China’s Guangxi Crown Fisheries is reportedly creating a $150 million joint venture with a Mauritanian company to launch the Sunrise Oceanic Resources Exploitation Company (SOREC).  The joint venture, which will be located in the West African country, is planning to build a fleet of 20 40-foot long fishing vessels that will fly the Chinese flag and will deliver their catch to Chinese ports, in exchange, a large-scale processing facility will be constructed in Mauritania.

SOREC plans to commercially fish along the 700 kilometer coastline of Mauritania with the goal of catching 1.46 million tons of mostly pelagic fish per year.

Construction on the processing facility had begun in April near a newly established port in Dakhlet Nouadhibou province. Once completed in April of next year, the facility will be the biggest of its kind in the country with annual production of 50,000 tons. The site will de-head and gut fish as well as produce fishmeal and fish oil, and will include storage for 8,000 tons of products.

Undercurrent News reports that the framework of this deal follows closely other large-scale Chinese investments in developing countries, whereby Chinese companies often form joint ventures with local companies to build infrastructure in exchange for access to a region’s natural resources.

Trying to Protect its Fishing Industry

With one of the richest fishing grounds in the world, the fishing industry is the second largest earner of foreign exchange for Mauritania after mining. The sector accounts for 10 percent of the country’s GDP and between 35 and 50 percent of its exports, while employing 36 percent of the population.

In order to protect this key economic driver, Mauritania adopted its “Fisheries and Aquaculture Strategic Management Plan” between 2008 and 2012 that was supposed to ensure that investments within the space were held to sustainable management of resources, and provide socio-economic benefits, employment and poverty reduction.

Despite this plan being in place, subsequent agreements forged with Chinese partners have diverted from its intent.

In response, Mauritania launched a new Fisheries Transparency Initiative (FiTI) on February 3 of this year as a means to end secretive fishing contracts. Through the dual ideas of transparency and participation, the collaboration between the government, business, and society can result in better management of natural resources.

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Lynda Kiernan