Expansion of Pelagic Fisheries in Cape Verde a Feasibility Study

Abstract

The profitability of new investments in fisheries operations is designed to take advantage of unexploited harvest potential of fish stocks in the sea around Cape Verde and off the coast of Senegal and Mauritania. The TAC (Total Allowed Catch) in Cape Verde is estimated between 38000 and 47000 tons and mainly are large pelagic (tuna species) and the mean catch is around 7500 tons per year. The status of fish stocks available to Capeverdian fisheries and the potential to be caught are analysed and available data indicates that there is a substantial scope for expanding fishing for tuna in Cape Verde waters and small pelagic in the waters off Senegal and Mauritania. Two alternative scenarios are discussed. New vessel, which means one of the vessels that are in construction and a used vessel, which means a second hand vessel that was constructed and operated in Norway. The operation plans are elaborated according to the seasons of the species and the availability of the fish stock. The profitability of fishing operations for the two vessels is studied and discussed. In order to see how the profitability of the fishing operations is changing sensitivity analyses is made by changing the days at sea, the price of fish on the market and the value of the crew share. The bank will finance the investment so a loan amortisation schedule is made to show how the loan will be repaid. The results indicate that there are possibilities to expand in a profitable way.