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Aquaculture, fish resources and rural livelihoods: a village CGE analysis from Namibia’s Zambezi Region

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Abstract

Aquaculture is widely recognised as a way to reduce malnutrition and poverty. So far, research has mainly focused on Asia, and the few studies available from sub-Saharan Africa are predominantly ex-post partial analyses. By constructing a village computable general equilibrium (CGE) model, we aim to investigate whether aquaculture improves local livelihoods and simultaneously has the potential to counteract local overfishing. We apply this to a rural case study region in Namibia where malnutrition, poverty and fish resource overexploitation are current problems. Our village CGE model shows that aquaculture would be a viable livelihood activity improving household incomes and utility through labour reallocations. Furthermore, aquaculture can counteract malnutrition through increased fish consumption. Higher opportunity costs lead to households leaving the fisheries and switching to aquaculture. These substitution effects offer the possibility of reducing the pressure on local freshwater fish stocks. Policy makers can use the results to introduce aquaculture interventions in rural areas. Our findings indicate that such interventions should take particular account of the poorest households, which are most dependent on fisheries. The derived opportunity costs provide information about payments that are necessary to make policy interventions acceptable for different household groups.

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Fig. 1
Fig. 2

Source: Own figure based on Lofgren et al. (2002)

Fig. 3

Source: Own figure

Notes

  1. 1.

    For a detailed specification of the class of CGE model used, see Lofgren et al. (2002).

  2. 2.

    The key modelling power of complementarity is that it chooses which inequality to satisfy as equality. Complementary slackness means that for each choice variable we must find the optimal solution that either (1) the marginal condition holds with a strict equality; or (2) the choice variable in question must take a zero value; or (3) both of the above (Bishop et al. 2001). This implies: if there is slack in a constrained resource (leftovers), then additional quantities of that resource must have no value. Likewise, if there is slack in the (shadow) price non-negativity constraint requirement (i.e. the price is not zero) then there must be scarce supplies (no leftovers).

  3. 3.

    GAMS is designed for the construction and solution of large and complex mathematical programming models. It enables solving of various kinds of economic models including linear and nonlinear optimisation as well as equilibrium modelling (Brooke et al. 1992).

  4. 4.

    The consumer bundle of the case study region includes maize, beef, milk, fish, rice, wheat, noodle, oil, potato, orange, bread, chicken, egg and non-food items.

  5. 5.

    In contrast, the Armington (1969) assumption is based on imperfect transformability and substitutability. He used constant elasticity of substitution for imports and constant elasticity of transformation for exports, which mathematically avoid a total elimination of unproductive trade flows. Hence, he did not allow any regime shifts. No country ever shifts completely from importing or exporting a commodity (Ackermann and Gallagher 2008).

  6. 6.

    This is ensured by simultaneous adjustments in three (endogenous) components of absorption: household consumption, investment quantity and government consumption. Under other investment-driven closures (value of savings adjusts), the quantities of investment and government consumption are both fixed, only household consumption is flexible (Lofgren et al. 2002).

  7. 7.

    Marginal interventions cannot be estimated reliably within the modelling system.

  8. 8.

    A SAM is a comprehensive economy-wide data framework and represents the whole economic system by explaining all payments within the economy for a single year. It plays an important role in policy planning at the regional and village level (Morton et al. 2016).

  9. 9.

    Overall robustness: the CGE results remained robust when applying an alternative production function (Cobb–Douglas).

  10. 10.

    Livelihood diversification can be defined as the process by which rural households construct a diverse portfolio of activities in order to survive and to improve their standards of living (Ellis 1998).

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Acknowledgements

This article has been written in the context of the project ‘SASSCAL—Southern African Service Science Centre for Climate Change and Adaptive Land Management’ (http://www.sasscal.org/). The project is funded by the German Ministry of Education and Research (BMBF) [01LG1201H].

Author information

Correspondence to Steven Gronau.

