Acquabusiness Investment Guide

Executive Summary Theglobalaquaculture industry has seenconsiderable expansion in recent years,drivenby risingconsumer needs,a lack of growthfromcapturefisheries, progress in productiontechnologies, andaugmented investments from both privatesectorand governmental bodies. Presently, aquacultureistheworld’s fastest growing food sector and is anticipated to outgrow capture fisheries by 2027.Sustaining thisgrowthwill requirecontinuedindustry support. Recognisingthis, the World Bank Group(WBG)has established a Global Aquabusiness InvestmentAdvisory Platform (AquaInvest Platform) that aimsto develop and disseminate best practices inaquabusiness development,with a view to ensuring economic prosperity, social well-being, andenvironmental sustainability. By nurturing innovation and collaboration, the AquaInvest Platform seeksto empower aquaculturepractitioners, investors andgovernments tomeet the challenges posed bystagnating fisheriesproductionand the increasing demandforfood fromarapidlygrowinghumanpopulation. The Platformisa Global Advisory Services and Analytics (ASA) task, which is funded bythe multi-donortrustfundPROBLUEandadministered by the World Bank. Thetaskis a joint undertaking amongst WBGteams(Agriculture and Food (AGF),Environment, Natural Resources and the Blue Economy(ENB) andthe International Finance Corporation(IFC)),clients,and partners.Akey component of the AquaInvestPlatform is the preparation ofa set ofglobalprinciplesto promotesustainableaquaculture growththroughinvestment andbusiness development.The WBG contracted Advance Africa ManagementServices to develop and disseminateThe Global AquabusinessInvestmentGuide. The rapid growth of the aquaculture sector, coupled with various trends such as increasing demand,technologicaladvancements,and supportive investments,presents numerous opportunities forstakeholders across the industry. These opportunitiesare relevant toproducers,investors,policymakers,and consumers, offering avenues for economic growth, innovation, and food security. However, to fullyharness these opportunitieswhile safeguarding against potential challenges and negative social,ecological, andeconomicimpacts, there is a critical need for a consolidated set ofprinciplestoguidesustainable commercial aquaculture development. TheGuide was formulated through a combination of 1) desktop-based reviews of the existingframeworksand best practicesfor aquaculture development and management, 2) a review ofglobalcase studiesrepresenting successes, challenges and lessons learnt in aquaculture investment andaquabusinessdevelopment,and 3)comprehensive stakeholder engagements with a variety ofaquaculture industry actors.Through these activities, the needs of the intended users of theGuide, andcommonalities driving sustainable aquabusiness development,wereidentified. TheGuidedescribesthe necessary requirements and enabling factors thatneed tobe in placetostimulate aquaculture investment and business growth that is socially,environmentally,andeconomically sustainable.The Guide is global in their geographic scope, and appliesto all majoraquaculture species groups, production systems and production scales.They encompass activities alongthe entire value chain, from primary production to supporting industries and services (e.g., feedproduction and veterinaryservices) and the production of aquatic non-food products.Theycan be usedby a diverse range of actorsincludingnational governments, private and public sector investors, privateaquacultureoperators seeking investment(primarily small and medium enterprises(SMEs)),development partners, non-governmental organisations (NGOs), donors, research organisations and other stakeholders working on aquaculture, climate change, socio-economic, and environmental issues,andcanbeadaptedtotheirspecific contexts and needs.Importantly, thePrinciplesarea publiclyaccessible “living document”(currently Summer 2024 Edition)that will be updatedperiodicallyas newlearnings emerge. ThesePrinciplesdo not duplicate existing frameworks,guidelines,principles,and Best ManagementPractices (BMPs)for sustainable and responsible aquaculture but build on these in a practical way(providing specific recommendations), with a specific focus on investment and business development. Part Iof theGlobal Principlesfor Sustainable Aquabusinessprovides areviewofthe current state ofglobal aquaculture, andhighlightschallenges tosectoralgrowth. This is followed by an overview of keyelementsofcommercially-driven aquaculture sector development, namely:(1)Aquabusiness ValueChains,(2)Institutions and Management,(3)Support to SMEs in Aquabusiness,(4)SustainableEnvironmental Practices, and (5) Social Responsibility in Aquaculture. Thereafter, Part I defines a set ofkey cross-cutting pillarsfor sustainable aquabusiness,whichunderpin all thePrinciples. Finally, Part Iintroduces the aim, scope, audience,intendeduse and structure of thePrinciples. Part IIpresents a set of eightGuidingPrinciplesforSustainabl