Mombasa, Kenya — The blue economy is a vital source of jobs, food security, and economic opportunity across Africa and the Western Indian Ocean region. Yet, by the admission of those driving its development, the region is still only beginning to tap into what its oceans, lakes, and rivers can truly offer.
This was the central message at a panel session titled “Unleashing the Potential of the Blue Economy Through Investment and Finance”, held on the sidelines of the 11th Ocean Conference. Researchers, financiers, and policymakers gathered to shift the discussion from research insights to practical investment and financing solutions.
Africa’s blue economy already generates nearly U.S.$300 billion annually and supports about 49 million jobs. It spans 38 coastal states, vast inland water systems, and around 13 million square kilometres of exclusive economic zones. This makes it a critical pillar for food security, climate resilience and long-term economic growth in line with the continent’s 2063 Agenda vision.
Yet with this great potential, Africa’s marine and freshwater ecosystems are under growing pressure from overfishing, pollution, destruction of habitats, and impacts of climate change, such as rising sea levels, acidification of oceans, and shifting marine ecosystems. These challenges pose serious threats to the existence and stability of coastal communities on the continent.
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Experts believe that only with more investment, innovative financing mechanisms, and stronger cooperation among governments, financial institutions, and development partners can the full promise of the blue economy be achieved.
The session was moderated by Dr Paul Orina, Director General of the Kenya Marine and Fisheries Research Institute (KMFRI). He said that the continent’s blue economy potential remains largely untapped. He said the blue economy has great potential, but said that in the African region, much of it remains untapped, spanning maritime activity, fisheries, aquaculture, and blue bonds tied to mangrove conservation.
“The financing sector keeps asking us: ‘Where is the opportunity in the blue economy?’
Dr Orina said that to coastal communities that have long lived alongside rich marine resources without being able to fully benefit from them, and to a financial sector still searching for entry points. He recalled a recent exchange with bankers who kept asking the same question: where, exactly, does the opportunity lie? He said that lenders and development partners alike were eager to identify where they could intervene, but needed clarity on where the financing gaps and opportunities actually sit.
“The communities along the coast have seen the richness of our oceans, but have not tapped into it,” he said. “Where do we intervene? That is the question they often ask.”
Finance as an agent of transformation
Financial institutions have been urged to play a more proactive role in unlocking the potential of Africa’s blue economy, with experts stressing that sustainable growth anchored on the ocean will largely depend on innovative financing, partnerships, and policy support.
Peter Ngeno, head of the Corporate Banking Division at Kenya Commercial Bank (KCB), said that finance is not just a support function for the blue economy but one of its key engines of transformation.
“At KCB, we believe that finance has the power to transform economies when deployed responsibly and strategically,” said Ngeno. “The bank sees enormous potential in supporting enterprises and initiatives that strengthen the Blue Economy while creating sustainable value for communities, investors, and future generations.” “To that extent, KCB Bank is uniquely positioned to mobilise these investments by developing tailored financial solutions, supporting blended finance structures, facilitating access to green bonds, and partnering with public and private sector players to unlock capital at scale,” he said.
“The question is whether we are prepared to invest boldly enough to unlock that potential.”
But he was equally clear that no single institution, however well-capitalised, can shoulder this alone.
He said that given the multifaceted challenges confronting the oceans. He called for stronger policy and regulatory environments that encourage sustainable investment and long-term growth in ocean-based industries.
“Africa’s oceans and coastal resources hold tremendous potential to drive inclusive growth, create millions of jobs, and strengthen economic resilience,” he said. “The question is whether we are prepared to invest boldly enough to unlock that potential.”
Ngeno said that the KCB had begun co-creating activities with the State Department of Blue Economy, identifying key areas of collaboration including marine insurance and transport across the oceans, among others. “As KCB, we pride ourselves on co-creating solutions. We know that sometimes we may not have all the keys that unlock opportunities and capital at scale, but when we come together with various stakeholders, we bring our ideas together and find solutions that facilitate sustainable financing across all sectors,” Ngeno said.
Calls for turning policy into investable portfolios
Betsy Njagi, Principal Secretary in the State Department for the Blue Economy and Fisheries in the Government of Kenya, said the blue economy presents a unique opportunity to align economic growth with environmental sustainability.
She said that Kenya, alongside other coastal and island states, is increasingly positioning the blue economy as a key pillar of national development, while also contributing to continental and global commitments, including Africa’s Agenda 2063 and the United Nations Sustainable Development Goal 14 on life below water.
Achieving that SDG 14 target, Njagi argued, demands a decisive break from business as usual.
There is an urgent need to reverse destructive ocean activities that contribute to environmental degradation, she said, calling for national policies that shift waste management away from being treated purely as a public liability and toward becoming a private sector opportunity, alongside product design innovation and sustainable alternative materials that keep plastic out of marine food chains.
