Empowering coastal communities to build wealth and resilience.

Oceans contribute nearly US$1.5 trillion to the global economy and employ 60 million people, most of them small-scale fishers in the developing world. But small-scale fishers and coastal communities don’t capture or retain much of the wealth from the resources that lie just offshore. An estimated $10.6 billion in fish catch from small-scale fisheries goes unrecorded each year. But because they exist outside of legal frameworks and away from the formal economy, that wealth slips through their nets.

What is the formal economy?

The formal economy refers to access to formal financial services offered by banks such as savings accounts, insurance, and affordable financial loans. Most coastal fishing communities are rural and remote, far from the nearest bank. In these communities, many micro-businesses are in extra-legal status, meaning they exist outside legal frameworks. This means they cannot open a savings account or legally register for insurance. Without access to formal financial services, fishers often have to take out informal and often predatory loans that are much harder to repay.

What is financial inclusion?

Financial inclusion is the easy and affordable access to formal financial services, products, and financial literacy.

How does financial inclusion protect the ocean and the people who depend on it?

In this Rare Quotes video Q&A, Kate Schweigart, Rare’s Senior Director of Innovative Finance, explains how financial inclusion and access to the formal economy can help fishers build wealth and reduce pressure on critical ocean ecosystems. Rare’s Innovative Finance initiative does this in two ways:  Enabling access to formal financial products and services, and demonstrating the benefits of microbusiness formalization and providing actionable support to complete the formalization process.

Innovative Finance at Rare:

Anchoring economic benefits to coastal communities

The Innovative Finance initiative of Rare’s Fish Forever program empowers coastal communities to capture the benefits from effective coastal fisheries management and build their financial resilience to crises and shocks. We identify and break down barriers for fisher households and community-based businesses to access formal financial services, social safeguards, and legal protections. We work to strengthen the coastal fisheries’ value chain and the relative share that fishers can capture from it. Our goal is to increase financing directed to sustainable fisheries management and the blue economy.

  • Fishers in Zavora, Mozambique.

    Elements of Innovative Finance: Foster Partnerships

    In bringing public, private and social sector actors together, Rare helps transform the productive economy of small-scale fisheries and strengthens the relationship between community-based fisheries and local government. Partnerships are at the heart of what we do and what makes it possible.

    Example of our related activities and achievements:
    we partner with government entities at the local, regional and national level to help them understand the value of their small-scale fisheries and support them with allocating and attracting more funding to this sector.

WILL YOU GIVE TODAY?

Climate change needs behavior change.
Help us inspire change so people & nature thrive.

$25 USD $50 USD $100 USD OTHER

.

Stay Connected

Sign me up for occasional emails to learn more about Rare’s work and how I can support its mission. I know I can unsubscribe at any time.