Title: Duration of fishing rights and investment: an empirical study of investment in Namibian fisheries

In June 1993 the Namibian government announced the expiration of existing fishing rights and the application of a new fishing rights system starting in January 1994. Rights are now granted for seven, 10, 15 and 20 years on the basis of investment, Namibian participation and other requirements. Data are gathered by surveys on income and expenditure to fulfil the policy conditions. In this study, part of the data are used to test if there are any statistical relationships between various factors such as levels of investment, interest rates, fishing income and quota, and the length of fishing rights. A log-linear model is derived to analyse elements that influence investment. In addition, the relationship between social contribution and length of fishing rights is explored. The results indicate that the interest rate is insignificant, while quota and fishing income influence investment. In particular, short term right holders invest almost twice as much as long term right holders. The model indicated positive net (but declining gross) investment for long term right holders. Long term rights holders also contribute more in terms of social activities than short term rights holders. Incentives for investment decisions can only be maximised if fishing company managers identify the desired expansion of investment in the sector. The government needs to revise its policy statement on investment in the Namibian fishing sector and optimal efficiency needs to be better interpreted.