theme 6

• Biofuels

  Liquid fuels that are directly derived from renewable biological resources, especially from purpose-grown energy crops
• Biofuels and bioenergy are nothing new to developing countries. An estimated 2.5 billion of the world's poorest people rely on bioenergy every day, and biofuel production has been practised for some decades in Africa, especially in Mali where jatropha has been widely used
• Types of biofuels


  • First generation (produced from starch- or sugar-rich plants like sugar cane, maize, rapeseed, soy, palm or jatropha)
  • Second generation/advanced (produced from cellulosic agricultural and forestry wastes or lignocellulosic substances)
• Second generation biofuels are still at the experimental stage and have not yet reached an acceptable level of economic viability, but they may hold the potential for many more species of plants to be used as sources of energy, and are the most obvious way to avoid future food-versus-fuel resource issues
• Main interest groups in global biofuel market

  • Fossil fuel-importing nations seeking to reduce energy expenditures (e.g. Tanzania)
  • Countries that are biofuel exporters or seek to be so in the future (e.g. US, Brazil, Mexico, Malaysia)
• Several African countries are considering joining the ranks of substantial exporters of biofuels, most notably Angola, Ethiopia, Kenya, and South Africa
• A growing number of African countries have now enacted new, pro-biofuel national strategies, among them Malawi, Mali, Mauritius, Nigeria, Senegal, South Africa, Zambia, and Zimbabwe
• Mauritius is seeking to reach 40% of its energy needs through cogeneration using bagasse coming from the commercial production of cane sugar, and is also aiming to develop the processing of sugar cane for bioethanol production
• Nigeria, the world's largest producer of cassava, aims to work with Brazil to produce $150 million worth of cassava ethanol annually, and to establish a $100 million 'biofuel town' near Lagos
• Mozambique is developing a sorghum- and sugar cane-based biofuel sector funded by $700 million set aside for biofuel research, production and promotion
• Some African countries are participating in joint ventures with investors, such as Mozambique partnering with ICRISAT and Rusni Distilleries Ltd on a $30 million investment to establish a facility producing 100,000 litres of sorghum ethanol annually
• Wealthy countries are rapidly acquiring vast tracts of agricultural land in poorer nations, especially in Africa, to grow biofuels and food for their own consumption, raising accusations of 'neo-colonial' behaviour
• Where competing resource claims exist among local resource users, governments, and incoming biofuel producers, these 'land grabs' can bring problems
• The agreement details about a land deal in Madagascar are currently unclear and obscured further by political violence in the country, in which rhetoric about the supposed land deal has been employed by the main opposition group
• South Korea is now negotiating the acquisition of 100,000 hectares of farmland with the Tanzanian government
• A United Arab Emirates company is seeking a lease on farmland in Tanzania for rice cultivation to help secure food supplies for Gulf countries
• Foreign companies are growing sugar cane for bioethanol in Tanzania so that European countries can meet their European Union targets
• Advantages of investment in biofuels in developing countries

  • Especially in rural areas
• The sudden interest of wealthy investors can also bring problems where there are competing resource claims among local resource users, governments, and incoming biofuel producers
• These 'land grabs' can further marginalize the rural poor who rely on land for their livelihoods
• Unoccupied land is sometimes assumed to be 'idle' or 'marginal', ignoring groups such as nomadic herders who depend on land at certain times of the year
• Those with a more permanent presence on the land are also at risk, since they generally have little negotiating power against large private entities
• Under pressure from powerful forces offering comparatively large amounts of windfall cash, poor farmers may be tempted to sell their land at low prices or have their land simply allocated to investors
• Land may be categorized as unproductive simply if it is not part of the formal economy, but it may still be productive in other terms – for hunting, gathering, or pastoralism
• There is a risk that seemingly sustainable approaches to biofuels investment and plantation might be replaced with less sustainable approaches
• If biofuels production becomes profitable, existing arable land might be turned over to biofuels crop production, and biofuels crops may be planted on better farm lands if they lead to low yields on more marginal lands
• Clear land tenure policies are required to guide investments and the proper allocation of land, and must incorporate an understanding of national and local land tenure systems as well as a comprehensive assessment of pastoral practices
• Many African countries do not yet have well-thought-through biofuels policies that consider land tenure, so ad hoc decisions about land use could have longer-term repercussions
• In Tanzania, there are concerns over whether the land laws can provide adequate protection against land alienation for biofuel production, and whether compensation payments provided for in the Village Land Act (1999) are sufficient to promote alternative livelihood opportunities
• In Kenya, while the government is talking about a small-scale, pro-poor focus for its biofuels investment, there is every indication that this would quickly be dropped if there was sufficient commercial interest and investment in large-scale industrial production
• Locally attuned small-scale production may easily be replaced by externally oriented, interest-driven large-scale production if the opportunity presents itself
• In Tanzania, the emerging picture is one of investment for export with seemingly no requirements on companies to maximize value-addition within country, supply national markets, form links with local companies, adopt production models likely to maximize opportunities for poor people, or work with local communities to increase access to energy
• Cultivation of biofuels may be instrumental in long-term poverty reduction in developing countries that have a high dependence on agricultural commodities, with benefits in the form of employment, skills development and the nurturing of secondary industries
• With due recognition of local contexts, biofuel companies using outgrower and other contracted smallholder arrangements have little direct negative impacts on land access and represent a more positive model for the environment and local livelihoods
• Employment opportunities from biofuels production

  • Highly skilled science, engineering and business-related jobs
  • Medium-level technical staff
  • Unskilled agricultural work in farming, transportation and processing in rural communities
• There are likely to be trade-offs between the types of jobs created and lost, and the backgrounds of the people who stand to gain and those who have the most to lose
• Large-scale and small-scale biofuels production can co-exist and even work together to maximize positive outcomes for rural development
• New pro-poor contract-farming relationships are emerging that may better serve small-scale farmers, but these will only succeed if they are designed to be cost-effective and competitive
• Strong and thoughtful state regulation is likely needed if biofuels are truly to be pro-poor
• The rising demand for biofuels has sparked a debate over the threat that energy security poses to food security