MOZAMBIQUE CONSULTANCY REPORT ON BIO-FUEL STUDY ...
MOZAMBIQUE CONSULTANCY REPORT ON BIO-FUEL STUDY ...
MOZAMBIQUE CONSULTANCY REPORT ON BIO-FUEL STUDY ...
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<strong>MOZAMBIQUE</strong> <strong>C<strong>ON</strong>SULTANCY</strong> <strong>REPORT</strong> <strong>ON</strong> <strong>BIO</strong>-<strong>FUEL</strong> <strong>STUDY</strong><br />
1. INTRODUCTI<strong>ON</strong><br />
African countries have relied on fossil fuels, hydropower and biomass to meet energy demands<br />
for the urban and rural needs. Concomitantly, the supply of fossil oil has been affected by<br />
dynamic economic, environmental, and political and security instability throughout the world.<br />
This has lead to the current high and volatile prices that affect the prices of many other<br />
commodities such as agricultural inputs as well as food products. Mozambique is one of the<br />
countries whose citizens rose up and manifested against the ever increasing prices of oil and the<br />
effect on their lives, particularly transport costs and food. Energy is a fundamental engine for<br />
economic growth and the current inability to sustain the supplies at reasonable price will have a<br />
short and long term impact on the ability of the countries like Mozambique to deliver on its<br />
poverty reduction strategy and achieving the Millennium Development Goals.<br />
The Vision 2025 for Mozambique prioritises the supply of energy and expansion to rural areas as<br />
a necessary step towards equitable development and poverty reduction. The PRSP for 2009-2009<br />
(GoM, 2006) highlights the following priorities: transformation of agriculture to increase its<br />
competitiveness in the international markets as well as the formulation of a national sustainable<br />
energy policy, promotion of investments in dams for production of hydroelectric power and<br />
guarantee the sustainable use of natural resources. In addition, the government pledges to increase<br />
the distribution of the network of distribution of liquid fuels including diesel, unleaded petrol,<br />
introduce the use of gas for transportation as well as search for alternatives such use of solar,<br />
wind and biomass energy to counter the deficit.<br />
Besides fossil fuels, over 70% of the population in Mozambique rely on biomass energy such as<br />
firewood for their domestic needs. For many decades this has impacted negatively on the natural<br />
resources, principally deforestation around the main urban centers of Maputo, Beira and<br />
Nampula. State led energy plantations of the late 70’s and early 80’s, agroforestry and community<br />
forestry that followed have all failed to provide an alternative (to deforestation of natural forests)<br />
due to the intrinsic characteristics of the exotic species, lack of capacity (financial and<br />
managerial) on the part of the government and, unclear land and tree property rights, which were<br />
crucial for community involvement.<br />
Therefore, Mozambique continues seeking for alternative sources of energy through increased<br />
production of hydroelectric power and expansion of the supply network to rural areas, exploration<br />
of natural gas, improved efficiency of energy biomass energy utilization, prospecting oil in the<br />
major river basins, particularly Rovuma in the North of the country as well as seeking the<br />
introduction of biofuels. This led the country to start a campaign at high political level to<br />
mobilize people to engage in plantation of Jathropha for further processing into biodiesel. Again,<br />
the poor planning of this process is reflected on the fact that people were urged to embark on<br />
plantations in most cases of uneconomic units without a strategy for marketing the raw material<br />
or support in training on and establishment of simple processing technologies. Yet Mozambique<br />
is considered in the UN Framework (2007) as one of the four countries in Africa that has a policy<br />
framework for biofuels. As it will be seen later there is definitely a political will to embark on<br />
large scale production of biofuels, but there is no clear policy and strategy as yet.<br />
Mozambique is considered by analysts as one of the African countries with the largest biofuel<br />
production potential. Researchers affiliated with the International Energy Agency estimate that<br />
Mozambique can produce around 7 Exajoules of biofuels sustainability. The country currently<br />
1
consumes around 0.18EJ. Consequently this would lead to full energy independence, with<br />
capacity to spare to supply international markets.<br />
The country is under pressure to embark in a grand scale production of biofuels. Ethanol and<br />
biodiesel are two liquid biofuels which can potentially be produced from vegetative materials<br />
such as respectively sugarcane, cassava and maize and, coconut, cotton, groundnuts and sesame.<br />
Besides meeting the demand for energy, the production of biofuels is also credited with having<br />
potential impact in reducing the emission of green house gases, hence contributing to mitigation<br />
of climate change. Further the production of biofuels is believed to have a great potential to<br />
contribute to poverty alleviation in the country.<br />
Amidst this situation, WWF SARPO has commissioning a study to analyse the existing policy<br />
and institutional frameworks supporting the production and commercialization of biofuels, the<br />
sustainability of supply and markets, distribution of benefits and capacity of various stakeholders<br />
involved in the process (WWF SARPO, TOR). Further, questions are raised with regards to<br />
potential risks to food security due to competing land use and marginalization of local<br />
communities particularly with respect to security of land tenure. For example, FAO is already<br />
engaging in projects to seek to establish the impacts of biofuels on food security and approaches<br />
to compilation and analysis of biofuels statistics. Information is fundamental aid to decision<br />
making besides facilitating the monitoring of the impact of the pursued policy options.<br />
A particular focus of this study was the Zambezi river basin Delta) which supports a large area of<br />
wetlands offering good agroecological conditions for growing sugarcane and other biofuel crops.<br />
The objectives of the study include: (i) Carrying out a survey of existing bioenergy policies and<br />
technological capacity in the production process in each site. (ii) Describing levels of production,<br />
the drivers of the production (big companies) and status of out grower schemes/ communities in<br />
each site including an analysis of capability, land availability, technology, investment and crop<br />
quality as well as potential environmental impacts. (iii) Evaluating the economic and financial<br />
potential for the community/out grower schemes and likely contribution to national strategies on<br />
energy, poverty reduction and likely impact on the environment. (iv) Providing a critical<br />
comment on the economics of biofuels production and marketing as well as propose<br />
improvements to ameliorate the social and economic benefits of the current and future schemes.<br />
(v) Articulating the manner of support that would ensure that this capacity is used effectively.<br />
The report is outlined as follows: a brief presentation of data collection approach followed by a<br />
section analysis the socio-economic context as regards energy consumption in the country and the<br />
existing policy and institutional policies as well as gaps. Then an analysis of the various<br />
initiatives that are being planned or implemented is conducted in the next section. The final<br />
section draws some conclusions and recommendations.<br />
2
2. METHODOLOGY/APPROACH<br />
UN (2007) has developed an analytical framework that highlights various sustainability issues to<br />
be considered in the process of decision making on whether to embark bioenergy production as<br />
well as checking on the impact. The framework includes issues such as the provision of bioenergy<br />
for the poor, implications for agro-industry and employment, the impact on the structure of<br />
agriculture and food security, possible impact on health and gender taking into account that<br />
women in developing countries are the main producers and users of biomass for energy with<br />
consequent health impacts. The article on IRIN website poses the following important question:<br />
‘Africa: food to eat or run a car?’. There is need to determine the trade offs associated with<br />
bioenergy and food security to aid an informed decision making on land use, technology and<br />
labur use. Other issues suggested by the framework include the financial support from<br />
governments or impact on the budget, implications on trade, foreign exchange balances and<br />
energy security, impacts on biodiversity and natural resources management and on climate<br />
change. However, the broad categories of issues that this framework recommends are: (i) the<br />
existing knowledge on the resources, demand and technologies; (ii) overall policy and rural<br />
development priorities, land use, environment, industry as well as existing initiatives in research<br />
and development. This study analysed the extent to which the various aspects mentioned in the<br />
