Business creation should be the motor that drives village development
This article was featured in Eurofish Magazine 1 2024.
Anila Denaj, Albanian Minister of Agriculture and Rural Development, has a long history of supporting small and medium enterprises. Her ministry includes the fisheries and aquaculture portfolio, where SMEs are a significant source of livelihoods. Her interest and experience in facilitating and developing entrepreneurship in the agriculture sector and her understanding of the challenges faced by small and medium businesses will therefore stand her in good stead when designing policies to govern the sector. In this interview she emphasises the importance of a new approach that focuses on the creation of economic activity to spur rural development.
Before your current appointment as minister for agriculture and rural development you were the minister of finance and economy, and you have extensive experience in international finance including stints in other parts of the world. Where do you see this background offering the greatest benefit to the fisheries and aquaculture portfolio that you now hold?
Firstly, thank you for this opportunity to provide information about Albania’s business and policy-making structures in the area of agriculture in general and in fisheries, in particular.
My professional life started and developed with the international consulting company IPC GmbH and then ProCredit Holding, based in Frankfurt. PCH Group developed and implemented best practices for financing small and medium businesses in 21 countries. In Albania, I started at Procredit Bank and then moved to PCH Group banks in Latin America, Africa (Mozambique), and Central Europe (Romania), among other countries. After more than 18 years in this field, I firmly believe that a development concept that focuses on strengthening SMEs can also be applied to the field of agricultural development. But the most direct connection with the sector, where today I serve as a policy maker, is the Albanian Government project and the AZHBR (Agricultural and Rural Development Agency) with its guarantee fund for the agricultural sector in Albania. As part of GFA Consulting Group, a Hamburg-based consulting company, I gained the confidence to promote entrepreneurship and access to finance from this guarantee fund. Since my time as Minister of Finance, and currently, as Minister of Agriculture, supporting access to finance for entrepreneurs has been a continuous effort. We encourage banks to lend to vital sectors, where our international partners, in addition to know-how, support them with financing to mitigate risks.
Support funds for the rural sector from institutions such as the KfW Development Bank and the EBRD, together with the guarantee fund of the Albanian government, foster entrepreneurship in the field of agriculture development in Albania. These funds, together with support from the European Union, will contribute to achieving the ambitious objectives that Albania has for this sector.
So, I have many years’ experience of using entrepreneurship and measures based on analyses of the sector’s needs to further agricultural development. Today I can use this rich background to influence policymaking and create a new approach to agriculture and rural development in the country. One which relies on investments, the dynamism of the sector, and on the participation of farmers to enable a more prominent presence on national and international markets. This will ensure the current and future economic and social sustainability of agriculture, livestock, agro-processing, fishing, and aquaculture. Although in its first steps, the work of strengthening the aquaculture sector in Albania promises to be very fruitful. The Albanian government has approved the necessary legal framework to help the sustainable development of this sector. We remain aware of the need to implement the rules and directives of the European Union, not only as part of our accession negotiations with the EU, but also to develop an environmentally sustainable sector offering high-value products for Albanian and international consumers now and in the future.
Fisheries and aquaculture are a small though important part of your responsibilities as minister for agriculture. Briefly, what are your immediate priorities for this sector? What do you see as the biggest challenge facing Albanian fisheries and aquaculture respectively?
Fishing and aquaculture remain important sectors in the Albanian economy and in our work in the Ministry of Agriculture. The strategy drawn up for the years 2021-2027, on which our work is based, gives equal importance to agriculture, rural development, and the fishing & aquaculture sectors. The fishing, fish processing, and aquaculture industries play an important role in employment, especially for women, give added value, and diversify fishing products for the domestic market as well as for export. The potential of this sector starts with the abundant Albanian waters, from marine water and coastal lagoons to freshwater natural lakes, artificial lakes (for hydropower purposes), and agricultural reservoirs. These are used for extensive and semi-intensive aquaculture activity and contribute to the reduction of poverty in rural areas. The development of this sector is strategic not only for its contribution to GDP but for increasing the economic and social stability of local and
rural communities.
