Africa: Biofuels and the Continent

Like the I-phone of the consumer telecommunications industry, Biofuels are the most talked about and most anticipated development in the energy sector. The increased attention on the production and development of Biofuels can be attributed to an international convergence of ecological, political, economic and social factors.

Africa is usually last on the list of receiving cutting edge technological investments but in the case of Biofuels, Africa is leading the charge.
Africa increased ethanol production from 100 million gallons in 2006 to already over 160 million gallons in 2007. The Mozambique Petroleum Company (Petromoc) is partnering with Brazil based INM International to raise over $400 million to invest in biofuel production. In October, fuel stations in Addis Ababa will begin to sell blended fuel, of which 5% will be ethanol. British based Sun Biofuels Plc has invested $20 million in a 9,000 hectare jatropha biofuel project in Tanzania. In Zambia BP is keen to invest in the emerging Biofuels industry and two other companies have already invested 200 million in the sector, according to the Government. The Indian Government has given $250 million to the West African Development Bank for investment in biofuel production and Nigeria plans to build over two dozen ethanol plants with assistance from Brazil by 2010. As Rachel Slater of the Overseas Development Institute has suggested “Africa’s biomass production potential is five times higher then that of the UK” and “massive potential is coming out of South Africa”.

There remains ample room for debate on the future of Biofuels, especially in relation to Africa. If we look at what is happening in Africa with a historical understanding it is clear that Africa is entering yet another cash crop boom, except this time it is not tea, coffee or cocoa, but maize – food! If selling tea, coffee and Cocoa for the past 50 years has not lifted Africa out of the development quagmire how will placing her food at mercy of commodity traders in Chicago, New York and London be any different?

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