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Biofuels Can Anticipate a Promising Future in Sub-Saharan Africa Finds Frost & Sullivan - There is huge potential for biofuel production in sub-Saharan African countries such as Nigeria, Uganda and Angola, provided there is a concerted effort from key stakeholders
Biofuels Can Anticipate a Promising Future in Sub-Saharan Africa Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2009/02/03 - There is huge potential for biofuel production in sub-Saharan African countries such as Nigeria, Uganda and Angola, provided there is a concerted effort from key stakeholders.

   
 
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The production of feedstock and the fuel itself would ultimately lead to socio-economic improvement and, with the correct implementation and management, the controversy about feedstock used for fuel vs. food can be resolved.

New analysis from Frost & Sullivan (chemicals.frost.com), Strategic Opportunities for the Biofuel Industry in Key Sub-Saharan African Countries, finds that while the market is still in its development stage, there is extensive land available for biofuel feedstock production. Expansion of the agricultural sector to include crop production for biofuels has however been hampered by the lack of biofuel policy, limited resources dedicated to the agricultural sector, declining agricultural production and climate change.

"Sub-Saharan Africa represents a potentially lucrative market for the development, growth and use of biofuel owing to its suitable climatic conditions, vast arable land for feedstock production and the need for African countries to reduce their fuel import bills," notes Frost and Sullivan Industry Analyst Mani James. "The production of feedstocks and biofuel would improve the agriculture sector which would, in turn, promote employment and wealth creation of these communities."

Countries in this region have large rural communities that are among the poorest in the world. The majority of the fuel currently being produced from biomass is consumed by farmers for their daily operational requirements. With the correct management of the agriculture industry, the controversy about feedstock used for fuel vs. food could be resolved.

Nigeria, Uganda and Angola have a total of 245.72 million hectares of potential arable land available, of which currently only 16.4 per cent is cultivated. Therefore, sufficient land is available for the production of feedstock such as sugar cane, cassava, sweet sorghum, palm oil and jatropha.

The major challenges facing biofuel producers are the lack of infrastructure and poorly developed energy and commercial agriculture sectors. Angola has the added disadvantage of many still undiscovered landmines.

The biofuel industry is also hampered by the lack of technical skills. The impact of this restraint is expected to continue until substantial development of this industry has taken place and employees gain in experience. In addition, market information including price, quality and regional opportunities is not readily available.

"For commercial biofuel production in these countries it is important that the basic infrastructure including transport and electricity is improved," explains James. "Government participation will be important to ensure wealth creation for rural populations."

A sustainable biofuel industry in Nigeria, Uganda and Angola will depend on several factors such as political and economic stability, government policies and frameworks, enhanced market co-ordination among different market participants as well as investment and improvement in the transport, energy and agriculture sectors. Sustainable feedstock production, the creation of adequate feedstock for biofuel production without compromising food availability and improved skill, wealth and job creation will also support the success of the biofuel industry in the region.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the strategic opportunities for the biofuel industry in key sub-Saharan African countries, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.

Strategic Opportunities for the Biofuel Industry in Key Sub-Saharan African Countries is part of the Chemicals & Materials Growth Partnership Service programme, which also includes research in the following markets: polymers, chemicals used in mining and minerals. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents.

Strategic Opportunities for the Biofuel Industry in Key Sub-Saharan African Countries - M25F

 
 
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Biofuels Can Anticipate a Promising Future in Sub-Saharan Africa Finds Frost & Sullivan

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