Fish consumption in Albania is below the average in the Balkan area and in 2019 fell to its lowest level in four years. What efforts are being made to increase fish and seafood consumption given the health and environmental benefits?
Annual consumption of fish and fish products per capita is still low in Albania (8.6 kg) in 2017 compared to the whole of Europe (21.5 kg) in 2017 (FAO, 2020). Despite steady growth, average fish consumption per capita in 2023 is estimated at around 11 kg, well below consumption per capita in the EU which stands at 27 kg. In 2016 Albania approved the law on aquaculture as a separate law from that on fishing to promote the development of the sector. The law on aquaculture refers to allocated zones for aquaculture (AZAs) as a way of creating favourable economic conditions for farmers. In 2023 the legal act designating areas dedicated to aquaculture in coastal marine areas was approved by the council of ministers. This decision came after a long process of coordination and consultation with all the responsible ministries that have interests in marine waters, like territorial planning, transport, water resources, environmental protection, tourism, economy, and cultural heritage, and with local government bodies as well. This development will soon be perceived in the Albanian market as the volume of fish produced increases, encouraging an increase in the consumption of fish per capita in Albania. Moreover, as all the important stocks of wild marine fish are overexploited, the development of aquaculture should reduce fishing pressure on marine resources.
Albania has long wished to export its farmed bivalves to the EU but has been hindered by technical requirements. What is the status of mussel farming in Albania and what measures are being implemented to enable exports to the EU?
Yes, since 1994 Albanian exports of live bivalve molluscs have been prohibited. These products, which are of high quality, cannot reach overseas markets due to some technical deficiencies. We have drawn up a monitoring plan to overcome technical, organisational, and hygienic difficulties and to offer a product of excellent quality that meets all the food safety parameters required by the EU. The efforts made so far in specific segments to improve these indicators will be integrated into a holistic monitoring plan for all production stages.
What impacts of climate change are visible in the Albanian fisheries and aquaculture sector? How does the ministry assist the industry to implement mitigation and adaptation measures? In the long term do you see output from the fisheries and aquaculture sector increasing given the changes in climate?
Mediterranean countries are among those that are suffering the most from climate change. With its rich fish resources Albania is expected to be the most affected country of the Western Balkans in the next 30 years, both in terms of the level of availability of these resources and the air and water temperatures. Today we note with concern the reduction of fish resources, as well as the presence of alien species, such as the blue crab, which has a significant impact on the native coastal fish populations, and the migration of common species that frequent these waters to deeper waters to avoid the high temperatures of the coast.
The Ministry of Agriculture and Rural Development, as the institution responsible for the administration and management of the fishing and aquaculture sector, in cooperation with the Ministry of Tourism and the Environment, will include those sectors in the National Adaptation Plan for Climate Change, provide funding and incentives as well as non-financial guidelines, to implement adaptation and mitigation measures that support the adaptation of the fisheries and aquaculture sector to climate change. We believe that the measures that need to be taken cannot be from one country alone, but they must be the fruit of a common regional strategy, but also beyond. In the framework of the conservation of natural resources, it is worth mentioning that Albania, being a contracting party of the GFCM, has implemented recommendations regarding:
• Measures to limit fishing effort in small pelagic stocks.
• Approval of the multi-year management plan for the conservation and sustainable use of the European eel.
• Approval of the multi-year management plan for sustainable bottom fishing in
the Adriatic.
Moreover, we are actively cooperating with regional and international structures, such as GFCM, ICCAT (on bluefin tuna), and Eurofish International Organisation, for a coordinated and efficient response to minimise the damage caused by climate change.
In many countries the fishing industry suffers both from an ageing workforce and from a lack of interest among young people who regard the work as physically demanding with a lot of monitoring and control. Does the Albanian industry face the same issue? And how can the sector be made more attractive for young people?
As in EU member countries, the critical element in Albania is the lack of manpower in the fishing, aquaculture, and processing sectors. And the lack of professionalism is considered directly related to the lack of manpower. Improving production quality management requires the employment of specialised profiles. In addition, specific competencies are also considered necessary to allow various stakeholders to benefit from potential grant and funding opportunities. All these competencies are not easily available in the local market. The Albanian government has included the study programme that prepares specialists for the fishing and aquaculture sector in the priority programmes in which students are supported with scholarships that correspond to the minimum salary in the country. In addition, the employment of young specialists and excellent students who finish these study programmes is a priority of our ministry.
