On the occasion of Seafood4Africa, Siham Fellahi, co-coordinator of the Blue Economy Program Management Unit at the Ministry of Economy and Finance, unveiled many new elements of the future national strategy of the blue economy, in its financing component. A component that makes a paradigm shift: fewer subsidies, more financial engineering to make aquaculture projects credible, bankable and attractive for private investment.
Despite an aquatic potential estimated at several hundred thousand tons per year, the sector remains marginal in the Moroccan economy. The future national strategy of the blue economy intends to tackle this paradox, by rethinking in depth the mechanisms for financing and structuring projects. On the occasion of the second edition of Seafood4Africa, held in Dakhla, Siham Fellahi unveiled several structuring elements – and for some unpublished – of this national roadmap, in particular those relating to the financial architecture being designed, designed to support the development of aquaculture and, beyond, the maritime and coastal sectors.
An investment fund in gestation
At the heart of this strategy is the development of a thematic investment fund dedicated to the blue economy, currently being designed. Designed as a tool for catalysing investment rather than a simple extension of subsidy policies, this fund must direct financing towards structuring and bankable projects. « The idea is to make the fund a catalyst for public investment rather than to limit ourselves to the subsidy of aquaculture projects, with all the perverse effects we know, » said Fellahi. The objective is clear: to attract private capital and support the rise of projects.
Mixed finance as a structuring framework for strategy
However, the investment fund is part of a broader financial architecture, based on a mixed finance approach. This is based on the combination of concessional public resources with private capital, in order to reduce risks, improve the economic attractiveness of projects and create the conditions for a sustainable engagement of the private sector. « A financial instrument alone can in no way meet the needs of the aquaculture sector, » insisted the official, thus justifying the choice of a combined approach rather than a single device. Mixed finance thus constitutes the structuring framework of the future strategy, within which different financial levers are articulated.
Blue bonds, sukuk and guarantees: a range of instruments in preparation
In this context, risk management is a central axis of the strategy. Studies show that, in aquaculture, the risks perceived by investors are often higher than the actual risks. To correct this distortion and secure the commitment of the private sector, the Unit is working to implement risk-sharing mechanisms, in particular through guarantee and insurance schemes.
At the same time, other financial instruments are under study, in particular market tools aligned with environmental objectives, such as blue bonds and blue sukuks. These instruments are intended to intervene at different stages of the project life cycle, from start-up (financing of technical and feasibility studies, financial structuring…) to the investment and scale-up phases.
Aquaculture: a massive potential, a deficit of bankable projects
The choice of aquaculture as a priority sector is based on a widely shared diagnosis. Morocco has an estimated production potential of 300,000 tons per year, while actual production is around 3,000 tons per year.
« The challenge is not so much to mobilize additional resources as to transform this potential into concrete, credible and bankable projects, » summarized Ms. Fellahi. This gap highlights a problem that is less financial than structural, linked to the preparation of projects and their adequacy with the requirements of financial institutions.
Reduce information asymmetry between operators and financiers
Led by the Ministry of Economy and Finance, as part of the work of the interministerial commission dedicated to the blue economy, the future strategy redefines the role of the State. He positions himself as a facilitator, responsible for creating an environment conducive to private investment rather than as a direct financier.
According to Ms. Fellahi, the analyses conducted by the Blue Economy Program Management Unit (PGP) have shown a persistent information asymmetry between aquaculture operators and financial actors. On the one hand, financial institutions report limited knowledge of the sector, the real size of the market and the profiles of operators. On the other hand, project leaders struggle to present financially viable files, beyond only the technical aspects.
« The real challenge is to be able to bring into compliance the expectations of private operators and those of financial institutions, » she explained. Hence the desire to intervene upstream of financing, through the strengthening of the capacities of operators and support for the financial structuring of projects.
Inclusion of small operators
Particular emphasis will also be placed on the inclusion of small operators and new entrants, often the most penalized by difficulties in accessing financing, even though they play a key role in job creation and the territorial anchoring of the blue economy. Targeted financial instruments, enhanced technical assistance and adapted guarantee mechanisms should allow MSMEs to be integrated into the value chain, alongside larger projects.
Less direct financing, more structuring and alignment
In filigree, the guidelines unveiled at Seafood4Africa confirm that the future national strategy of the blue economy is not based on a logic of massive mobilization of public resources, but on better structuring of projects, fine alignment of financial instruments and more effective risk sharing.
An essential condition for making the blue economy a sustainable lever for growth, food sovereignty and territorial development.
source : le matin