framework are considered in the ongoing decision making regarding the biofuels.<br />
The study as such consisted of literature review, interview (face-to-face and telephone) of various<br />
individuals representing various institutions engaged at:<br />
policy development level such as the case of the Ministry of Energy particularly the<br />
National Directorate of New and Renewable Energy, the Centre of Promotion of<br />
Agriculture (CEPAGRI), the National Directorate of Lands and Forestry (DINATEF),<br />
the National Directorate of Conservation Areas (DNAC) particularly the Transfrontier<br />
Conservation Areas (TFCA) Unit which oversees the activities in the Great Limpopo<br />
Transfrontier Park, the National Directorates of Environmental Management (DNGA)<br />
and Environmental Impact Assessment (DNAIA).<br />
Government institutions facilitating implementation of the policy and legal framework at<br />
the local level in Sofala province including the Provincial Director of Agriculture and<br />
the Head of the Provincial Services of Forestry and Wildlife in Beira and the Provincial<br />
Directorate of Agriculture in Gaza province. It was also possible to meet the Head of the<br />
Administrative Post (the lowest administrative unit in the country) of Xinavane in<br />
Manhiça district in Maputo province as well as the technical assistant for the sugar cane<br />
associations of the same administrative unit.<br />
Research institutions such as the Faculties of Agronomy and Forestry and Faculty of<br />
Engineering (FAEF) of the Eduardo Mondlane University (UEM) both conducting<br />
research in areas of bioenergy from the study of ecological aspects associated with<br />
various species as well as the various processing and efficient use technologies.<br />
Community conservation and development practitioners such as the African Wildlife<br />
foundation (AWF) supporting one of the affected communities by this (biofuels)<br />
initiative and WWF with overall concern on conservation and management of protected<br />
areas in Mozambique.<br />
Interviews were also held or attempted with investors 1 such as SEKAB or Eco-energia,<br />
and Açucareira de Xinavane (Tongaat Halett) in Maputo, Açucareira de Moçambique in<br />
Mafambisse in Sofala (outside the Delta) and Açucareira de Marromeu.<br />
1 Unsuccessful attempts to meet PROCANA manager – travel.<br />
3
Interviews were also held with two community associations producing sugar cane under<br />
contract agreement with Açucareira de Xinavane in Maputo province.<br />
In total 22 interviews were conducted including a sample of over 30 people (Appendix 1)<br />
between 27 th April and 9 th May 2008 2 . The consultant also attended a seminar on biofuels in<br />
Maputo organized by FEMA 3 , which is a forum of private sector for environmental management.<br />
The TOR limited the study area to wetlands and particularly the Zambezi Delta. Nevertheless, for<br />
practical reasons particularly the relative absence of ongoing activities in the area led to opening<br />
the scope of the study. In fact, the telephone interview with the manager of the Açucareira de<br />
Marromeu and local government authorities in the Sofala province established that there were<br />
only fuzzy plans for production of bioethanol from molasses and bagasse which is currently<br />
exported. The company manager reiterated that any future involvement of the company in<br />
production of biofuels would be determined by the approval of the government strategy in this<br />
regard and the initial phase of such production would be directed to internal use by the company<br />
to reduce its current soaring cost of production due to high cost of fuel. Furthermore, the<br />
members of the management board of the Açucareira de Mafambisse were engaged in a two day<br />
meeting, hence only available for a telephone conversation.<br />
Consequently, looking at the ongoing or planned activities to produce biofuels at a larger scale<br />
seemed to be a more rational approach. However, there are obviously trade offs between the<br />
ability of undertaking a detailed analysis of financial and economic viability of the involvement<br />
of small-scale farmers in biofuels production versus a broad understanding of the challenges of<br />
withstanding an external pressure to license the biofuels production and, meeting goals on<br />
environment, eradication of hunger and poverty. These are important millennium development<br />
goals that the government subscribes to and strives to deliver on, and implicit the TOR as they<br />
raise the concerns over the livelihoods of the people and environmental sustainability.<br />
The findings of the study are integrated in the discussion of policies to illustrate the interface<br />
between the good policy intentions for example regarding land allocation procedures and<br />
participatory natural resources management and practice. The dilemmas and conflicts between<br />
existing rights and ‘superior’ rights of investors for biofuel production and other economic<br />
activities highlight some of the inefficiencies in policy implementation.<br />
2 Travel time included, time limitation did not allow meeting with institutions such as Technoserve, GTZ,<br />
the World Bank, the Italian Cooperation and consulting companies such as KPMG and Sal e Caldeiras all<br />
perceived to interests in the biofuels or contributing in various ways. Although the Açucareira de Xinavane,<br />
was visited, the managers were not authorised to discuss the issue and instead recommended to contact<br />
Tongaat Hallet in South Africa. The information regarding production of biofuels presented in this report<br />
was found in the website.<br />
3 This institution often calls for its members to observe social and environmental corporate responsibility in<br />
undertaking of their economic activities.<br />
4
3. <strong>BIO</strong>ENERGY PRODUCTI<strong>ON</strong> IN <strong>MOZAMBIQUE</strong>: THE C<strong>ON</strong>TEXT AND POLICY CHALLENGES<br />
3.1 SOCIO-EC<strong>ON</strong>OMIC C<strong>ON</strong>TEXT<br />
Mozambique has a total land cover of 784,089 Km 2 and 17,500 Km 2 of inland water, although<br />
about 40% of the land is somewhat arable, only 10-15% is currently under cultivation and<br />
productive forest covers 51% of the country while 19% has woodlands with miombo and mopane,<br />
thickets and forests under shifting cultivation.<br />
The country’s population is 20.5 million of which 63% still lives in rural. The poverty incidence<br />
is 54% and there is a growing tendency towards a more skewed wealth distribution. This<br />
increased from 0.40 in 1997 to the current 0.42 and the GDP per capita is still among the lowest<br />
(less than USD 500). 78% of labour in the country works in the agricultural sector, which<br />
contributed 22.6% to the GDP in 2006. The HIV/AIDS menace affects about 16% of the<br />
population.<br />
Most of the population in Mozambique consumes biomass energy considered to be an important<br />
factor in deforestation which is about 0.3% per annum. The draft report of the DINATEF for<br />
2007 indicates that last year the licensed exploitation of biomass energy, particularly charcoal and<br />
firewood was around 781,566 bags (generally of 50 Kgs) and nearly 38,000 m 3 . Both total over<br />
660 4 thousand m 3 of wood. This accounted wood biomass is just a partial reflection of the urban<br />
demand for fuelwood as most of the registered producers supply the urban markets and over 12<br />
million m 3 more are consumed in the rural areas. The price of charcoal has been increasing over<br />
the years and a bag costs about 14 USD almost while the price of gas is about USD 20 for a 12-15<br />
Kg cylinder. The production of gas and electricity only meets the demand of a minority of<br />
households and major urban centres. Only just over 80 kWh per capita of electricity is available<br />
hence the widespread use of generators of electricity from diesel in most rural towns. The<br />
production capacity of gas is 3 million m 3 , with production almost reaching the full capacity.<br />
According to the evaluation of the biggest 100 companies in Mozambique in 2006, the energy<br />
sector is growing, with 18% increase in gas production of which almost 99% is exported, 11%<br />
increase electricity and 2% for renewable energies.<br />
Mozambique relies on imported fossil fuels to run its economy. For example, the imports of<br />
diesel and petrol reached respectively nearly 124 and 520 thousand m 3 (KPMG, 2003). The major<br />
market players in terms of distribution are led by PETROMOC with 35%, BP Mozambique<br />
(30%), Total (14%) with the rest shared by Petrogal, Mobil, Shell, PESS, CALTEX and Engen.<br />
The overall consumption of fossil fuels in the country is about 590,000 tons of oil products per<br />
year mostly diesel. From the point of view of (size) market this is considered to be very small.<br />
Hence the country’s engagement in biofuels is seen as bringing an opportunity for independence<br />
of the country in terms of capacity to generate energy for internal consumption. In fact,<br />
PETROMOC (2008) states that the local market have the capacity to consume 100 thousand m 3<br />
even at higher blending levels of 15-20%. Additionally, the consumption of fossil fuels comes at<br />
an increasingly high price up from less than 40 USD less than five years ago to over USD 130 in<br />
