Barbadians were introduced to the potential of commercialising our oceanic resources with the creation of the Ministry of the Blue Economy in 2018. The first of its kind arguably in the Eastern Caribbean, the focus of this ministerial portfolio was towards the economic benefit that can portend for the country from our ocean resources. This development captured the imagination of many. Unfortunately, the prominence of this idea appears to be short-lived as the focus of the blue economy is now subsumed in another ministry.
With calls from noted economists for a diversification of the Barbados economy, monetising the blue economy, similar to the orange and green, represent a viable strategy to be pursued.
It is against this backdrop that the Small Business Association of Barbados recently engaged the Director of the Coast Zone Management Unit, in its monthly webinar series on a discussion around commercial benefits to be derived from the blue economy.
Small business owners and administrators were treated to a wealth of information by Dr Leo Brewster, Director of the Unit, on the value of the ocean for a myriad of business opportunities and other environmental and health benefits.
The ocean provides over half of the world’s oxygen and stores more than 50% of the carbon dioxide in our atmosphere. It regulates our climate and weather patterns, provides for maritime transportation and recreation, and contributes to the economy of the country.
Noting that for centuries the ocean has created stable conditions for the atmosphere and made it possible for life below water, today, that equilibrium has been broken. The growing emission of greenhouse gases, primarily due to human activities, has interrupted the energy balance, heating the oceans and altering their ability to absorb these gases.
The year 2023 was the hottest on record for surface temperatures, which averaged 30 degrees Celsius, whereas the average normal was between 27 – 28 degrees Celsius.
This upended equilibrium has modified the overturning circulation, altering the transport of nutrients with the consequential loss of life. It has also increased the ocean’s acidification to a degree that it can potentially collapse rich ecosystems and entire habitats.
Dr Brewster opined that the blue economy is inclusive and improves the lives of all. The idea is to promote economic growth and protect environmental locations. The blue economy uses smart shipping to lessen the impacts on the environment, is based on sustainable fisheries, harnesses renewable energy, protects coastal communities from the impacts of climate change, and conserves marine life and oceans. Modern technologies can promote government-private sector partnerships and with a scientific approach, can lead the process to avoid scammers and the misinformed.
Considering the need for economic diversification, the blue economy can contribute to the development of Barbados by providing new opportunities for investment, new opportunities for economic growth, and make Barbados a world leader as a small island with responsibility for one of the largest marine spaces in the Caribbean (186,000 kilometers).
Whereas traditional marine sectors are well known such as ship building and ship repair, cargo and ferry transport, fisheries, offshore oil and gas, these are abundant opportunities especially for small businesses.
Value to be created for micro, small and medium enterprises included marine fisheries and aquaculture; marine trade; shipping and transport; sea salt production; marine tourism; maritime education and research; non-traditional species culture; maritime surveillance; marine spatial planning, marine biotechnology; carbon sequestration; and marine renewable energy.
Small business owners can also consider fish processing, warehousing, connection with transshipment, local ship building, coastal tours, desalination (while expensive this can be linked to renewable energy to reduce electrical costs), offshore wind energy, tidal energy, and coastal environmental protection. Another potential area could be sea moss cultivation.
Fish processing provides another opportunity for advancement and expansion, and while fishing, new fish species can be identified for commercial exploitation. Dr Brewster noted that an aquaculture project was started in St Lucy in the past, and cage culture has potential as evidence from the model being used in Panama. The haul-out facility at the Shallow Draught is scheduled to come on stream shortly, and boat and yacht repair can become a viable commercial option.
At present, a number of areas being commercialised include sea turtle viewing, coastal cruises, diving, snorkeling, motorised water sports, commercial fishing, recreational fishing, deep sea and game fishing, glass bottom boats, party boat cruises, sea kayaking, jet blading, and underwater cultural heritage. There is however room for create value-added to be created.
Dr Brewster posited that seasonal whale watching will grow over the next five to seven years as humpback whales were coming to Barbados’ waters every two years. However, this activity will also require management and control, similar to sea turtle nesting.
As is the case with any business opportunity, access to capital to monetise these opportunities featured heavily in the discussion. Whereas the formation of co-operatives and consortia of businesses can prove a lucrative strategy, existing financiers must consider new areas of financial products to provide options for MSMEs who are desirous of pursuing the opportunities available. One must wonder if the continued ministerial focus on the blue economy may not have produced significant results by now in creating new industries, attracting new entrants in the market and unlocking greater financial and investment opportunity towards diversifying the economy.
