Page 68 - Research & Innovation Report 2020

BUSINESS AND ECONOMIC SCIENCES

Blue economy in need

of reassessment

“Humans have always engaged in a version of the oceans economy, with people fishing and
foraging throughout time.” – Prof Ronney Ncwadi

“While humans have always engaged in a version of the oceans
economy, with people fishing and foraging throughout time,
our findings to date indicate there are barriers to entry for the
small business sector,” says Prof Ronney Ncwadi, Director of the
School of Economics, Development and Tourism in the Faculty of
Business and Economic Sciences. “These could be linked to lack
of appropriate skills related to this sector and also lack of access to
capital to operate in this space. We also cannot turn a blind eye to
sociocultural belief systems that might prohibit some people from
entering the oceans working environment.”

Employment-wise, there is seasonal employment for fishers but
these are not ‘sustainable, decent jobs’. They don’t own boats
and they cannot access loans from the banks because they are
not formally employed. The businesses that exist, such as fishing
companies, marine tourism and shark diving, are beyond the reach
of working class people in the townships.

“The Operation Phakisa Oceans Economy model needs to be
seriously reappraised,” says Prof Ncwadi. The model estimates
that the oceans economy has the potential to contribute up to
R177-billion to Gross Domestic Product (GDP) by 2033 (compared
to R54-billion in 2010) and to create approximately one million
jobs (compared to 316 000 in 2010).

According to Operation Phakisa’s 2019 progress report: “To realise Prof Ronney Ncwadi
a GDP contribution of R177-billion by 2033, South Africa would
require a real growth rate of approximately 1.82% per annum “There are investments flowing into the ocean economy but we
from 2015; and to realise the creation of one million jobs by 2033 need to dissect the source of these investments as to whether they
South Africa would require a real employment growth rate of are from government or the private sector and what their impact is.”
approximately 4.9% per annum from 2015.”
Prof Ncwadi says another critical area of research is skills supply
“None of this has happened, quite the opposite,” Prof Ncwadi and demand: “We need an advisory board comprising the private
explains. “Projections that the oceans economy will grow South sector and the academic sector to look at what our universities
Africa’s GDP by ±4.4%, as stated in 2014, with the associated are offering in maritime studies – are they responding to the skills
growth in jobs, have not materialised. We are now in 2021 and that are needed in this sector? And are the TVET colleges teaching
instead of growth we see a decline. Sectors operating in the ocean anything related to maritime skills in their syllabus; what are they
economy show a general decline to approximately 2% of GDP, 1% covering? Practical skills related to boatbuilding or boat and
less than in 2005. engine repairs are the kind of hard skills that we need.

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