Tanzania’s fishing boat modernization program creates unexpected financial burden for small-scale fishers

A well-intentioned government initiative to modernize Tanzania’s fishing industry is creating unintended hardships for the very communities it was designed to help. Launched in November 2023 under President Samia Suluhu Hassan’s administration, the program aimed to replace aging wooden boats with modern vessels for small-scale fishers in the Kilwa district and beyond.

The Ministry of Livestock and Fisheries partnered with the Tanzania Agricultural Development Bank to offer boats ranging from 16 to 46 feet through low-interest loans averaging $32,200 per vessel. The financing terms appeared generous, featuring minimal interest rates, extended repayment periods, and grace periods of five to ten years before payments begin. President Hassan personally promised these benefits during a visit to Kilwa, generating significant excitement among fishing communities that had long struggled with outdated equipment and limited access to capital.

However, early recipients are discovering that the modern boats come with unexpected costs and complications that threaten their livelihoods rather than improving them. The program was specifically designed to boost productivity, create employment opportunities, and reduce destructive fishing practices like dynamite fishing and the use of undersized nets that capture juvenile fish before they can reproduce.

While the government maintains an open application process for fishing cooperatives and provides fully insured, ready-to-operate vessels, the gap between the program’s promises and its practical impact on small-scale fishers highlights the complex challenges of modernizing traditional industries in developing nations.