Appendices

Appendix A: Stylised social accounting matrix of the Sikunga Conservancy

  Activities Commodities
(A1) (A2) (A3) (A4) (A5) (A6) (C1) (C2) (C3) (C4) (C5) (C6) (C7) (C8)
Activities
 (A1) Maize        14.08        
 (A2) Rice         187.20       
 (A3) Livestock          58.55      
 (A4) Fish resources           64.13     
 (A5) Forest resources            765.29    
 (A6) Off-farm employment             89.76 44.10 4.40
Commodities
 (C1) Maize 4.92              
 (C2) Rice       0.48         
 (C3) Livestock               
 (C4) Fish resources     12.67           
 (C5) Forest resources               
 (C6) Off-farm employment               
 (C7) Food items       21.36         
 (C8) Non-food items       3.90         
Factors
 (F1) Unskilled labour 8.80 42.85 49.18 19.33 35.99 63.40         
 (F2) Skilled labour   13.85     48.28         
 (F3) Land 7.80 130.51 16.27    0.85         
 (F4) Livestock    7.23            
 (F5) Fish     44.25           
 (F6) Forest      786.22          
Institutions
 (H1) Subsistence farmers               
 (H2) Fish and forest users               
 (H3) Skilled off-farm               
 (H4) Senior members               
 (H5) Government               
(H6) Conservancy               
 (H7) Other               
Capital
(S1) Cash savings               
(S2) Agricultural capital               
(ROW) Rest of World        41.95 4.69 9.22 10.11 0.83 21.14 69.85 70.74
Totals 21.52 187.21 72.68 76.25 822.21 138.27 56.03 191.89 67.77 74.24 766.12 110.90 113.95 75.14
  Factors Institutions Capital  
(F1) (F2) (F3) (F4) (F5) (F6) (H1) (H2) (H3) (H4) (H5) (H6) (H7) (S1) (S2) (ROW)
Activities
 (A1) Maize        3.05 2.39 0.96 1.05       
 (A2) Rice                 
 (A3) Livestock        4.03 2.38 1.22 6.50       
 (A4) Fish resources        1.95 8.18 0.03 1.96       
 (A5) Forest resources        25.83 20.31 5,84 4.95       
 (A6) Off-farm employment                 
Commodities
 (C1) Maize        18.09 11.83 5.52 6.51      1.41 7.75
 (C2) Rice        1.82 1.71 0.88 1.04       185.96
 (C3) Livestock        1.86 2.01 1.05 4.31      39.90 18.65
 (C4) Fish resources        3.39 1.68 1.06 2.13       53.30
 (C5) Forest resources        0.24 0.07 0.06 0.46   748.98    12.65 3.67
 (C6) Off-farm employment        7.84 4.20 3.97 5.98 32.89 39.86 11.13    5.04
 (C7) Food items        17.45 11.39 9.51 10.14       44.10
 (C8) Non-food items        24.45 16.11 11.59 14.69       4.40
Factors
 (F1) Unskilled labour                 27.20
 (F2) Skilled labour                 58.97
 (F3) Land                 
 (F4) Livestock                 
 (F5) Fish                 
 (F6) Forest                 
Institutions
 (H1) Subsistence farmers 76.46 14.98 5.55 3.76 1.21 9.10      17.82   0.66    12.72
 (H2) Fish and forest users 62.66 12.68 7.70 2.48 5.15 12.31      9.00      6.41
 (H3) Skilled off-farm 69.46 92.62 3.15 − 0.57 0.13 1.31      2.52      2.06
 (H4) Senior members 16.62 0.81 7.67 1.56 0.20 1.88      16.54   5.28    5.87
 (H5) Government    130.51              
 (H6) Conservancy    0.85   37.55 761.62           
 (H7) Other        0.85 0.62 0.23 0.52       
Capital
 (S1) Cash savings        14.86 13.02 121.76 − 20.94 51.73 11.19 − 14.85    
 (S2) Agricultural capital        14.54 20.58 6.29 12.54       
 (ROW) Rest of World 21.55       2.03 1.92 0.72 4.59     176.78   
Total 246.75 121.09 155.43 7.23 44.25 786.22 142.26 118.4 170.69 56.43 130.5 800.03 2.22 176.78 53.96 436.10
  1. Values reported in one-thousand US Dollars

