Seascapes of Economic Returns: Income Distribution and Inequality in Tanzania's Seafood Trade

Abstract

Global trade in marine and aquaculture fishery products reached $186 billion by 2022, reflecting a 63% increase over the past decade and contributing to economic growth and supporting Sustainable Development Goals 1, 2 and 14. Tanzania's exports of processed small pelagic products surged to $3.9 million in 2023–2024, driven by rising demand in African markets, while exports of crustacean products to the global north reached $11.8 million. Despite the sector's contribution to economic growth and livelihoods, the influence of marine trade on microeconomic development and income distribution among actors remains underexplored. This study fills this gap by examining the distribution of trade benefits and associated inequality in Tanzania's seafood trade. The study was conducted at four landing sites in three coastal districts of Tanzania. The net income distribution approach, Lorenz concentration curve and Gini coefficient were used to analyse income distribution and inequality in seafood trade. Findings showed a significant gap in income and costs across actors in the small pelagic and crustacean value chains, with traders earning higher income than other actors. The Gini coefficients for the small pelagic and crustacean chains were 0.58 and 0.44, respectively, signifying greater income inequality among traders (aggregators and wholesalers), processors and fishers in both chains. The study recommends improving market infrastructure and institutionalising pre-trade agreements to ensure a fair distribution of benefits within the sector.