“Our oceans, abundant with diverse marine life, represent not only a foundation for food security, but also a multi-billion-dollar investment frontier,” she said.
“Sustainable investment ensures that growth in the blue economy is both profitable and protective.”
Njagi highlighted the vast economic potential within fisheries, aquaculture, maritime transport, tourism, and offshore energy. She said that modernising infrastructure and marine systems could unlock significant returns while strengthening resilience and inclusive coastal development. But she flagged a persistent disconnect between ambition and execution. She said that while many countries have developed national blue economy strategies, a major gap remains in translating these policy frameworks into investable portfolios, including the infrastructure, finance, innovation, and taxonomies needed to attract capital.
Njagi argued that de-risking investment through insurance is critical, warning that uncertainty, climate shocks, market volatility, and unforeseen risks can deter investors, but that financial service institutions and insurers, acting as de-risking mechanisms, can provide the confidence and stability the sector needs. She called for collective action among governments, financiers, researchers, and industry players to mobilise capital toward resilient infrastructure, innovation, and conservation-driven business models.
“Sustainable investment ensures that growth in the blue economy is both profitable and protective, securing prosperity for present and future generations,” she said.
The EU pledges over €338 million in new ocean commitments
Costas Kadis, the European Commissioner for Fisheries and Oceans, said that the conference theme, “Our Ocean, Our Heritage, Our Future,” reflects the urgency of protecting marine ecosystems in the face of escalating global pressures, including climate change, biodiversity loss, and marine pollution. He said the ocean faces global challenges, from climate change to pollution and biodiversity loss, that demand global solutions alongside multilateral cooperation, strong partnerships, and a rules-based global system. He said the European Union remains firmly committed to turning action into reality, with investment and funding as a key part of that effort.
“Investment and funding are, of course, a key part of this endeavour,” Kaddis said.
In a major announcement, he revealed that the European Union will commit 26 new initiatives valued at over €338 million to support ocean-related action across multiple thematic areas, including sustainable blue economy development. He grounded the pledge in the European Ocean Pact, adopted by the European Commission the previous year, which he said underscores a simple truth that a thriving blue economy is vital for coastal communities, food security, clean energy, innovation, and global competitiveness.
“From traditional sectors like fisheries and tourism to emerging industries such as renewable ocean energy, blue biotechnology and ocean observation, this transition requires smart investment that delivers financial, environmental and social returns,” he said. He described the EU’s approach as integrated, blending public and private funding for maximum impact, and singled out three initiatives he said were particularly relevant for Africa.
“The ocean faces global challenges… that demand global solutions.”
The first is a €2.4 million commitment for 2025 to 2028 to advance the development of a sustainable blue economy in Africa. Kadis said it would fund investor-entrepreneur matchmaking events and partnerships between African and European stakeholders. As part of this, he announced the launch of the Blue Invest Africa platform, designed to give tailored support to African startups, SMEs, and investors on both continents, building on an initiative that, since 2022, he said has grown into a vibrant ecosystem.
He also announced a €20 million programme aimed at enhancing security and safety in ports across West and Central Africa, building on earlier regional maritime security efforts. Kadis said the new initiative will improve the security and safety of 10 ports in the region, strengthening regional connectivity.
The third centres on ocean observation: a €50 million commitment to “Ocean Eye,” a new EU initiative to support and expand the Global Ocean Observing System (GOOS), coordinated by IOC-UNESCO. Kadis said the program is intended to improve biodiversity monitoring and drive innovation in ocean observation technology. He said that, in parallel, the EU is also backing African partners through the Ocean Prediction Enhancement in Regions of Africa (OPERA) programme, with a further €10 million.
Kadis pointed to a structural condition for unlocking investment at scale: regulatory clarity.
He said that businesses need predictability and a simplified regulatory framework to secure funding and investment, pointing to the EU’s forthcoming European Ocean Act, which he said aims to simplify maritime governance and strengthen strategic coordination in spatial planning.
“The EU’s commitments reflect our dedication, but real global change requires global partnerships and a shared resolve to turn ambition into collective action,” said Kadis. “The world must work together to secure a sustainable future for the oceans: ‘Our ocean, our heritage, our future.”
The tide is turning on ocean finance
Ilana Seid, Permanent Representative to the United Nations from the Government of Palau, said Sustainable Development Goal 14 on life below water remains the least funded of all the UN SDGs, despite oceans covering nearly 70% of the planet.
“Many of you probably know that Sustainable Development Goal 14, Life Below Water, is the most underfunded of all the United Nations SDGs,” she said.
She called that a real problem for ocean states, saying that the ocean covers nearly 70% of the planet, which makes it perplexing that something so central to livelihoods and to the planet’s health, including its role in absorbing excess heat, has attracted so little dedicated funding.