Appendix B: Aquaculture module input data

Requirement of a 665 m2 fish pond References
Fingerlings (1000 pieces per year at 0.1 US$ each) Murphy and Lilungwe (2012)
Feed (nearly 500 kg maize bran per year at 0.175 US$ per kg) Gronau et al. (2017), Hilundwa and Teweldemedhin (2016)
Fertiliser (almost 600 kg manure per year at 0.75 US$ per kg) Nunoo et al. (2014), Quagrainie et al. (2005)
Labour costs (clearing, feeding, harvesting, monitoring, recording) at 0.51 US$ per m2 Nunoo et al. (2014)
Construction (approximately 5 labourers at 3 US$ per day and 20 days) at 300 US$ Hilundwa and Teweldemedhin (2016)
Equipment (e.g. shovels, hooks, pick-axes, tanks/buckets, boats, wheelbarrow, fishing gear) at 150 US$ (0.075 US$ per m2) Nunoo et al. (2014)
Depreciation is based on a productive life of 10 years for a pond and 3 years for the equipment (i.e. 10 and 33% respectively per year must be replaced). Nunoo et al. (2014)
Land at 98.72 US$ per pond (factor value). Own estimation
Fish at 0.4 US$ per kg (factor value). Morton et al. (2016)
Fish at 1 US$ per kg (home consumption) and 2 US$ per kg (market sales) Murphy and Lilungwe (2012); NNF (2013)
Harvesting is done once or twice a year and produces a yield of 1020 kg. Murphy and Lilungwe (2012)

Appendix C: Food composition table (FAO 2012; WFP 2017b)

Per 100 g Energy (kcal) Fat (g) Iodine (µg) Iron (mg) Protein (g) Vitamin A (µg) Zinc (mg)
Maize 353 4.5 0.0 3.5 9.0 50.0 1.7
Beef 126 4.3 0.0 2.1 21.7 0.0 3.6
Dairy 63 3.6 15.0 0.2 3.3 40.0 0.3
Fish 86 1.5 40.5 0.9 17.6 21.0 1.3
Rice 353 0.5 0.0 0.7 6.1 0.0 1.1
Wheat 351 1.5 0.0 2.0 10.4 0.0 1.8
Noodle 359 1.5 0.0 1.2 12.5 0.0 1.4
Vegetable oil 900 100.0 11.0 0.0 0.0 0.0 0.0
Potato 80 0.1 0.0 0.9 1.9 1.0 0.3
Orange 45 0.3 0.0 0.2 0.7 8.0 0.1
Bread 249 1.8 6.0 1.2 8.4 0.0 0.6
Chicken 134 5.9 8.0 1.1 20.4 17.0 1.4
Egg 139 9.5 53.0 1.8 12.6 160.0 1.3

Appendix D: Parameters used for production, utility and biological fish growth functions

  Parameter Value Unit Reference
Fish pond production function Aggregate intermediate input coefficient 24.6 Percent Own calculation
Aggregate value-added (factor) coefficient 75.4 Percent Own calculation
Feed (share parameter of intermediate input use) 31.6 Percent Own calculation
Fertiliser (share parameter of intermediate input use) 3.3 Percent Own calculation
Fingerlings and depreciation pond and equipment (share parameter of intermediate input use) 65.1 Percent Own calculation
Land (share parameter of factor use) 40.1 Percent Own calculation
Labour (share parameter of factor use) 11.7 Percent Own calculation
Fish (share parameter of factor use) 48.2 Percent Own calculation
Utility function Technical coefficient (ν) 0.25 Coefficient Winter et al. (2015)
Wealth state of household group 1 and 2 (α and β) 0.2 Exponent Angelsen (1999) and Winter et al. (2015)
Wealth state of household group 3 and 4 (α and β) 0.9 Exponent Angelsen (1999) and Winter et al. (2015)
Biological fish growth function Annual growth rate (r) 10 Percent FAO (2013)
Carrying capacity in Sikunga Conservancy (Zambezi Region); yield for tropical natural fish production systems (k) 1,600,000 kg Hay et al. (2002) and Welcomme et al. (2010)
Fish stock in Sikunga Conservancy (Zambezi Region) (F) 1,000,000 kg Hay et al. (2002)

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Gronau, S., Winter, E. & Grote, U. Aquaculture, fish resources and rural livelihoods: a village CGE analysis from Namibia’s Zambezi Region. Environ Dev Sustain 22, 615–642 (2020). https://doi.org/10.1007/s10668-018-0212-1

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Keywords

  • Aquaculture
  • Fish resources
  • Rural households
  • Village computable general equilibrium model