2008. These prices affect the performance of the economy as it is one of the major expenses in<br />
the production and service sector. Therefore, it is critical for Mozambique to search for<br />
alternative and cheaper sources of energy. However, the excessive production capacity being<br />
sought in the country aims at meeting the needs of the foreign markets. While this may be<br />
4 Cconversion of bags to volume of wood done by the author<br />
5
positive in terms of generation of foreign exchange and improve the balance of payments, what is<br />
the opportunity cost?<br />
3.2 THE POLICY AND LEGAL FRAMEWORK: C<strong>ON</strong>TEXT AND GAP BETWEEN INTENTI<strong>ON</strong>S<br />
AND PRACTICE<br />
3..2.1 Energy Policy<br />
The current policy framework includes the 1998 Energy Policy and the 2000 National Strategy<br />
for Energy. The objectives are as follows: ensure supply of energy at low cost; promote<br />
reforestation to increase the availability of biomass energy; promote investment in the<br />
development of various sources of energy such as forests, water, and natural gas; promote<br />
technologies for exploitation of alternative sources of energy such as solar and wind energy. The<br />
strategy for implementation of such policy objectives include interventions to improve<br />
availability of electricity 5 and increase distribution to the rural areas, exploitation of mineral coal<br />
and prospecting oil; promote sources of renewable energy products. Although not explicit the<br />
production of biofuels is a way contemplated in the last objective. However, recently there has<br />
been a significant interest of the government and pressure from multinationals to invest in<br />
biofuels. As a result the government had to start a more focused process of reflection and<br />
development of policy and legislation. The Decree No 63/2006 was the first regulatory instrument<br />
to provide some guidance on the import, distribution and commercialization of petrol products as<br />
well as explicit provisions to accommodate the possibility of production of bioenergy in the<br />
country.<br />
Concomitant to that, the Government of Mozambique has commissioned studies to look at the<br />
potential, viability as well as possible impact and sustainability of biofuels production in the<br />
country. These studies are to inform the content of the policy and strategy. According to<br />
PETROMOC (2008) the aim of the Biofuels strategy includes:<br />
o “reduction of import of liquid fuels; widening the access to energy sources;<br />
o job creation opportunities;<br />
o diversification of community livelihood strategies hence being a vehicle for poverty<br />
reduction;<br />
o radically changing the agriculture paradigm, including food production, by creating or<br />
sharing basic infrastructures, establishing important synergies and enabling otherwise<br />
scarce flows of investment into the agribusiness;<br />
o creation of a set of valuable by-products like the co-generation of electricity, production<br />
of organic fertilizers and supply of human and animal feed proteins;<br />
o valuing the enormous and dormant agro-climatic potential of the country;<br />
o making good use of the geostrategic location of the country and respective irrigation,<br />
harbour and petroleum infrastructures;<br />
o making a significant contribution to the global effort for the mitigation of the<br />
environmental damages;<br />
o being part of the vast and ever-growing international biofuels market through its export;<br />
o and increasing the overall production capacity of the country.<br />
The biofuels assessment suggests some elements for the strategy and National Biofuels<br />
Programme (NBP) in Mozambique (Box 1).<br />
5 Law on Electricity approved in 1997 (No 21/1997)<br />
6
Box 1: Issues /areas that should be considered in the National Biofuels Programme<br />
Elements to be considered<br />
o Focus on establishment of a domestic market in the short term and create demand for biodiesel and bioethanol<br />
for transportation and industrial purposes. The strategy would be to progressively blend the bio and fossil<br />
fuels at relatively short intervals to stimulate the emergence of the necessary production capacity.<br />
o Investigate regional market opportunities, coordinate biofuels provisions, imports specifications of the<br />
different SADC countries as well as seek to establish partnerships with large international biofuel exporters.<br />
o Promote a diversity of feedstocks (such as rehabilitation of the coconut plantations, expansion of soy,<br />
sunflower, castor seed cultivation, jatropha, research on the African palm incentives for utilization of molasses<br />
and bagasses to produce ethanol, promote sweet sorghum and introduce small scale cassava processing) to<br />
limit, for example, the impact of price fluctuations while promoting the agricultural potential of the different<br />
agroecological zones in the country.<br />
o Introduce key policy incentives that include biofuel content for gasoline and diesel respectively starting in<br />
2009 and 2012; premium over CIF (cost, insurance and freight) of imported fuels to be paid by blenders<br />
allowing sufficient returns for producers and farmers; exemption of tax on fuels for pure biofuels; mechanism<br />
for compensation to limit biofuels price variations; authorization of feedstocks for biofuels; introduce feed-in<br />
tariffs for electricity cogeneration facilities at biofule plants.<br />
Measure for socio-economic and environmental sustainability:<br />
o Guidelines for large-scale monoculture to reserve land for small-scale producers.<br />
o Small scale production of less than 3 million liters/year should be exempt from regulatory oversight.<br />
o Ensure technical and financial support to rural communities involved in biofuel production.<br />
o Utilization of multi-feedstock in particular non edible crops to safeguard food security.<br />
o Provide the necessary capacity for the Ministry of Environmental Affairs (MICOA) to conduct an<br />
objective analysis of the impact of biofuels on the environment.<br />
o Use land that has never been under cultivation or has laid fallow for long periods (since independence).<br />
o The government should monitor the development of standards for certification of biofuels.<br />
The suggested areas of focus for the strategy seem to be plausible in particular the need for<br />
diversification of feedstock which is essential in as far as mitigating environmental catastrophes<br />
(plagues, diseases, soil degradation) that can be associated with monoculture. Promotion of<br />
outgrower schemes or other forms of engagement of the local communities in the production<br />
chain is also a critical aspect for the strategy.<br />
One of the growing criticisms and scepticism of the biofuels is associated with the fear of<br />
substitution of crop production to meet food security with supply of raw materials for this<br />
emerging industry. An article on whether Africa should produce food to eat or run the cars is<br />
illustrative of that concern. Different opinions being voiced during this study in regards to this,<br />
most of which recognize the pertinence of the debate (food or fuel) but criticize the fact the<br />
discussion on the two issues is parallel, led by different institutions, using different fora instead of<br />
having a coherent, integrated and concomitant analysis. Another opinion is that any negative<br />
impact of biofuels in food production is likely to be temporary. Yet, other opinions deem such<br />
debate as ‘dishonest’ on the basis that biofuel production will only use a fraction of land available<br />
for agriculture, therefore without a justifiable need for concern. However, the concern with<br />
biofuels clearly goes beyond the issue of area occupation and it extends to selection of crops,<br />
farming systems, participation of local communities, respect for their rights to land and other<br />
resources. For example, maize is staple food in the country, the majority of the population also<br />
consume fresh or processed cassava, and the coconut has been used for direct consumption or for<br />
production of oil. Henceforth, the change of the ‘traditional’ use of any of these crops certainly<br />
should be accompanied by an analysis of the tradeoffs to facilitate an informed decision making<br />
7
process. Therefore, the recommendations for the strategy (Box 1) establish provisions and<br />
incentives to avoid use of edible crops for biofuel production could not be more appropriate.<br />
However, there are also challenges in the materialization and viability of some of the suggestions.<br />
For example, the establishment of land that has not been used for as many years as preindependence<br />
does not necessarily mean that there has already been a satisfactory supply of land<br />
for food production. Most farmers in Mozambique cultivate small plots due to the lack of<br />
capacity in terms of finances to purchase inputs; there is limited agriculture extension and hence<br />
scanty access to improved technologies as well as the poor infrastructure for storage and<br />
transportation of surplus to markets. This means that improvement of the production of small<br />
holders can play an important role in increasing the land productivity but also it may stimulate<br />
