South Africa’s ocean economy is one of the country’s most strategically important sectors, contributing approximately 4.5% to nominal GDP, supporting more than 580,000 jobs, and anchoring trade through seven major ports. But behind these strong headline numbers lies a persistent challenge: growth in the South Africa ocean economy has not translated into inclusion for the small businesses that could benefit from it most.
Productivity SA’s latest research report, An Overview of the Ocean Economy of South Africa 2026, investigates why and what needs to change to unlock inclusive growth for South Africa’s SMMEs, in line with the ambitions of Operation Phakisa and the Oceans Economy Sector Master Plan.
Why SMME Inclusion Matters for the South Africa Ocean Economy
Small, medium and micro enterprises (SMMEs) already represent nearly a quarter of ocean-economy employment, spanning fisheries and aquaculture, ports and logistics, shipbuilding and repair, marine tourism, and marine engineering. Growing their participation has long been positioned as a lever for job creation, regional development, and reducing the concentration of the sector among a small number of large firms.
Yet the research found that SMMEs remain concentrated in low-value, low-growth segments and struggle to break into export-oriented and high-value activities, raising an important question for policymakers and industry stakeholders: is South Africa’s ocean economy policy framework strong enough on paper but too fragmented in practice to deliver inclusive growth?
Key Findings from the SMME and Trade Analysis
Using policy analysis, sectoral value-chain mapping, and econometric modelling of sector data from 2010 to 2024, the report identifies three consistent patterns shaping SMME participation:
Employment effects — overall sector employment growth was the strongest driver of SMME participation, showing that a growing ocean economy does create room for smaller players.
Export effects — export activity was, counterintuitively, associated with a decline in SMME employment share, a signal that large-firm dominance in export markets is squeezing smaller operators out rather than pulling them in.
Trade effects — seafood exports grew 8.6% in 2024 to around R9 billion, led by fresh fish and abalone into Spain, Italy and the United States, while the marine transport subsector continues to run a persistent trade deficit due to heavy reliance on imported ships and maritime infrastructure.
Barriers behind these patterns include fragmented governance across SAMSA, DFFE, the dtic and provincial authorities; limited access to finance and infrastructure such as cold storage and processing facilities; skills shortages in technical and 4IR-related maritime competencies; and regulatory burdens that fall disproportionately on smaller, resource-constrained operators.
What This Means for South Africa’s Ocean Economy
The report’s implications are clear: strong sector growth alone will not close the SMME gap in South Africa’s ocean economy. Closing it depends on how policy is designed, coordinated and enforced.
Drawing on international benchmarks, including Kenya’s blue bonds for community-led marine projects, Vietnam’s cooperative model for small-scale fishers, and the Netherlands’ maritime innovation clusters, the report recommends that South Africa’s approach should:
- Align regulation and reduce compliance costs across SAMSA, DFFE, the dtic and provincial authorities
- Introduce maritime-specific SMME financing, including support for cold storage and processing infrastructure
- Invest in technical and 4IR-related maritime skills development
- Modernise port infrastructure to lower the cost of entry for smaller operators
- Build stronger data systems to track SMME participation in the sector over time
Read the Full Report
This research forms part of Productivity SA’s broader mandate to support evidence-based productivity and competitiveness policy for South Africa’s industrial sectors. The full report includes detailed sectoral value-chain mapping, the complete econometric model and diagnostics, international case studies on Kenya, Vietnam and the Netherlands, and a full set of policy recommendations for South Africa’s ocean economy.
