Assessing Government Budget Allocations for the Blue Economy Sector in the Southwest Indian Ocean Region: A Case Study of Kenya, Tanzania, Mozambique, and Madagascar
Doreen Simiyu and Divon Mwamba*
ABSTRACT
To understand the financial landscape of the Blue Economy in the region, SWIOTUNA undertook an analysis of budget allocations for the Blue Economy in the SWIO region (Kenya, Tanzania, Mozambique and Madagascar) for the financial years 2021/22, 2022/23, and 2023/24. This study was conducted in 2024. The main objective was to assess government budget allocations to Blue Economy sectors, evaluate their alignment with economic contributions, and identify gaps relative to SDG 14 implementation. The analysis covered official national budgets using secondary data sources.
Kenya, Tanzania, Mozambique, and Madagascar possess extensive coastlines, unique marine ecosystems, and rich biodiversity, positioning them to benefit significantly from the Sustainable Blue Economy. On average, only about 2% of annual national budgets are allocated to Blue Economy sectors such as fisheries and aquaculture, marine transport and ports, eco-tourism, and marine renewable energy. Despite limited investment, these sectors generate an estimated USD 2.5 billion per country annually. Kenya and Tanzania provide higher absolute allocations (USD 1.12 billion and USD 0.85 billion over three years), while Madagascar and Mozambique demonstrate greater economic dependence (ocean-based activities contribute up to 55.56% and 30.14% of national budgetary revenues, respectively). Allocations show a gradual upward trend, but actual disbursements lag approved budgets by 10–20%.
The study recommends dedicated Blue Economy budget lines, a minimum 5% national GDP investment threshold, and enhanced transparency to align spending with economic returns and support SDG 14. All economic contribution estimates are indicative and should be interpreted cautiously.
