The once sleepy town of Shimoni is expected to change as Huawen Food (Kenya) Limited, a Chinese-based fish processing firm opens its doors in Kwale county.
The company is the local Kenyan subsidiary of the Jinzai Food Group Company Ltd which focuses on processing anchovies (small shoaling fish of commercial importance) known as dagaa in Swahili.
The company, located at Kibuyuni village, four kilometres away from Shimoni town, was established in 2017 as a private company and later changed to an export processing zone (EPZ) in 2018.
Shimoni boost of the most historical sites and is one of the richest towns but has for years lagged behind for lacking visionary innovations to speed up the area's economy.
The majority of residents depend on farming and fishing but are not able to grow due to poor fishing methods and a lack of market for their products.
Farming is also not doing well because of climate change.
The road network, communication system, number of businesses and land value are set to rise as the Chinese-based fish processing firm intensifies its operations in Shimoni town.
The firm is expected to supplement the multi-billion Shimoni Fish Port by providing employment opportunities to residents and supporting their socioeconomic growth through sustainable fishing and value chain addition.
Currently, the company has employed 150 residents with a production capacity of 20 tons per day but plans are underway to increase the number of workforce to more than 500 people and 50 tons per day.
In 2019, under former management, the company made its first anchovies (dagaa) harvest with an export of two containers to Malaysia.
Since the new company management took over in 2020, the leadership has managed to fish anchovies by filling in four refrigerated containers (reefers) which hold 26 metric tons each.
On Friday the firm transported its first consignment of anchovies to China by air ahead of the China-Africa trade and economy EXPO to be held in China on June 29, 2023.
The rest of the consignment will be shipped by sea afterward.
The elaborate flagging-off event was graced by the Blue Economy Cabinet Secretary Salim Mvurya and Kwale Governor Fatuma Achani.
The company's Managing Director Liu Zhiyong said the EXPO will allow Kenya to showcase what it has in store for the Blue Economy hence attracting more investors.
He said at the moment the company is providing direct and indirect employment opportunities to the residents since it buys fish from local fishermen hence boosting their source of income and livelihoods.
"We are happy to be in Kwale providing work opportunities to the local people. This is the first batch of export to China and we hope for win-win economic and trade cooperation between China and Kenya," Zhiyong said.
Zhiyong said they opted to set the firm in Kibuyuni because the anchovies are in plenty in South Coast.
He said for the first time, fishermen will have the privilege to use and own the landing site which the company is constructing for residents under the Kibuyuni beach management unit (BMU) and other BMUs.
Additionally, the investor is planning to empower the local communities through training on modern vessels, new technology and equipment as a way of capacity-building fishermen to maximise production and create more employment opportunities and strengthen the working relationship with the community.
Anchovies are best known for their Omega 3 fatty acid which promotes the health of the brain and heart among other benefits.
The director said Kenya has the potential since the anchovy business has proved to be the best aquatic business on the market scale both locally and internationally and most particularly in China.
"China has a population of 1.4 billion people and anchovies are mostly used in making snacks we can therefore say that this type of business has a profit margin which is unbelievable and that’s what made us venture into this business," he said.
Zhiyong said at the moment the company has got an export permit from China customs and that puts them in a good position to conduct and promote the business by helping local fishermen find markets for their products.
"We can help the local fisherman by buying as much as they catch hence making a lot of income," he said.
He, however, said they are faced with a myriad of challenges because the local fishermen cannot sustain their daily catch due to poor fishing methods and storage equipment which have negatively impacted the company's production.
On his part, Mvurya commended the investor for setting up the company adding that the investment will create employment and contribute to economic growth and development of the people.
He said the Kenyan government will give Huawen Food (Kenya) Ltd the required support to make the company grow.
Mvurya said the Kenya Kwanza government supports investments and job creation and is working towards making a conducive business environment for all investors.
"Job creation for our youth is the number one agenda of President William Ruto's government and we will all support that," he said.
Mvurya directed his juniors to work with the investor to fast-track the remaining legal processes for effective operations and management of the company.
He said through the BMUs the government plans to set up a storage facility to help fishermen increase the value of their fish.
The CS also warned the Kenya Coast Guard officers against harassing the local fishermen. He said they should provide assistance rather than frequently arresting innocent people who are out to get their daily bread.
Governor Achani encouraged investors to invest in Kwale saying her leadership has set a good business environment for investments and development.
Achani said her administration has prioritised matters of Blue Economy and is equipping local fishermen with fishing gear to effectively exploit the sector and improve lives.
The governor said they will give the company much-needed assistance to encourage investments.
Achani also urged leaders to work together and support investors for the benefit of residents and the economy.
