"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.