demand for expansion of the agricultural land. Furthermore, the current second phase of the<br />
agricultural sector investment program (PROAGRI II) also establish the need to provide<br />
incentives and support for development of a robust commercial farming sector and development<br />
of agro-processing industries in the country. This needs a more thorough reflection and<br />
prioritisation of zoning (large scale) and conducting a thorough consultative process of<br />
stakeholders in particular the communities in the process of land allocation is paramount to<br />
minimizing the conflict in land use. Therefore, the development of the Biofuel Strategy should<br />
take this into account.<br />
3.2.2 Land, Forestry and Reforestation<br />
General land use in the country<br />
As previously mentioned Mozambique has 784,089 Km 2 and 17,500 Km 2 of inland water. About<br />
15% of the land is protected to conserve ecosystems and biodiversity. According to the recent<br />
national forest inventory by Marzoli (2007) 70% of the country or about 58.8 million ha is<br />
covered with forests and woodlands. However, forests cover only 40.1 million ha of which almost<br />
27 million ha are of productive forests and 13 million are under conservation (forest reserves).<br />
Other sources of information indicate that the country has 36 million ha of arable land which is<br />
suitable both for agricultural crops as well as forest plantations. However, currently only 12<br />
million ha are under agricultural cultivation meeting only about 80% of food needs while the<br />
forest plantations only cover about 24 thousand ha. There also indications that the country<br />
currently uses around 4.3 million hectares out of a total of 63.5 million hectares of potential<br />
arable land, or 6.6 per cent (FAO). Additional 41 million hectares of poor quality land are<br />
available for the production of energy crops that require few inputs and are not suitable for food<br />
production. Koetse and Alves (2005/6) indicate that there are about 7 million ha with potential for<br />
reforestation distributed as follows: Niassa (2.4 million ha), Zambezia (2.1 million ha), Nampula<br />
(1.5 million ha), Manica (860 thousand ha) and Sofala (120 thousand). These statistics give a hint<br />
on the actual and potential competition for land resources including agriculture, timber harvesting,<br />
livestock, tourism, expansion of urban areas, and supply of land for meeting paper and energy<br />
needs as well as alternative sources of wood products to reduce pressure on natural forests,<br />
among others. It is important to note that the Reforestation Strategy aims are silent in relation to<br />
production of biofuels from crops such as jatropha.<br />
Despite the fact that foreign analysis are quick to observe vast masses of ‘available’ land as<br />
quoted in the previous paragraphs the government is taking caution. The allocation of land for<br />
biofuels has been suspended for months now pending the realization and approval of the national<br />
zoning exercise at scale of 1:1000000 by the Council of Ministers. Four classes of aptitude were<br />
considered (high, moderate, marginal and non-apt) for an initial pool of biofuel crops including<br />
sugarcane, sorghum, jatropha and cassava. This was presented for discussion by different<br />
8
government bodies last May (2008). The scale used in this zoning exercise is object of<br />
controversy (among technical experts) particularly as far as the reliability of its use as a spatial<br />
guide on land suitability and availability. Notwithstanding that there is overall concordance that<br />
this is a necessary first step to support decision making and detailed studies including<br />
consultation with communities will be pursued by investors in order to establish a de facto<br />
availability of land. This is a very critical issue considered that already the land demand is<br />
reaching almost 3 million has and also there has to be caution as far as water demand is<br />
concerned.<br />
A brief account of the main legal instruments that needs to be taken into account in the decision<br />
making on land allocation for biofuels.<br />
Land, forestry and wildlife policies: provisions and some examples of conflicting allocation and<br />
use of land and challenges of community participation<br />
a) Good provisions<br />
The 2004 Constitution, the Land Policy and Law and all other sectoral policies such as Forestry<br />
and Wildlife Policies reaffirm that land and other resources belong to the State. The State has the<br />
prerogative to allocate leasehold rights to private investors for exploitation of resources for a<br />
period of maximum of 50 years renewable. The communities enjoy quasi perpetual rights to land<br />
as the right of occupancy (after 10 years) provides security of tenure and communities can<br />
ascertain collective rights through the process of delimitation, demarcation and subsequent<br />
issuance of a certificate of land use and improvement rights (DUAT). The law also recognizes the<br />
relevance of customary law in as far as it does not contravene equitable access to resources as a<br />
basic human right equally applicable to men and women and the often marginalized groups. All<br />
these provisions are safeguards for the rights of the local communities. Currently, there are about<br />
300 communities with formal land rights in the country and the 2006 government statistics<br />
indicated that more than 4 million ha from 97 communities (DINATEF, 2006) had been entered<br />
in the national cadastre. The draft DINATEF 2007 report indicate that during the year there were<br />
community delimitations in about 1.6 million ha which can lead us to estimate roughly that thus<br />
far there may be nearly 10 million ha under community control.<br />
The forestry and wildlife policy draw significantly on the provisions of the land in recognizing<br />
collective rights and it provides an opportunity for communities to engage in participatory natural<br />
resources management, generate income and manage the resources in a sustainable manner. This<br />
is in fact a strategy adopted as the social objective of this policy. As a result there are currently 70<br />
CBNRM initiatives that have been documented most of which have been accorded the DUAT as<br />
well as having licenses for harvesting resources for income generation. Further, the same policy<br />
provides for benefit sharing between the government and the communities. The latter have 20%<br />
of the revenues from royalties. The 2007 draft report of the National Directorate of Lands and<br />
Forestry indicates that there are more than 1000 communities that reside in areas that the<br />
exploitation of forestry and wildlife is taking place hence being potential beneficiaries. However,<br />
the pre-requisites limit access to the funds. Only 306 communities received over USD 804<br />
thousand which corresponds to and average of little more than USD 2.6 thousand per community.<br />
There has been some debate on why this provision for sharing benefits between the state and<br />
communities does not extend to other sectors such as the mining, water for generation of<br />
electricity, fisheries etc. This issue seems also relevant to ponder about in the context of biofules<br />
production and community consultations. Other than threatening the land rights of the<br />
communities, investments were expected to take development opportunities to the communities<br />
through negotiation of private-community partnerships and fulfillment of the investor’s Corporate<br />
Social Responsibility. If poverty reduction and promotion of rural development are not just<br />
political statements, then the National Strategy for Biofuels should provide guidelines on<br />
9
partnerships including clarity on community benefits particularly employment opportunities. In<br />
regards to these, the type of jobs, skills required, capacity building etc should constitute important<br />
pillars contemplated in the decision making process for approval of investments. These are to<br />
create wealth for the country and not only extract and export the wealth while affecting the social<br />
organization of the communities and source of livelihoods.<br />
b) Implementation challenges<br />
The policies of land, forestry and wildlife are key in the decision making regarding the allocation<br />
of land for biofuels crops. Either productive land for food crops, land with forestry resources<br />
formally adjudicated to the local communities or perceived as inherently communal due to the<br />
statutory recognition of customary law in establishing the boundaries of community land,<br />
demands a transparent process of consultation for allocation of land to third parties. Further, the<br />
country has known an increase in gazetment of conservation areas within and beyond national<br />
boundaries. Apparently despite the good provision for protection of community rights, the<br />
process of community consultation preceding land allocation for investments is failing.<br />
Therefore, in terms of land there has to be a guide on where and how to allocate land for biofuels.<br />
Otherwise there is clearly going to be conflicts of use and between land users.<br />
One example of policy, process and perhaps political failure in relation to allocation of land for<br />
feedstock for biofuels happened in Gaza province (North of Maputo) where communities affected<br />