However, Seid said there are emerging signs of progress, pointing to recent global discussions such as the Blue Economy and Finance Forum in Monaco, where momentum around ocean investment appears to be growing.
“The money is there, but the public signals are not very clear.”
“It looks like the tide is turning,” she said. “Private sector interest in sectors such as shipping and ocean services is increasing, with investors signalling readiness to deploy capital.”
Seid emphasised the importance of strengthening ocean governance as a foundation for investment. She said that the concept of national “sustainable ocean plans,” which she said can help governments take a structured, science-based approach to managing marine resources. A sustainable ocean plan, she said, would map out competing ocean uses such as shipping routes, marine protected areas, fibre optic cables, and conservation zones, while integrating scientific data, traditional knowledge, and multi-stakeholder input.
“The ocean should not be a free-for-all,” she said. “Structured governance is essential for attracting responsible investment.”
Seid also called for stronger collaboration with development partners, multilateral development banks (MDBs) and international financial institutions (IFIs) to structure blue economy investments to reduce risk and attract private capital. She also emphasised the need to link new international instruments, such as the High Seas Treaty (BBNJ Agreement), with national ocean planning efforts to promote coherence in the governance of the oceans.
She pointed to mechanisms such as insurance, blended finance, and government guarantees as critical tools for de-risking investments in the sector. “Donor governments can help guarantee some of these instruments so that it becomes more attractive and less risky for private investors,” she said. Innovation, she added, will be central to the next phase of blue economy growth. This includes the development of new financial instruments such as biodiversity credits, as well as emerging sectors like marine biotechnology and ocean data analytics.
Seid said these areas represent significant growth opportunities that could attract venture capital and other forms of private investment. “There was a lot of potential, and then financing followed. Hopefully, in 10 years, we will see trillions of dollars in the blue finance space,” she said.
A track record of turning ambition into instruments
Small island states are emerging as key innovators in ocean finance, demonstrating how strategic investment models can link debt restructuring, conservation, and sustainable development in the blue economy. Alain De Comarmond, Secretary of State for Fisheries and Blue Economy in the Republic of Seychelles, said the country’s development path shows how ocean resources can be transformed into long-term economic and environmental value.
“The ocean is our heritage, our economy, and our future, all in one.”
“For Seychelles, we have small island states. 115 islands spread across 1.3 million square kilometres of ocean, but less than 500 square kilometres of land. The ocean is our heritage, our economy, and our future, all in one,” he said.
De Comarmond traced Seychelles’ pioneering debt-for-nature swap back to 2016, when the country partnered with The Nature Conservancy to restructure $21.6 million of external debt with the Paris Club, which he described as the world’s first sovereign debt deal dedicated to ocean conservation. The transaction underpinned a commitment to protect 30% of the country’s ocean, a target Seychelles reached in 2019, designating over 400,000 square kilometres of marine protected areas.
Today, Seychelles has designated more than 32% of its exclusive economic zone – over 400,000 square kilometres – as marine protected areas, alongside the rollout of a comprehensive marine spatial plan.
That foundation, he said, led to Seychelles’ blue bond developed with the World Bank and the Global Environment Facility to de-risk the investment environment, which he said helped attract over $5 million from impact investors, channelled through both a conservation trust and the National Development Bank of Seychelles for business and fisheries lending. “These instruments have proved that ocean health and sovereign finance are not competing priorities,” he said.
De Comarmond said that proceeds from blue financing have supported conservation efforts as well as the National Development Bank of Seychelles, helping channel loans to small businesses in the blue economy sector.
“We still have a lot of work to be done… we are calling on partners and investors to continue with us on this journey,” he said. “We stand ready to turn ambitions, designations, into implementation.”
Bring county governments in from the start
Dr Paul Otuoma, Governor of Busia County and Chair of the Blue Economy Committee at Kenya’s Council of Governors, said that while national and international frameworks are critical, county governments play a central role in turning policy into action on the ground.
He described Kenya’s structure of “48 governments, but one nation”, one national government and 47 county governments, as the practical machinery through which blue economy programs ultimately get delivered. Yet, he said, counties often find themselves brought in only after national governments and other stakeholders have already concluded agreements, leaving counties to implement programs they were never part of designing.
“Sometimes we find ourselves at the tail end of negotiations once national governments and partners have already concluded agreements,” he said.
He warned that this late inclusion creates challenges during implementation, particularly when counties are expected to execute programmes they were not adequately involved in designing. He called for stronger coordination mechanisms to ensure subnational governments are included from the planning stage of blue economy investments, enabling smoother rollout and faster impact. He argued that early involvement would also help bridge the gap between scientific research, policy design, and practical implementation at the community level.
“How do you translate an idea, a scientific research, into an actionable programme?”
