LAKE HARVEST AQUACULTURE PROJECT
- Reference: P-ZW-AAF-001
- Approval date: 26/10/2011
- Start date: 03/01/2013
- Appraisal Date: 13/12/1901
- Status: OngoingOnGo
- Implementing Agency: LAKE HARVEST AQUACULTURE (PVT) LTD
- Location: Kariba
The expansion of the Lake Harvest Aquaculture (LHA) fish farm on Lake Kariba, Zimbabwe. LHA is the largest vertically integrated tilapia farm in sub-Saharan Africa and will expand production from roughly 2,500 tons per annum (tpa) in 2010 to 20,000 tpa by 2015. The company produces fresh and frozen filets and whole fish that are sold on the domestic market (37% of sales in 2010) or exported to markets in southern Africa (50%) and Europe (13%). LHA complies with strict European production standards and is the only fish farming operation in Africa certified by GlobalGap, a review body that sets voluntary standards for environmentally and socially sustainable aquaculture production.
LHA is well positioned to execute its expansion plan with favorable demand dynamics driven by several factors. From a global perspective, wild catches are stagnating or declining worldwide, meaning that aquaculture could fill the gap, and tilapia is growing in popularity as a source of white protein because of its competitive price and mild flavor. From a regional perspective, rising disposable incomes in Africa are leading to a strong increase in demand for affordable white protein such as tilapia. The number of African consumers that now have enough disposable income to introduce more protein in their diets have increased considerably over the past decade. As the largest established tilapia aquaculture operation in sub-Saharan Africa, LHA is uniquely positioned to capitalize on this growth opportunity. LHA
The economic net present value (ENPV) of the expansion is estimated at USD 64 million using a discount rate of 12%. This corresponds to an economic internal rate of return (EIRR) of 120% and confirms that the project is economically viable and will contribute to economic growth in Zimbabwe and the region. The government benefits through incremental taxes, duties, foreign exchange generation as well as lease and harvest fees. Local labor benefits from increased employment and wages.
Household benefits Positive household benefits from the project derive primarily from job creation. LHA is already one of the two largest employers in the community, and its role as a key employer will increase with the expansion. Approximately 920 new jobs will be created by the expansion evenly split between full-time permanent jobs and seasonal jobs. This equates to roughly 825 new jobs on a full-time equivalent basis. LHA
M'PENG BAYOI Daniel Constant - OPSD4