by the establishment of the Limpopo National Park were settled in an area that offered<br />
opportunities for developing community tourism activities as well as for grazing. This is the case<br />
of the communities that have been affected by the establishment of the Limpopo National Park<br />
under the Great Limpopo Transfrontier Park. It is almost a decade now since the signature of the<br />
agreement between the governments of Mozambique, South Africa and Zimbabwe to establish<br />
that new conservation approach (ecosystems beyond national boundaries). As a result of this<br />
process the communities affected have been leading unstable lives with successive consultations<br />
(post-decision!!) regarding the issues of resettlement, identification of suitable areas for the<br />
communities to carry on their traditional activities as well as accommodating the interests and<br />
socio-economic setting of the hosting communities. According to the TFCA authorities the<br />
negotiation of the resettlement has taken over 4 years. The map (Figure 1) is illustrative of wider<br />
conflicting allocation of land to communities and investors which are likely to multiply<br />
throughout the country in absence of a national land use planning policy, land use plan and<br />
zoning.<br />
ZIMBABWE<br />
Gonarezhou<br />
Zinave<br />
Banhine<br />
Limpopo<br />
MOCAMBIQUE<br />
Kruger<br />
SWAZILAND<br />
Legend<br />
Cubo CNC<br />
National Parks<br />
±<br />
Limpopo Heartland<br />
Massingir Dam<br />
SOUTH AFRICA<br />
0 15 30 60 90 120<br />
Kilometers<br />
Fig. 1 Area earmarked for a community nature conservancy to promote tourism activities (source:<br />
C<strong>ON</strong>TOUR, 2006)<br />
10
The Box 2 highlights of ‘giving’ formal rights and the subsequent ‘process of undermining<br />
community rights’. The concept of community land delimitation, the devolution of natural<br />
resources management to community control is being challenged in practice as the interests of the<br />
investors overlap and in fact override acquired and formalized rights of the community.<br />
Box 2 The process of successive rights ‘transfer’ from communities to investors<br />
Community rights and development plan<br />
The Limpopo Heartland is one of the areas of intervention of AWF which includes promoting sustainable<br />
management of interstitial areas between the protected areas in this case the Limpopo National Park, Banhine<br />
National Park, Zinave National Park, Gonaredzou National Park in Zimbabwe and Krueger National Park in<br />
South Africa. The communities of this case study are being allocated from the Limpopo National Park as<br />
indicated in the map. In some cases the communities had to be resettled to avoid human-wildlife conflicts but<br />
also to minimize land use conflicts such as farming and animal husbandry and wildlife-based tourism activities<br />
and conservation of biodiversity. Three communities (Cubo) were supported by the AFW to acquire the Land<br />
Use Certificate (DUAT) and the communities had already a strategic natural resources management plan<br />
(C<strong>ON</strong>TOUR, 2006a) and a business plan (COUNTOUR, 2006b) detailing respectively the measures to be<br />
undertaken to harmonize the requirements of different wildlife species, control of soil erosion, water<br />
management etc and a plan of the type of economic initiatives to be implemented for the benefit of the<br />
community. The total area for which the land delimitation certificate was issued is over 100 thousand ha. After a<br />
zoning process 41 thousand ha were identified as suitable for community based tourism activities.<br />
Community rights transferred to game farming companies<br />
Paradoxically, after issuing DUAT for communities, three concessions for game farming were authorized and<br />
part of the land under community control transferred. In order to accommodate this change in rights,<br />
negotiations were underway to form joint-ventures between the community and private concessionaires. The<br />
business plan includes various scenarios of engagement of three investors with whom the Cubo community was<br />
in a process of negotiating joint ventures.<br />
Community rights transferred for a biofuels producing company<br />
A fourth investor (PROCANA) was allocated 30 thousand ha of land for production of sugar cane for bioethanol<br />
of which 20 thousand identified in the zoning process as pasture land were given to this company. As far as the<br />
community pasture land, some interviewees indicated that PROCANA has agreed to provide a limited area for<br />
intensive production of pasture and increased carrying capacity to cater for the community needs.<br />
What is left for community management?<br />
The community land was subsequently reduced to 10 thousand ha allegedly due its limited capacity to manage<br />
an extensive area (100 thousand ha).<br />
It is important to stress that both economic development through large scale investment and<br />
poverty reduction thought security of land resources for the local community are not mutually<br />
exclusive, but rather complementary. In fact, the process of securing resources rights by<br />
communities provides an opportunity for them to have a share 6 in a business and have tangible<br />
benefits by the virtue of having resources. The issue however is how consistent and informed is<br />
the government decision making process regarding land allocation and how objective is the<br />
resettlement processes in order to minimize the socio-economic disruptions of the affected people.<br />
The conflict between production of biofuels and land allocation for other land uses will also<br />
extend to forest areas, tourism areas, conservation area, smallholder farming or grazing areas<br />
6 The signed (by community representatives and other authorities) minutes of the community consultation often<br />
highlight some of the concerns that the communities expect to address when endorsing investments.<br />
11
among others. The Figure 2 illustrates again a potential conflict between production of biofuels in<br />
Cabo Delgado and the Quirimbas National Park which is managed by WWF. The distributing of<br />
production areas (yellow in the map) is commendable in terms of minimizing conflicts with<br />
communities and possibly with other uses such forest concessions. However, the location of one<br />
of the areas adjacent to the support/buffer zone of the QNP is likely to cause some conflicts<br />
particularly depending on the specific crops that will be grown in the area, their demand for water<br />
among other uses. Details about the Eco-energia company will be discussed in section 4.<br />
Fig. 2 Areas earmarked for the production of biofuels by one of the companies requesting<br />
150-250000 ha in Cabo Delgado Province<br />
The conflicts in implementation of the forestry and wildlife policy did not start with biofuels.<br />
There are numerous examples countrywide. The 2007 annual draft report (DINATEF, 2008)<br />
indicates that there have been 76 land conflicts resulting with 76% occurring in the provinces of<br />
Tete, Cabo Delgado and Zambezia. The report points out several causes of conflicts among which<br />
the high demand for land for tourism investments in the coast, poor dissemination of the<br />
legislation to local communities, deficient community consultation processes, dispute over<br />
boundaries between communities and investors and non rigorous delimitation of areas (giving<br />
more land than authorized).<br />
However, there are other examples of conflict in decision made by the government and change of<br />
right given to local communities for the benefit of private entities. This clearly contravenes the<br />
policy and the legal framework. Chipanje Chetu Programme in Niassa province is a case in point.<br />
It is a CBNRM initiative facilitated by IUCN with support from Ford Foundation, the<br />
Netherlands government among other donors and fully backed by the provincial government for<br />
6-7 years. In the process the community had acquired land use rights (DUAT), conducted an<br />
inventory of resources (timber and non timber), invested in controlling poaching and widespread<br />
12
ushfires through training and equipment (e.g. bicycles, uniforms, radios, etc.) of community<br />
scouts, initiated income generating activities and had a partnership with a safari company which<br />
was already paying annual dividends distributed between the communities, local and provincial<br />
government as well as meeting part of the technical support hence moving towards self<br />
sufficiency and sustainability. However, since 2004/2005 there was a change, overlap or transfer<br />
of land rights to the benefit of the Lipilichi Wildness. Again the issue how the policy and law are<br />
applied other than disputing the need to bring investors in they genuinely aim to promote<br />
development. This case also illustrates that it is becoming almost a “tradition” for the government<br />
to overrule its decisions and undermine the rights of the local community. It may be right to give<br />
a benefit of doubt and consider that the transfers are done in ‘good faith’ which is to promote<br />
rapid economic growth and creation of rural employment. This is certainly an undisputable and<br />
shared common goal. However, the policy provisions seem to create “an illusion of inclusion” for<br />