He argued that early involvement would also help bridge the gap between scientific research, policy design, and practical implementation at the community level.
The artisanal fishermen who share daily life with county governments, and who are often hit hardest by climate impacts or mitigation measures. Organising and aggregating these frontline communities, he said, would work far better if counties were embedded in planning from the outset.
“These communities are the ones most affected by climate change and mitigation programmes,” he said. “We look forward to a system where we are mainstreamed from the beginning so that outcomes and impact are realised faster.”
Why can conservation and economy not be separated?
Markus Knigge, Executive Director of the Blue Action Fund, said that conservation and economic growth must be treated as interconnected priorities rather than separate agendas. He said that a healthy ocean forms the foundation of economic prosperity, particularly for rural and coastal communities that depend directly on marine ecosystems. A dependence he described as especially acute in rural coastal communities that rely on fisheries, mangrove-based storm and flood protection, tourism, and emerging value chains like seaweed farming.
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However, he warned that conservation efforts cannot succeed if they ignore the economic realities of coastal populations. “There is no healthy ocean without sustainable livelihoods, and no lasting economic prosperity without a healthy ocean,” he said.
“Sustainable livelihoods and ocean health rise or fall together.”
He said that the Blue Action Fund works to support marine protected areas (MPAs) while ensuring that conservation initiatives are aligned with local economic needs. These protected areas, he said, are not always no-take zones, but often accommodate sustainable fishing, tourism, and cultural activities. Knigge said the organisation has invested more than €200 million over the past nine years in projects that integrate conservation and economic development, making this dual approach a core requirement for funding. He said that successful implementation requires partnerships between environmental NGOs, development organisations, and private sector actors to ensure that conservation goals are matched with viable local economic opportunities.
He pointed to the persistent funding gap in SDG 14 on life below water, describing it as the most underfunded of all the UN Sustainable Development Goals.
Knigge said that achieving the global “30 by 30” target to protect 30% of the ocean by 2030 will require both public and private investment, with governments playing a leading role in financing marine protection as a public good. He argued that public funding remains essential because MPAs deliver public goods, healthier fish stocks, and reduced disaster losses, without being commercial enterprises in themselves, and because 30 by 30 is ultimately a government commitment to the world.
He singled out Germany, Sweden, Norway, Ireland, and France for their leadership in funding and guiding the Blue Action Fund.
To that end, Knigge announced the launch of a new call for proposals: €17 million for mangrove ecosystem restoration and blue carbon development in Asia, designed not only to fund restoration but to advance blue carbon as a tool for mobilising private capital toward marine 30 by 30 targets. The goal, he said, is to scale blue carbon solutions as a mechanism to mobilise capital for marine conservation and sustainable development.
“Sustainable livelihoods and ocean health, they rise or fall together,” he said. “If we want ecological, social and financial resilience, we must invest in both ecosystems and livelihoods.”
The money exists, it’s flowing in the wrong direction
Susan Gardner, Director of UNEP’s Ecosystems Division, said discussions at recent global ocean meetings show that governments are committed to building sustainable blue economies, investors are ready to finance them, and project developers have viable ideas. However, a disconnect remains between available capital and projects on the ground.
“The political will to build a sustainable blue economy is there. Investors are saying the finance is available, but project developers are telling us they cannot access it at the scale and speed they need,” she said.
Gardner recalled the Island States Ocean Summit in Tokyo, where heads of state from island nations spoke about the ocean as inseparable from their identity, way of life, and economy and repeated. She added that the political will to build a sustainable blue economy already exists; what’s missing is support and access to technology to act on it. The capital is available, but there simply aren’t enough investable projects, even as project developers insist they have viable projects that struggle to access finance at the scale and speed needed.
She said that UNEP estimates the world spends about U.S.$7 trillion each year on activities that harm nature, including around U.S.$5 trillion from the private sector and U.S.$2 trillion through environmentally harmful public subsidies.
“The money exists. It’s simply flowing in the wrong direction,” she said.
She said the ocean economy is one of the world’s fastest-growing economic sectors and is projected to expand from U.S.$2.5 trillion in 2020 to more than U.S.$5 trillion by 2050, supporting around 600 million people, with about 100 million jobs linked to fisheries, aquaculture and tourism alone.
Gardner said that unlocking this potential will require redirecting capital away from activities that degrade marine ecosystems and toward investments that protect nature while creating jobs and economic opportunities. She said that the Global Fund for Coral Reefs is an example of this approach. The initiative has mobilised about U.S.$260 million, evidence that combining finance, governance, and local action around a shared goal is achievable in practice.
“When nature declines, the foundation of your economy is weakened,” said Gardner. “But when we invest in nature-positive solutions, we unlock the extraordinary potential of a sustainable blue economy.”
