Africa Seen as Potential Leader in Biofuel Production

For a number of reasons, including an agricultural sector that enjoys relatively low land and labor costs, many see sub-Saharan Africa as well suited to pioneer the development of biofuel as an alternative energy source for the continent and the world.

Development analysts say it may be decades before biofuel becomes a significant alternative source of energy for Africa, but significant production could mean a boost for sub-Saharan economies by both providing new income and reducing the continent’s reliance on imported fossil fuels.
Fifty-five percent of the African population ekes out a living from agriculture. Agriculture contributes 40 percent of the continent’s gross product and 60 percent of its export income. However, the agriculture sector so far has not succeeded in transforming the lives of African farmers.

For one reason, African produce is usually in unprocessed form, which commands lower world market prices. In addition, African agricultural productivity is low, averaging one ton of produce per hectare per year, in comparison to three and five tons in Asia and Western Europe, respectively.

According to the African Union’s New Partnership for Africa’s Development, Africa’s agriculture sector would require an investment of $251 billion to begin transforming living standards on the continent.

While many factors work in favor of biofuel production in Africa, some emphasize that there is a need to ensure the continent’s rural population benefits from the nascent industry.

Multinational corporations are already investing in Africa’s land and, with their ability to influence policy, individual farmers risk being left out of the production process, Okello says.

World Politics Watch