Following funding approval by the CFC Executive Board approval in September 2016, the Common Fund is current completing due diligence for a USD 400,000 loan investment for Chicoa Fish Farms S.A.
Chicoa Fish Farms S.A. (Chicoa) is a Tilapia fish farm located at Lake Cahora Bassa in Mozambique. After a three year preparation phase, Chicoa is operational since 2015 and currently has a production capacity of 400 MTs Tilapia p.a. Ultimate goal for Chicoa is to have a fully integrated fish farm with 4,000 MTs p.a. production capacity as well as integrated fry and feed production on site. This farm is to be complemented by a network of out grower fish farmers, who will have access to fry and feed input. Chicoa will also serve as a hub for training and advice to farmers.
CFC resources will be used to finance part of a second development phase, which will focus on the establishment of a fish fry hatchery, development of auxiliary infrastructure (electricity and cooling) and the integration of a first group of local fishermen as “outgrowers”
A large proportion of direct and indirect beneficiaries of future economic activities induced through Chicoa belong to an extremely poor group with income below USD 0.6 per day. Chicoa will provide direct employment with training on the job to around 150 locals, who are expected to earn an average yearly salary of USD 3,500. In addition, Chicoa will also start to integrate smallholder outgrowers who are also substantially increase their income. While commencing with 20 outgrowers, the number will rise and be around 250 over time which will incur a net income of around USD 2,000 p.a. from fish farming. While Africa has excellent preconditions for aquaculture and a very large receptive market, the continent is so far completely missing out on the rapid sector development. Chicoa will serve as an example for fish farming operations in Mozambique and East Africa and may lead to the development of a competitive and relevant aquaculture industry in the region. This, in turn, may lead to employment and a more reliable supply of efficiently produced animal protein in a region that suffers from chronic under- and malnutrition.
The assessment and appraisal of the project is currently ongoing and is expected to be completed soon. This will lead to finalisation of the CFC support to the project.
|Company:||Chicoa Fish Farm||Project:||CFC/2016/08/0022|
|Estimated net economic impact:||USD 12.5 million||Outreach:||200 jobs, food security for 7,500 families|
|Total Cost:||USD 1,100,000||CFC fund’s:||USD 400,000 (expected to be financed by OPEC Fund for International Development (OFID)|