the communities who in the last instance they easily loose the rights. Monitoring the tradeoffs and<br />
the impact of these decisions is what constitutes a key missing link.<br />
The Reforestation strategy: aim, land availability targets<br />
The Reforestation Strategy yet to be approved acknowledges the area with potential for<br />
plantations but also the existing fragile ecosystems, water basins and dunes for conservation. It<br />
states its main aim as to establish an integrated industry to contribute to satisfying the increasing<br />
demand for paper in Mozambique and the world over, satisfy demand for timber as well as<br />
energy. This includes not only wood for domestic consumption in the rural and urban areas but<br />
also for curing tobacco, tea and for the ceramic and bakery industries. The strategy targets to<br />
promote plantations of large and small scale (by communities or outgrower schemes) to the<br />
magnitude of 2 million ha by 2025. It the process about 100 thousand jobs would be generated<br />
and raise almost USD 2 billion for the national economy. Reduction of deforestation of the<br />
natural forests of 20% by 2010 and substitution of 20% the consumption of firewood for the same<br />
period and contribute to poverty alleviation are considered to be the main targets of the<br />
plantations for energy. One important recommendation of this strategy is that a national zoning<br />
has to be undertaken to clearly identify land suitability. Land use planning and zoning has been<br />
discussed in many occasions and over many years and was strongly recommended particularly in<br />
the PROAGRI II (Natural Resources Management component) as an essential step to inform<br />
decision making about land allocation and optimal use. The significance of this recommends is<br />
further enhanced as it is an important tool for the harmonization of the land use planning and<br />
identification of suitable for biofuels productions and other economic activities. There is clearly a<br />
complementary role between the reforestation strategy and the biofuel strategy under<br />
development, but whether the involved in the process take this aspect into consideration is not<br />
clear. A piecemeal land use planning directed to specific activities such as reforestation, zoning of<br />
the costal area for tourism purposes, zoning for biofuels is clearly a ‘waste’ of opportunity to<br />
undertake a comprehensive land use planning which will cost more but the long term benefits will<br />
definitely payoff.<br />
3. 3.3 Water, agriculture and the environment<br />
Water<br />
Similarly to land, forestry and wildlife, the water resources belong to the State, which reserves the<br />
rights to license the use and the margins of the rivers are subject to partial protection as stipulated<br />
in the land legislation.<br />
Water and sanitation is still one of the main challenges that the government has to address and<br />
many rural communities have limited access to clean drinking water. While there are different<br />
water requirements for different crops used as raw materials for production of biofuels, water<br />
13
availability is a critical aspect in the identification of areas suitable for establishing the plantations<br />
and the processing plants.<br />
The Water Law (No 16/91) states that: (i) the available water should be used rationally to meet<br />
the demand by the local population and for economic development; (ii) the use of water for<br />
agricultural, industrial and for generation of hydro-electricity has to be regulated; (iii) the water<br />
supply for domestic consumption and sanitation is of utmost importance and priority in relation to<br />
any other uses; (iv) the use of water for private purposes in detriment of meeting demands of the<br />
local population should not be authorized; (v) water for irrigation should be used intensively<br />
maximizing its value and reduce losses; (vi) the industrial water users should ensure maintenance<br />
of quality, minimize pollution and in case that this happens they should observe the polluter’s pay<br />
principle.<br />
The observation of the rights of the different users of water is of paramount importance in the<br />
process of decision making on land allocation. The location of PROCANA, for instance, near the<br />
Massingir Dam in Gaza and close to the tributary of the Limpopo River is strategic. The aim is to<br />
satisfy the water demand for sugar cane and other feedstock. This phenomenon is common. The<br />
existing and planned sugar producing companies are in areas with easy and abundant access to<br />
water. Examples include two sugar companies in the Incomati River in Maputo, the Buzi River<br />
and Zambezi in Sofala as well as many rivers distributed along the areas that Eco-energia is<br />
aiming to use in Cabo Delgado. The interview with the managers of Eco-energia indicated that<br />
the selection of Cabo Delgado (Figure 2) is related to the availability of water and land besides<br />
the good climate conditions all of which are conducive for sustainable production of biofuels<br />
without affecting the biodiversity. The investor maintains that will use degraded lands, will use<br />
crops with limited water requirements (Sweet Sorghum) and use of water efficient irrigation<br />
techniques. However, the company also plans to construct water retention infrastructures such as<br />
dams to be used also for generation of electricity. As it will be shown later, the Ministry of<br />
Housing and Public Works that host the water directorate is conspicuously absent from the interministerial<br />
committee on biofuels.<br />
Agriculture policy<br />
Mozambique is an agricultural based economy and this supplies nearly 100% of rural<br />
employment. The government of Mozambique places high priority to this sector as a vehicle to<br />
addressing the challenges of food insecurity, malnourishment and poverty. The Agricultural<br />
Policy has the following four main areas of intervention: (1) food security, (2) sustainable<br />
economic development, (3) reduction of the unemployment rate, (4) and poverty reduction.<br />
Mozambique has developed the second generation of the Agricultural Sector Investment<br />
Programme known as PROAGRI containing strategies and specific intervention areas in the<br />
sector to deliver on the policy objectives. Within that context, PROAGRI is part of a broader<br />
perspective to improving agriculture as well as endow the majority of the households, particularly<br />
rural households with the necessary means to pursue the goals of reducing poverty and food<br />
insecurity (MADER, 2004). Therefore, the objective of PROAGRI II is to contribute to the these<br />
two goals through the support of the smallholder and the commercial farmers to increase the<br />
agricultural productivity, stimulate the agri-processing industry and commercialization of the<br />
produce. The program also emphasizes the need to ensure sustainable use and management of the<br />
natural resources. While the smallholder farming sector is considered to be rich in diversity of<br />
land sizes, crops and final use of the produce, the commercial farming sector was defined as “The<br />
Front Runners for Agricultural Development”. For both categories the major areas of support<br />
include markets, provision of financial services, technology, markets and access to natural<br />
resources.<br />
14
A major component of the biofuel production comprise of agricultural activities for production of<br />
feedstock, hence the potential to contribute or undermine the efforts to expand the commercial<br />
farming sector as well as ensure that high potential land for food crops is actually allocated to that<br />
purpose.<br />
Environmental policy<br />
The government of Mozambique has defined important tools to ensure that economic activities<br />
adhere to in order to guarantee the environmental sustainability of their businesses. The Decree<br />
No 45/2004 substituted the Decree 76/1998 regulates the process of Environmental Impact<br />
Assessment; the Decree 130/2006 regulates public participation in the evaluation of the studies<br />
and monitoring the implementation; the Decree 129/2006 provide general guidelines for the EIA<br />
studies; and, the Decree 32/2003 focus on Environmental Auditing. Therefore, the environmental<br />
legal framework offers a comprehensive set of process and opportunities for adherence to<br />
acceptable environmental standards and for monitoring the implementation of the plans of<br />
environmental management. However, the limited resources disposable to the government<br />
constitute an obstacle for efficient implementation of environmental safeguards.<br />
The Decree 39/2003 for industrial licensing classifies the industries in four categories defined<br />
according to the level of investment. The micro-industries are defined as those with less than<br />
USD 25 thousand investment and less than 25 employees while large scale industries have more<br />
than USD 10 million investment and more than 250 employees. The Regulation of the EIA also<br />
defines categories of investment requiring different levels of detail of analysis of their impacts for<br />
environmental licensing and monitoring. The categories A and B are expected to result in<br />
