Post on 17-Jan-2018
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Agrofuels in Mozambique –
an overview
David Figdavidfig@iafrica.comPresentation to TNI-CREPE-UNAC conference, Maputo, 29 Aug-3 Sept 2009
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Issues covered Timelines in the uptake Why Mozambique? The drivers Feedstocks Some case studies Some tentative observations
and questions
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Timeline
1962-75 Liberation war 1975 Independence [25 June] 1977-92 Civil war 1994 First multiparty elections 1997+ Gradual economic recovery (over 6%
growth 2008) 2006 Investments in agrofuels begin 2007-08 Government commissions study 2009 Policy on agrofuels published [March]
Why Mozambique?Some of the drivers: Transition to a capitalist economy Donor control Land distribution Availability of water Government promotion The “Green Revolution” Role of Brazil Interest of investors
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Transition to a capitalist economy
With the end of the civil war (1977-92), reconstruction took place as part of a neo-liberal capitalist project
The IMF and the World Bank forced Mozambique to undergo structural adjustment from 1987
Denationalisation of hundreds of state firms took placeHowever Mozambique’s entrepreneurial class is very limited
Foreign investment began to be encouraged, with weaker local participation
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Donor control Donor governments provide over 40% of the
national budget They therefore shape economic planning and
projects Donor finance was involved in the assessment of
agrofuels, as well as studies on sustainability Donor sources include the EU and Brazil which
have interests in the outcomes of Mozambique adopting agrofuels
The EU directive to replace fossil fuels for transport with 10% renewables by 2020 in is creating a market for Mozambican agrofuels
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The land question
All land is state owned and land use is determined by government. Land allocated to communities has not been demarcated.
Requests for large land use by investors have to be located with provincial governors or (if >10k ha) national cabinet
There is a strong perception among investors that land is ‘empty’, available, in profusionThe Minister of Energy claims there are 36m ha of arable land, of which only 9% is in use (3.34m ha); 41.2m ha are considered marginal and are not in use.
Land acquisition has to include community permission, but community interests are often overlooked and remain unprotected
Studies are assessing land zoning and appropriate land use
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Availability of water Mozambique is also perceived as
being rich in water resources3.3m ha of arable lands have
irrigation potential (= double the amount currently irrigated)
However there have been problems with some irrigation schemes
Investors in agrofuels are finding that the southern provinces are more arid and drought-prone than they anticipated
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Government promotion Industrialisation in Mozambique
occurs in enclaves, as “grand projects”
Infrastructure is weak, and investors have to consider the provision of most services
Government has given encouragement to large-scale high-input agriculture (tobacco, cotton, sugar, other agrofuels)
CEPAGRI is the government agency especially promoting large-scale commercial agriculture
Policy document, May 2009
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The “Green Revolution” Government is using the
language of the “Green Revolution”, encouraging the industrial model of agriculture, seen as modernising production
Independent small producers become wage workers or outgrowers, dependent on corporations for seeds, livelihoods, income, extension and finance
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Role of Brazil Pres. Lula signed an agreement with the
Mozambican president in Sept 2007 to promote agrofuels in Mozambique
Brazil is providing know-how and academic exchanges
Lula claims agrofuels will strengthen Afro-Latin alliances, help fight global warming, increase jobs, assist farmers in semi-arid areas, reduce urban migration
Lula claims there is no contest with food because only 2% of arable areas are being used for agrofuels
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Interest of investors Peak oil phenomenon means that prices for
fossil oil on world markets are likely to rise Interest rates in Mozambique are high Climate consciousness has driven up the
demand for ‘renewable’ fuels Uncertain sugar market creates high
expectations for ethanol Difficulty of finding arable land in EU and
other parts of Southern Africa
Feedstocks for Mozambican agrofuels
Sugar cane (saccharum spp.) Most extensive agrofuel in Moz. Large areas viewed as available (2,34m
ha = 3% of country, according to Watson 2008)
Huge expansion suggested (enough ethanol to replace 30% of petrol consumed in SADC by 2020)
Some foreign investment (SA) Provinces: Gaza
Jatropha (jatropha curcas L) Banned in S Africa as an ‘alien
invasive species’ Produces agrodiesel Is toxic for humans and animals Some larger plantations established
with external finance (British, German, SADC)
Some projects are community based Some commercial projects have
already ceased to operate Not viable on marginal land Provinces: Maputo, Gaza,
Inhambane, Manica
Sweet sorghum (sorghum bicolor L Moench)
Yield increasing in same land area More drought tolerant than sugar
cane, high potential for semi-arid areas
Can complement ethanol production since it has a longer production cycle than sugar cane
Non-sugar part of crop can feed livestock, grain is a staple food, thus provides rather than competing with food
Province: Cabo Delgado
Copra (cocos nucifera)
Copra is the flesh of the coconut. Coconut palms thrive in humid
sunny conditions on sandy soil and are highly tolerant of salinity
Copra produces an oil high in saturated fats and results in agrodiesel
Province: Inhambane, with processing at Matola, Maputo prov. (plant capable of producing 40m litres/year)
Some case studies: the case of ProCana
Registered in British Virgin Islands Sugar cane in Massingir District of
Gaza prov. Problems with water supply affecting
operations Encroachment on community lands
allocated to people removed from Limpopo National Park
Community lands not designated or registered in Mozambique
Communities have little representation, being assisted by NGOs and UNAC, discontented with the situation
case of Sekab
Registered in Sweden, owned by municipalities, ex Tanzania
Sweet sorghum in the northern-most prov. of Cabo Delgado
Seen as transitional prior to investment in 2nd generation fuels
Regarded as being responsive to sustainability and social issues
case ofPrinciple Energy Registered in Britain, big investment by
Principle Capital 20000 ha of irrigated sugar cane for
ethanol in Dombe, Gaza prov. May 2009, announced construction of
ethanol plant worth $290m aimed at producing 212m l/y by 2013, of which $70m had been raised by 2007
JA reports that the project is in trouble, with employees not receiving pay
Some tentative observations & questions
Notion of ‘empty’ arable land needs to be explored
Energy poverty and energy security in Mozambique – not yet clear whether agrofuels can make a contribution
Largely operates as an extractive industry – does the idea of a ‘resource curse’ apply?
Does monocrop enclave commercial agriculture provide an appropriate model of development?
Is there any kind of climate dividend? Can agrofuels ever be sustainable?