Mozambique’s R1.9 Billion Seafood Industry Falters as Spanish Investor Plans Exit

Mozambique’s once-thriving prawn industry has suffered another major blow after Spanish seafood company Nueva Pescanova confirmed plans to exit the country by selling its local subsidiary, Grupo Pescamar, along with a fleet of 26 fishing vessels.

The move signals a decisive withdrawal from a sector that was once among Mozambique’s most valuable export earners, and underscores the depth of the crisis now facing the country’s seafood industry.

An industry that once fuelled export growth

At its peak, Mozambique’s prawn sector generated about R1.9 billion a year, supplying high-value seafood to European and Asian markets. Coastal prawns, prized for their quality, helped position the country as a competitive player in the global seafood trade.

That success, however, has steadily unravelled. Industry sources cited by Zitamar News say Nueva Pescanova intends to leave the Mozambican market entirely, a decision that reflects long-standing structural and environmental problems in the sector.

Overfishing drains prawn stocks

One of the biggest contributors to the industry’s collapse has been overfishing. Years of poor enforcement saw frequent violations of annual closed seasons designed to protect breeding stocks.

Juvenile prawns were often harvested before reaching maturity, severely undermining the sustainability of the fishery. As stocks declined, the industry’s ability to recover weakened, making it increasingly unattractive for large-scale investors.

Environmental damage worsens the decline

Environmental pressures have compounded the problem. Sediment pollution linked to mineral sands mining in Nampula and Zambezia provinces has damaged key coastal habitats where prawns breed.

The widespread destruction of mangrove forests has further eroded the ecosystem. Mangroves play a critical role as nurseries for prawns and other marine species, but many have been cleared for timber and firewood, stripping the coastline of its natural protection.

End of an era for shallow water fishing

As conditions deteriorated, multinational operators gradually pulled out of Mozambique’s shallow water prawn fishery. Nueva Pescanova’s planned departure marks the exit of the last major foreign operator in this segment, effectively closing a chapter in the country’s seafood history.

Some industrial fishing continues in deeper waters, targeting prawns known locally as gambas. However, these are generally regarded as lower quality than coastal prawns and command lower prices on international markets, limiting their ability to replace lost revenue.

A warning for natural resource management

Nueva Pescanova’s exit is more than a corporate decision. It serves as a stark warning about the long-term costs of weak regulation and environmental degradation. Without significant reforms and restoration efforts, Mozambique’s once-lucrative prawn industry may struggle to recover, leaving coastal communities and the national economy to absorb the loss.