Today sophisticated technology is available for the fisheries and aquaculture sector which has traditionally managed with simple technical solutions. The benefits of this development are vast both for operators, for managers, and often for the environment. How does the ministry promote the use of technology in this industry?
Fishery and aquaculture producers must transform their production models more quickly and effectively using solutions based on advanced technology, and digitalization to enable satisfactory results. The transition to sustainable fish and seafood production must be accelerated; economic data show that where fisheries and aquaculture production has become sustainable, incomes have also increased. It is therefore essential to outline a renewed governance structure in the 2024-2030 programming period, which aims to:
• simplify the dialogue and coordination procedures between the central and local levels and determine the best methods of cooperation between the institutional level and operators in the national fishing and aquaculture sector;
• restart the processes of growth and competitiveness of the national fishing and aquaculture sector through proper planning of intervention in management activities by making a quantitative and qualitative assessment of the results;
• revive and protect fish stocks; regulate fishing activities to safeguard the biological renewal of the natural fish stock; introduce innovative methodologies and technologies to support the sustainability of fishing activities; and encourage and promote associations of producers in the sector.
The Russian aggression in Ukraine has pushed up the costs of energy contributing to an increase in inflation. Prices of transport, feeds, and cereals and, of course, fuel have all risen. What has been the impact on the fisheries and aquaculture sector in Albania? Does the ministry offer support to affected companies and individuals?
The government supported the energy sector with budgetary funds preventing cost increases and ensuring single-digit inflation. The IPA 2016 programme of the European Union for Albania, through the “Support for the Fishing Sector” project, managed to support the fishing sector in Albania, with a total budget of €1,500,000. About 100 applicants applied and received support for engines, refrigerators, electronic equipment, and selective fishing gears on Albanian fishing vessels. After the increase in fuel prices, the Albanian government through the Ministry of Agriculture and Rural Development and through the programme for agriculture and rural development for the year 2022, implemented a measure that reimbursed fishing vessel fuel costs at the level of 40 lek (0.39 euro)/litre for a total value of 200 million lek. This benefited all the active vessels of the commercial professional fishing fleet. The fleer was also exempted from paying turnover tax, excise duty and carbon tax.
Collaboration between companies in the fisheries and aquaculture sector and researchers in academia to discuss and solve challenges can be mutually beneficial. Does the ministry foster such interactions in any way? Is there a programme or strategy that encourages this kind of cooperation?
There is a great need in Albania to create mechanisms to promote cooperation between academic institutions and industry. The Ministry of Agriculture and Rural Development pays particular attention to including research and development institutions in the improvement of resource management and therefore the sustainability of fishing and aquaculture. External factors, such as changing policy contexts, market demands, or rising fuel prices, are challenging fishery operators and aquaculture producers to adopt new fishing/production methods. Changes in fishing gear can reduce fuel consumption and/or improve fish selectivity, for example by reducing unwanted catches. Small-scale business operators tend to focus on their core activities, the demands of work can often prevent them from connecting with the rest of the supply chain, or with other sectors. Whether it is a fisherman, or aquaculture farm, a fishmonger, or a small-scale processing company, the general tendency is to stick to what you know and do the best.
However, stepping outside the comfort zone of everyday business and using effective scientific research can lead to innovation and new sources of income. Once a new idea is born, research may be necessary to develop this idea into a sustainable business where collaboration with research and development institutions can usually help. Opportunities can arise at every stage of the value chain, starting with the artisanal fishing sub-sector, where changing working methods may require new skills, new equipment, or even new vessels, and sometimes significant investment. During the following years, Albania will improve the interaction of Albanian scientists with the European Advisory Commission for Inland Fisheries and Aquaculture (EIFAAC) of the FAO. Albania is a member of this organisation and through this membership will encourage researchers from other countries to teach Albanian students or to host promising students at their institutions to acquire the skills necessary to modernise the Albanian fisheries and aquaculture sector.