Session 6.3 Africa’s Need for Regional Bioenergy Markets

Africa’s Need for Regional Bioenergy Markets

Result: Africa Fails to Develop

Less Than 4% is Intra-African Trade


“Today’s haphazard, overlapping regional integration is proving largely ineffective, and this severely hampers African countries’ ability to compete in international markets.”

—Mo Ibrahim


But bioenergy doesn’t have to follow the same path…

Benefits of Regional Markets

• Value addition stays “at home”• Creates opportunities for SMEs• Increases demand for improved trade infrastructure• Reduces demands on foreign exchange• Supports regional development

Examples of Functioning Regional Initiatives

• Intra-COMESA trade: $3 billion (2000) to $15 billion (2009)

• Celtel (Zain)• Seacom

• Increases broadband capacity 50%• Serena Hotels

• Kenya, Tanzania, Uganda, Rwanda (EAC)• Mozambique, Pakistan, Afghanistan

• East African Breweries• Tusker, Citizen, White Cap, Bell (and spirits)

The Best Idea the World Bank Ever Had?

• DECEMBER 2005: Former World Bank President Paul Wolfowitz met with Brazilian President Luiz Inácio Lula da Silva

• “Brazil has an enormous amount of knowledge and technology related to energy and the environment that Brazil can share with the rest of the world.”— Wolfowitz

• Specific request to Brazil to transfer biofuel and green energy technology to Africa

• “It is obvious to me that the potential for partnerships between the World Bank and Brazil in exporting Brazilian know-how is large and only beginning to be tapped.”—Wolfowitz

Economic Community of West African States (ECOWAS)

Source: US Energy Information Administration 2007Source: US Energy Information Administration 2007

Total Annual Foreign Exchange Savings:US$301 millionSource: US Energy Information Administration 2007Source: US Energy Information Administration 2007


East African Community


East African Community

Total Annual Foreign Exchange Savings:US$334.7 millionSource: US Energy Information Administration 2008Source: US Energy Information Administration 2008

Southern African Development Community


Southern African Development Community

Without SA:US$444.57 million

Total Annual Foreign Exchange Savings:US$1.415 billion


UK-Brazil Study on Southern African Biofuels

UK-Brazil Study on Southern African Biofuels

• Double from 700,000 ha to 1.5 million ha in 10-15 yrs• Double sugar production for local consumption • Produce 7.3 billion litres of ethanol annually• Create 300,000 direct jobs & 700,000 indirect• Avoid US$1.6 billion in gas imports • Receive US$2.9 billion in revenue

Source: E4Tech (UK)Source: E4Tech (UK)

What Needs To Be Done?

• Strengthen regional markets: Food & Fuel

• Access and Infrastructure

• Develop regional policies• Blending mandates• Feed-in tariffs for renewable sources

• Mini-grids for rural areas

What Needs To Be Done?

• Develop low-cost technologies using local resources for local needs

• Invest in agricultural research and extension services to increase productivity/efficiency

Thank you for your attention.

www.pangealink.org

Session 6.3 Africa’s Need for Regional Bioenergy Markets

Documents

Transcript of Session 6.3 Africa’s Need for Regional Bioenergy Markets