We were waiting for news of Aqua-Spark Africa and, although its first close will not be until early 2024, Aqua-Spark's subsidiary fund for the African continent has started to make waves today with the announcement of a whole country, Germany, as its first contributor. The German Federal Ministry for Economic Cooperation and Development (BMZ), through KfW - its state-owned investment and development bank - has committed EUR 15 million (USD 16.18 million) to the dedicated fund. In addition, it will provide a technical assistance grant of EUR 1 million (USD 1.07 million).
"Our experience combined with governments stepping up, new regulations, and funds launching leads us to believe that the need to increase blue food production, while decreasing its footprint and negative effects on our planet, is starting to reach critical mass. In addition, the solutions needed to pave the way are working, available on the market, and starting to scale up." This was one of the key findings of Aqua-Spark's Impact Report 2022 launched last summer.
That mention of government intervention takes on a new dimension in light of the news advanced today by the first fund in the world dedicated exclusively to sustainable aquaculture. The company has announced that no less than Germany will be the first contributor to Aqua-Spark Africa, its fund specifically dedicated to accelerating the development of a sustainable aquaculture industry on this continent.
"Having KfW as our anchor investor in Africa ensures we can catalyze more value-aligned investment into Africa’s growing aquaculture industry," Aqua-Spark CEO, Lissy Smit, commented on the news. "There’s no shortage of ambitious, impact-focused African entrepreneurs with great traction in their respective markets—what they need now is long-term investment that centres support for farmer livelihoods and the development of an industry that is healthy, affordable, and sustainable overall," she added.
As mentioned, the investment committed by the BMZ through KfW before the first close of Aqua-Spark Africa in early 2024 is EUR 15 million (USD 16.18 million) plus a technical assistance grant of EUR 1 million (USD 1.07 million). In announcing it, the German Federal Ministry for Economic Cooperation and Development emphasized that an environmentally, ecologically, and socially sustainable fisheries and aquaculture sector is essential for transformation of our food systems.
"BMZ is strongly dedicated to fostering sustainable aquaculture in Africa and bolstering food security," said Martin Hoppe, Head of the Division 'Food Security, Fisheries' of the German Federal Ministry for Economic Cooperation and Development. "This is why BMZ supports the Aqua-Spark Africa Fund with up to EUR 16 million, aiming to empower African aquaculture companies for enhanced productivity and ecological sustainability."
KfW, the German state-owned investment and development bank through which the investment will be made, has also highly valued its participation. "We are pleased to start a cooperation as anchor investor with Aqua-Spark, an experienced Fund Manager in the sustainable aquaculture sphere and to enable them to launch their new dedicated Africa Fund," said Alexandra Albin, Head of Nature Positive Finance at KfW. "We look forward to other public and private impact investors joining in the fund in order to work together to support food security through a thriving and sustainable aquaculture industry in Africa."
Aqua-Spark already has some tilapia farming investments on the continent - such as Chicoa Fish Farm in Mozambique or the established brand Lake Harvest -, and recently also led an equity investment for the start-up Aquarech, whose mission is to improve outcomes for Kenyan small-scale fish farmers with its mobile app platform. However, these are investments made from headquarters, and Aqua-Spark Africa intends to be something else. It is a subsidiary modeled like Aqua-Spark, but it is a specific fund specialized in this continent.
Africa's aquaculture sector is growing year on year, but demand for healthy, affordable fish still far outstrips supply in almost all regions of the continent. As Aqua-Spark's CEO Lissy Smit mentioned, there is no shortage of ambitious African entrepreneurs committed to impact and with great traction in their respective markets, but they need long-term investment.
By deploying capital to African entrepreneurs using an impact-driven investment strategy, Aqua-Spark Africa aims to stimulate local economies and create jobs; increase the availability of healthy and affordable protein, thereby contributing to food security; and also keep sustainability at the center of growing and integrated aquaculture supply chains and encourage the implementation of sustainable practices.
Aqua-Spark Africa is a dedicated fund subsidiary of Aqua-Spark. With over 300 investors from more than 30 countries, Aqua-Spark is a global community of investors committed to the future food system supporting the growth of a new sustainable, commercial aquaculture industry. Between 2015 and 2022, it invested in 26 complementary aquaculture companies. This synergistic portfolio enables the companies to support each other in a mutually beneficial way.
