Service Issue 85

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ocean economy
Ocean innovation and
the blue economy
The world’s oceans and seas, critical in the broader climate change
discussion, also offer a wealth of new, sustainable business opportunities.
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Torsten Thiele, founder of the Global Ocean Trust, believes Africa
has an opportunity to leapfrog more developed regions in the blue
economy space. The blue economy, defined by the UN as a range
of sustainable and socially equitable economic activities related to
the oceans, seas and coastal areas, offers immense opportunities to
investors, entrepreneurs and communities.
KEY OPPORTUNITIES FOR AFRICA
“In Africa, the opportunity is vast,” Thiele says. “Because there is
less traditional infrastructure in place, there is room to build a
new blue economy, faster. Per dollar invested, the returns to be
achieved in a blue economy are larger in Africa than they are in
more developed countries.”
Thiele says, “Seaweed alone is a great sector, for example. You can
eat it, use it to replace plastic, for biofuel, fertiliser, cosmetics and
more.” The World Bank estimates that 10 emerging global seaweed
markets have a potential growth of up to $11.8-billion by 2030.
Nassim Oulmane, acting director of the technology, climate
change and natural resource management division at the UN
Economic Commission for Africa, believes one of the most
promising opportunities in Africa’s blue economy lies in blue
carbon development and the trade of related credits, particularly
in mangrove, seagrass and tidal marsh ecosystems. He says, “These
ecosystems have a remarkable capacity to sequester carbon and
greenhouse gases, surpassing even tropical forests in efficiency.
The related carbon credits are in high demand across global
markets, offering a significant incentive for increased investment
in ecosystem conservation.”
Oulmane says a notable success story is the “Mikoko Pamoja”
project in Kenya, which exemplifies the potential of blue carbon
initiatives. “These ventures not only combat climate change but also
foster the sustainable livelihoods of local communities, including
youth and women employment and educational opportunities.
Additionally, they contribute to the development of water treatment
facilities, aligning with Africa’s commitments to the Paris Agreement,
the Convention on Biological Diversity (CBD), Sustainable Development
Goals (SDGs), Agenda 2063 and more,” he says.
“Furthermore, innovative approaches that enhance the protection
and conservation of seagrass and mangroves hold substantial promise.
For instance, by increasing seagrass protection, it is estimated that the
world could save 650-million tons of CO2 annually [World Bank].
Similarly, bolstering mangrove conservation efforts could prevent
flooding for six-million people and help countries avoid losses of
productive assets valued at approximately US$24-billion [World Bank].”
However, the degradation of the oceans is such that we need to
accelerate our efforts and move to a much larger scale. That’s why the
Great Blue Wall initiative, led by IUCN and UNECA in partnership
with other actors such as OceanHub Africa, is a real innovation.
This initiative, championed by several coastal African countries,
focuses on cooperation in the fields of the blue economy, ocean
regeneration, maritime safety and the sustainable management of
marine resources in general. It aims to establish a first-of-its-kind
connected network of seascapes to benefit people and nature. The
initiative presents innovative approaches to safeguarding the oceans
while promoting economic development and providing a blue
response to climate change and its negative consequences.
INVESTMENT TO GROW NATURAL CAPITAL
Thiele says guided investment is needed to grow natural capital.
“Instead of building the economy with a capital-intensive approach,
a science-based approach should be taken to build innovative African
startups, which requires less capital and delivers greater returns over
the longer term.”
He notes, “The traditional venture finance model is one of ‘winner
takes it all’ so investors tend to run with ones which have really large
returns. However, project finance is more appropriate for the blue
space, to help build sustainable, solid blue businesses. It is a longerterm
approach, the way we used to build businesses.”
Thiele says financing flows for blue economy projects remain a
hurdle. “Large investors don’t always see the pathways to get the
money to the investments. We need to construct the pathways.” He
notes that the Ocean Risk and Resilience Action Alliance (ORRAA)
drives investment into coastal and ocean natural capital through
finance and insurance products that reduce risk. “The Alliance helps
to develop guarantee facilities and build the support mechanisms.
It’s a very dynamic conversation and it may sound complex to
investors. It’s a constant handholding argument. However, we have
been encouraged to see that large financial institutions are showing
interest – particularly through their sustainability divisions.”
Thiele believes forums such as the Ocean Innovation Africa
Summit offer an important opportunity for multiple sectors across
blue economy value chains to share ideas.
CHALLENGES AND THREATS
“A challenge for ocean-focused networks is they don’t have
connectivity into other sectors. We need collaboration across value
chains, including stakeholders in terrestrial climate, business,
technology and finance. All sectors need to consider the world’s
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