The economic evaluation of aquaculture as a climate change adaptation option in fisher communities of Zimbabwe

• Main Author: Tongowona, Admire
• Other Authors: Charteris, Ailie
• Format: Dissertation
• Language: English
• Published: University of Cape Town 2018
• Subjects: Development Finance; Climate Change and Sustainable Development
• Online Access: http://hdl.handle.net/11427/26940

Due to climate change, fisher households who depend on fishing for their livelihood are faced with a number of challenges that include low productivity. There is now an acknowledgement internationally that fishers cannot depend on hunting fish when all other food producing sectors have adapted. How economic and feasible is it for fishers to consider aquaculture in the face of climate change? This dissertation investigates the economic viability of aquaculture as a climate change adaptation option in rural fisher communities of Zimbabwe. The southern lowveld district of Mwenezi was used as a case study in the economic evaluation of pond culture and cage culture as a climate change adaptation strategy from a baseline position. Data was obtained from secondary sources which include the private sector involved in aquaculture, civil society organisations and the fishers practising aquaculture in both Mwenezi and another district, Kariba. The cost benefit analysis method of economic evaluation was used to assess the economic viability of pond and cage culture forms of aquaculture. The net present value, internal rate of return and benefit cost ratio were used as the decision criteria. Two scenarios were considered depending on the type of funding for the initial investment - scenario one was built on donor funding support while scenario two relied on a bank loan with interest for financing. A sensitivity analysis was also performed to determine the extent to which different factors affect the economic viability of both pond and cage culture. Both pond and cage culture were found to be economically viable as climate change adaptation options in fisher communities of Zimbabwe. Cage culture was found to have a higher net present value under both scenarios when compared to pond culture. However, under scenario two, pond culture was found to have a higher internal rate of return and benefit cost ratio. The inconsistencies were due to the variations in the scale of upfront investments between pond and cage culture where the latter requires a higher initial investment. Key factors that affect the viability of aquaculture as an adaptation strategy in Zimbabwe include the market price of fish, the cost of fish feeds and the price of fingerlings. While these factors are primarily economic, there are other factors which may affect the viability such as the increasing frequency of natural disasters.