Government has signalled its intention to revise the Marine Living Resources Act (MLRA), potentially ushering in an important new process that will require close collaboration between the Department of Forestry, Fisheries and the Environment, the fishing industry and a range of other stakeholders. One of the issues likely to receive attention during this process is the question of fisheries tenure: how long commercial fishing rights should be allocated for, and what effect the duration and security of those rights has on sustainability, investment, transformation and economic performance.
To help inform this discussion, the South African Deep-Sea Trawling Industry Association (SADSTIA) commissioned an independent review by fisheries scientist Professor Kevern Cochrane, a globally respected fisheries management expert.
Prof. Cochrane’s report, A review of international experiences in the security of tenure in fishing rights, examines how different countries structure fishing rights systems and what lessons can be drawn from those experiences for South Africa’s deep-sea trawl sector.
The study notes that South Africa’s current fisheries legislation limits the duration of commercial fishing rights to a maximum of 15 years, after which those rights automatically terminate and revert to the state for possible reallocation. However, many of SADSTIA’s members report that the current tenure period may be too short to support the level of investment required for long-term participation in a capital-intensive fishery such as the deep-sea trawl fishery for hake. It was this concern that prompted SADSTIA to commission the review.
The scale of SADSTIA members’ investments is considerable. According to the report, replacement costs range from approximately R8 million to R80 million for smaller fishing vessels and up to R290 million for large trawlers. The combined estimated investment in vessels and processing infrastructure in the fishery is approximately R7.6 billion.
Prof. Cochrane’s review begins by examining the theory behind rights-based fisheries management. He explains that limiting access to fisheries through structured systems of fishing rights has become internationally recognised as essential to preventing over-exploitation, over-capacity and economic inefficiency. Well-designed rights systems are intended not only to protect fish stocks and ecosystems, but also to allow fisheries to operate in socially and economically optimal ways.
The report identifies four key characteristics of fishing rights: exclusivity, security, transferability and duration. While all are important, the primary focus of the review is on duration and security, and the relationship between them.
A central conclusion of the study is that longer-term or secure rights generally create stronger incentives for responsible stewardship and long-term investment. According to the report, where rights holders have confidence in their future in a fishery, they are more likely to invest in vessels, processing facilities, product quality, skills development and sustainable harvesting practices.
The report notes that this principle is widely recognised internationally. It cites a commonly accepted fisheries management guideline that fishing rights should be allocated “for sufficient length to encourage stewardship and appropriate investment by shareholders and associated industries”, either through perpetual rights or long-term allocations with a strong expectation of renewal, provided regulations are adhered to.
The study does not argue that longer rights are automatically preferable under all circumstances. Prof. Cochrane also considers the trade-offs involved. For example, governments may wish to retain flexibility to adjust fisheries allocations over time in pursuit of social, political or ecological objectives. Fishers and investors, by contrast, tend to favour greater security and longer terms to justify major investments and support long-term planning.
This tension is particularly relevant in South Africa, where fishing rights allocation has historically been used not only to achieve ecological and economic objectives, but also to advance transformation within the fishing industry. In the hake deep-sea trawl fishery, this approach has contributed to a substantial shift in ownership patterns over time and, according to government estimates, the fishery is now approximately 86 percent black owned.
Prof. Cochrane does not advocate a particular policy outcome. Rather, his review argues for balance: sufficient security and duration to encourage investment and responsible behaviour, while still allowing governments the space to pursue legitimate policy objectives where necessary.
To explore how different countries approach this balance, the report reviews fisheries management systems in Australia, Canada, Iceland, Namibia, New Zealand, Norway, Peru and the United States, among others.
Several countries examined in the report, including Australia, Iceland and New Zealand, allocate fishing rights effectively in perpetuity. Norway grants offshore fishing concessions indefinitely, while Canada issues annual rights that, in practice, carry a very strong expectation of renewal.
The United States takes a different approach. Rights are limited to a maximum of 10 years under the Magnuson-Stevens Act, but with a legal commitment that they will be renewed except under exceptional circumstances. According to the report, this high degree of certainty has created conditions that encourage investment, economic development and sustainable use of fishery resources.
The report contrasts this with the wording of South Africa’s MLRA, under which fishing rights automatically terminate at the end of the allocation period and revert back to the State.
Namibia’s fisheries system is also examined in detail. There, between 1994 and 2001, rights were granted for up to 10 years. The maximum duration was subsequently extended and rights may now be granted for periods of seven, ten, 15 or 20 years depending on the fishery and level of investment involved. One of the motivations for longer-duration rights in Namibia is the need for fisheries to remain competitive in international seafood markets, which requires sustained investment in efficiency, quality and processing capacity.
Across the case studies reviewed, Prof. Cochrane finds a consistent pattern: where rights holders have confidence in long-term access to a fishery, fisheries generally become more efficient, product quality improves, investment increases, employment becomes more stable and operators are better able to compete in demanding seafood markets.
The report also notes that transferable rights systems, such as individual transferable quotas, often reinforce these outcomes. However, the review stresses that the value of transferability itself depends heavily on duration and security of tenure.
Importantly, the study warns that ineffective or weakly implemented access rights systems can have serious consequences. Examples from China, Ghana and Thailand show that where fishing capacity is not effectively controlled, fisheries can become characterised by over-capacity, economic inefficiency, over-exploited resources and high levels of illegal, unreported and unregulated fishing.
The report concludes that in mature, capital-intensive fisheries such as the South African deep-sea trawling industry, rights of sufficient duration (or systems with strong confidence in renewal) are important for encouraging investment, supporting local economic development, promoting meaningful participation by right holders, enabling SMMEs to develop, creating employment and encouraging long-term stewardship of fishery resources.
At the same time, the report emphasises that where governments anticipate future structural changes in fisheries, uncertainty can be reduced through transparent policy processes, clearly articulated transition arrangements and clarity around renewal criteria.
As South Africa considers possible revisions to the MLRA, the report contributes an international perspective to a complex policy discussion that lies at the intersection of sustainability, economics, governance and long-term investment in the fishing sector.
Professor Kevern Cochrane is an internationally recognised fisheries scientist and a Visiting Professor in the Department of Ichthyology and Fisheries Science at Rhodes University. He began his career in fisheries science in Zimbabwe and South Africa and from 1995 to 2012 worked for the Food and Agriculture Organization of the United Nations in Rome where he held senior positions. Prof. Cochrane has worked extensively in Africa and internationally, advising governments, regional fisheries bodies and international organizations. He is also widely known internationally as co-author, with renowned fisheries scientist Serge Garcia, of A fishery manager’s guidebook, a major reference work on fisheries governance and management.