significant impact on fragile ecosystems such as protected areas, natural forests, wetlands,<br />
investments that may require resettlement of populations, areas with high demand for land and<br />
conflict over use and users, areas along rivers and other inland water courses that sustain people’s<br />
livelihoods. Therefore, they require detailed EIA studies and monitoring process and the<br />
difference between A and B is simply in the scale of the impact. Agriculture activities under<br />
category A include investments in cropland of more than 350 ha for irrigation and over 1000 ha<br />
for rainfed agriculture; conversion of agricultural land, introduction of new or exotic species.<br />
Energy related initiatives falling in the same category (A) do not include an explicit reference to<br />
biofuels, however the storage of any liquid fuels is deemed to warrant a comprehensive EIA.<br />
Therefore, given the scale of production of biofuels by large companies in terms of area,<br />
requirement of water, possible harvesting of natural vegetation and use of agrochemicals, etc. an<br />
environmental management plan should be developed and strictly monitored.<br />
The investments under Category C are considered to cause negligible or non-existent negative<br />
environmental impacts. This may include irrigated agriculture of less than 100 ha or clear-cutting<br />
of natural vegetation in less than 200 ha. Again here in most cases what is crucial to look at<br />
cumulative impacts of many, small continuous activities. This is likely to be the case of the<br />
outgrower schemes either for producing sugar, biofuels feedstock or any other activity.<br />
The major concerns of the environmental authorities include the quantity of water likely to be<br />
used in the production of biofuels and possible competition with water requirements for food crop<br />
production and consumption of humans and domestic animals. The discharge of effluents may<br />
damage the quality of soil and water resources hence affecting the aquatic life; the apparent<br />
limited access to information on associated socio-economic and environmental costs and benefits<br />
influence negatively the process of consultation of the local communities. In order to have clear<br />
guidelines on environmental management, a comprehensive zoning and strategic environmental<br />
15
assessment would be a useful complementary instrument to current efforts to zone areas that can<br />
potentially be used for biofuels.<br />
During the visit to the Ministry of Environmental Affairs it was possible to search for EIA study<br />
reports that might have been submitted during the last years either for expansion of areas of<br />
cultivation of sugar cane by the companies currently operating in the country or related to new<br />
investments in the area of biofuels. It was not possible to find the EIA of PROCANA investment<br />
as the first ever large scale producing company formally approved to operate as such. This would<br />
have shaded some light on how detailed the studies are and what are the environmental concerns<br />
being raised as well as the mitigation measures envisaged. However, two studies on<br />
environmental pre-viability analysis for expansion of two sugar companies in the Maputo<br />
province (Açucareira de Maragra and Açucareira de Xinavane) were identified. Further, two EIA<br />
studies for Açucareira de Moçambique one concerning the expansion of the area of production of<br />
sugar cane and the processing plant in Sofala province. The common issues rose in the case of<br />
Maputo (Impacto, 2006, 2007) that need attention and detailed study in the EIA include:<br />
Water pollution including risk of contamination of ground water due to use of<br />
agrochemicals (fertilizers, pesticides, herbicides etc.) in the process of sugar cane<br />
production.<br />
Conflict between the various users of water along the Incomati basin where many small<br />
and medium scale agricultural activities are taking place as well as the two sugar<br />
companies.<br />
Land use change and degradation of habitats.<br />
<br />
<br />
Air pollution.<br />
Contamination of soils due to poor management of solid waste, oil, lubricants and fuel<br />
used during the process of production.<br />
The environmental impacts identified in the above case are also similar to those identified in<br />
the case of establishment of new areas of plantation of sugar cane in the Açucareira de<br />
Moçambique (CEPLAGA, 2006). The additional impacts observed in this case (detailed EIA)<br />
include soil erosion, obstruction of drainage canals due to sedimentation, change of water<br />
table level, proliferation of diseases and plaques and water borne diseases due to water<br />
contamination. In the case of the sugar production plant the environmental impacts include<br />
also water, soil, air and noise pollution (CEPLAGA, 2007). Overall the studies indicate<br />
positive socio-economic impacts particularly the generation of employment and provision of<br />
some utilities such as water and electricity to the employees. However, in the case of the<br />
Maputo sugar companies, particularly Maragra a socio-cultural impact highlighted the<br />
possible proliferation of HIV/AIDS as a result of improved economic conditions which lead<br />
men to become polygamous. This aspect deserves an important consideration in all new<br />
investments in biofuels where migration may be stimulated particularly due to large scale of<br />
some investments that cannot be sustained by local labour (unskilled) but also due to the<br />
necessary migration of skilled workers.<br />
The examples of studies here presented give an idea of whether the legal provisions are being<br />
observed or not. As usual the major policy challenge lies on monitoring implementation as<br />
there is tendency for investors to comply with requirements for producing management plan<br />
solely to ascertain the issuing of licenses to operate.<br />
The international pressure for meeting acceptable standards in the process of production and<br />
marketing of biofuels is likely to play a key role in implementation of environmental<br />
safeguards. The European Union developed an Energy Policy which will determine the<br />
penetration of biofuels in that market. Mozambique has been analyzing the EU environmental<br />
indicators and a seminar was organized to discuss the ‘domestication’ and harmonization of<br />
16
the sustainability criteria with local legislation. The EU standards include the following<br />
principles for biofuels production: (i) positive greenhouse gas balance of the production chain<br />
and application of biomass; (ii) minimum impact of biomass production on important carbon<br />
sinks in both vegetation and soil; (iii) production of biomass should not compromise food<br />
security and other needs such as energy supply, medicines and construction materials; (iv)<br />
minimum impact on protected biodiversity and rather strengthen it where possible; (v)<br />
maintain or improve the quality of soil in the production and processing of biomass; (vi)<br />
minimize the depletion of surface and ground water and maintain/improve water quality; (vii)<br />
improve or maintain the air quality in the process of production and processing of biomass;<br />
(viii) production of biomass must contribute to improvement of local livelihoods; (ix) ensure<br />
contribution towards the social wellbeing of the employees and local population. These<br />
principles are of interest of both the government and also the private investors in order to<br />
ensure that the use of resources in the country will result in positive contribution to poverty<br />
reduction, economic growth and environmental sustainability.<br />
3.4 THE INSTITUTI<strong>ON</strong>AL ARRANGEMENT FOR PRODUCTI<strong>ON</strong> OF <strong>BIO</strong><strong>FUEL</strong>S (RESEARCH,<br />
PRODUCERS OF LARGE AND SMALL SCALE, SUPPORT SERVICES, INCENTIVES)<br />
The institutional arrangement is of paramount importance given the complexities of the<br />
production of biofuels. As discussed in the previous sections many resources are likely to be<br />
impacted on, positively or otherwise. Land, food security, water, environmental impacts of the<br />
processes of production of raw materials, processing and transportation, creation of employment,<br />
disruption of socio-economic cohesion due to need for resettlement of communities among<br />
others.<br />
There are already existing mechanisms that have been engaging multi-sector stakeholders from<br />
government, from the private sector and NGOs mostly supporting community development and<br />
environmental management initiatives, some of the important institutions include:<br />
the National Council for Sustainable Development (C<strong>ON</strong>DES) established by the Law<br />
20/97 as a consultative organ of the Council of Ministers for coordination and effective<br />
integration of environmental considerations in all development activities in the country.<br />
Besides providing views on policy matters, the organ was also charged with discussing<br />
incentives to stimulate the adherence of the economic agents to the principles and<br />
practices of sustainable management of natural resources and environment in the<br />
country. The Decree 40/2000 the composition of this organ which include nine<br />
ministries among which of energy, environmental affairs, public works and housing,<br />
