Investments for sustainable fisheriesMeloy Fund
Achieving the goals of the 2030 Agenda for Sustainable Development and the Paris Climate Agreement calls for a wide range of financing sources. The private sector plays a key role here, and official development assistance can be used to leverage the private finance mobilised.
SECO takes a specific approach to harnessing private engagement for development cooperation. For example, it seeks agreements that generate funding and know-how from the private sector. It also facilitates private investments that deliver tangible development results, and it encourages public-private partnerships.
In 2022 SECO commissioned a study on the extent to which this approach contributes to sustainable development in its partner countries. While certain challenges were identified, the independent
evaluation found that SECO has been successful overall and that these projects meet the needs of its partner countries.
One example of how SECO works with the private sector is the Meloy Fund, which promotes investment in sustainable fisheries and seafood businesses in Indonesia and the Philippines. The companies in its portfolio are designed to provide local fishing communities with a livelihood while protecting natural resources.
More than a billion people are financially dependent on coastal fishing. Coasts account for some 80 to 90% of jobs in the fishing industry worldwide and half of the world's fish catch. At the same time, marine habitats with their coral reefs, mangroves and seagrass beds are crucial for climate change mitigation and resilience.
Rather than directly investing in the Meloy Fund itself, SECO finances technical assistance projects to attract further private investment. For example, technical assistance can serve to train fishing crews and other
supply chain partners in sustainable fisheries management. While the adjustments needed to implement this are often very costly for companies, they also offer better income opportunities because certified high-quality fish products can command higher prices.
A well-managed sustainable fishing business can generate a solid income. Moreover, a sound business can be relied on to repay the Meloy Fund for its investments. This lowers the investment risk for investors, enabling the Fund to offer sustainable financial services.
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Investments for sustainable fisheries