agriculture and rural development. The civil society, environmental experts and others<br />
can be invited to participate in relevant sessions. C<strong>ON</strong>DES is presided by the Prime-<br />
Minister.<br />
This is indeed well placed to discuss high policy level issues such as the biofuels policy, strategy<br />
and action plan.<br />
<br />
The National Council of Water created by the Law 16/91 is charged with among others,<br />
the task of informing the Council of Ministers regarding any ‘…critical and recurrent<br />
aspects that affect the development and conservation of water resources in the country;<br />
detect macroeconomic and macro-institutional factors that affect the development and<br />
use of water resources”. The same law creates the Regional (South, Centre, Zambezi and<br />
North) Water Administration Authorities which are responsible for approving<br />
concessions and licenses for water use rights and discharge of effluents, manage water<br />
17
allocation and minimize conflicts over use. Furthermore, the Scientific Council of Water<br />
presided by the Ministry of Science and Technology was established in 2004/5 to<br />
provide leadership in the research and policy analysis of water resources.<br />
With this institutional framework there is a strong basis for coordination, analysis of possible<br />
macro-scale impacts of water use in the country and advice the government on land allocation<br />
and approval of investments on biofuels.<br />
<br />
<br />
The government has created an inter-ministerial biofuels (technical) group comprising of<br />
the energy, agriculture, industry and commerce, science and technology, environment,<br />
finance, sustainable development council (C<strong>ON</strong>DES), investment promotion (CEPAGRI<br />
and CPI) as well as the oil distribution (PETROMOC) and electricity (EDM) supply<br />
companies. The existence of this commission and working groups on development of<br />
raw materials, sustainability criteria and development models, legal and fiscal<br />
framework and project evaluation is essential for coordinating policy development<br />
issues, research needs as well as overall development potential. However, it will be<br />
important in the context of the current study to examine the extent to which the concerns<br />
over the involvement of local farmers to ensuring equitable participation and benefit<br />
sharing are discussed.<br />
FUNAE is a National Fund for Energy which supports projects of alternative sources of<br />
energy such as biogas in Maputo as well as supporting the development and adoption of<br />
technologies at local level.<br />
The major gap 7 in this institutional arrangement is luck of explicit integration of the National<br />
Water Council or the National Directorate of Water and key civil society representatives dealing<br />
with conservation of resources, support of local development and also the association of the<br />
private sector for environmental management. It is important to have such a multi-sectoral<br />
institution to bring perspectives on costs and benefits as well as perspectives of existing and<br />
potential interested and affected parties.<br />
<br />
Civil society organizations concerned with sustainable management of environment and<br />
natural resources as well as monitoring of implementation of macroeconomic policies<br />
and programs such as the poverty reduction strategies are critical to keep a watch on<br />
development of biofuels in the country and its impacts.<br />
o FEMA is a private sector forum for environmental management. It has been<br />
playing a key role in assisting its membership to adhere to international<br />
environmental standards, to attain the appropriate certification of products, it has<br />
promoted the engagement of the private sector in corporate social responsibility<br />
and brought examples from other parts of the world to demonstrate how that<br />
pays (as profit it is the main driver of the investors), and recently commissioned<br />
a study and organized a seminar on biofuels. In the seminar some rather<br />
pertinent issues were raised. For example, the land availability for food and<br />
biofuel crops, analysis of varieties of crops (such as jatropha, sunflower, soy,<br />
African palm for biodiesel and cassava and sugarcane for biofuels) adapted to<br />
the different ecological zones and a critical analysis on possible competition for<br />
water resources. There was a strong call for clear definition of targets, analysis<br />
of possible competition of labour 8 availability for food production, production<br />
7 As far as the field study could establish<br />
8 Although there is apparently high level of employment, it is important to consider that in some sites there<br />
may actually be shortage which will require migration of workers from other sites. The Ministry of<br />
18
of cash crops such as cotton, tobacco and others and, the labour demand for<br />
biofuel; utilization of the marginal and degraded areas for plantation of biofuel<br />
crops to have a net positive impact in the sequestration of carbon. This forum is<br />
also part of the World Council for Sustainable Development, hence constitute an<br />
important party and partner that the government ought to bring on board on the<br />
policy discussions.<br />
o G20 is a forum of NGOs working on land rights, local development and other<br />
areas. This forum has been monitoring the implementation of the PRSP in the<br />
country and can be very instrumental in monitoring the poverty and<br />
environmental goals in the context of biofuels.<br />
o CBNRM forum, Friends of the Forest and other conservation organizations such<br />
as IUCN and WWF have been playing a key role in the processes of formulation<br />
and implementation of policies for engagement of communities in natural<br />
resources management and also in the establishment and management of<br />
protected areas (fragile ecosystems such as wetlands and overall conservation of<br />
biodiversity).<br />
The civil society is a very important partner who actually contributes significantly to the delivery<br />
of the policies at local level. Therefore, it should participate in the development of the biofuel<br />
policy and strategy as it can also bring field level concerns as well as playing a role in<br />
information dissemination and monitor the impacts on the ground.<br />
<br />
Training and research institutions particularly the Eduardo Mondlane University play a<br />
key role in the generation of knowledge. Some of the research gaps include the overall<br />
(realistic) trends in consumption of biomass energy and fossil fuels in the country and<br />
alternative energies, analysis of land use cover change, technologies for improved<br />
efficiency of use of biomass. The university has started to work studies related to biofuel<br />
production in the country. Currently, the Faculty of Agronomy and Forestry Engineering<br />
is engaged in various aspects of research such as the case of pests and diseases<br />
associated with jathropha which can affect other species of the genera Euphorbiacea.<br />
The Faculty is collaborating with Wageninger University in a one year regional research<br />
initiative to analyse the interaction between production of biomass and change in use and<br />
land cover as well as the economic impacts. Another initiative, involving the above<br />
mentioned institutions and the University of Viçosa in Brasil, is a four year research to<br />
develop production and processing models as well as scenarios of socio-economic and<br />
environmental implications. The Faculty of Engineering, Chemistry Department hosts<br />
the President of the Scientific Council of Energy who is part of a working group that is<br />
to undertake studies in the different provinces. This Faculty is primarily responsible for<br />
the industrial component of biofuels production, mostly research on technologies for<br />
small scale production (gasification of carcasses of coconut, water from wood and<br />
cashew nut processing; biogas, improved stoves for utilization of biomass energy, etc.).<br />
The Faculty of Engineering has also engaged in collaborative research with the<br />
University of Dar es Salam in a SAREC supported programme. In addition, a high level<br />
training programme to build capacity on research of various technologies for production<br />
of alternative fuels is being implemented. The International Institute of Tropical<br />
Agriculture is also working with the Mozambique Institute of Agriculture Research<br />
(IIAM) on the improvement of cassava for production of biofuels.<br />
Planning and development is also conducting a study using a General Equilibrium Model to establish the<br />
impact of biofuels in food crop production including an analysis of the marginal productivity of labour.<br />
19
This shows that in as far as research is concerned, there are a number of ongoing initiatives, but<br />
whether there is coordination and focus on applied science is not clear.<br />
At this stage of establishment of a policy framework and instruments to regulate this emerging<br />
area (in the national context) it is imperative to bring in a large spectrum of institutions. The Box<br />
3 below highlights some of the critical links that should complement the inter-ministerial<br />
committee on biofuels.<br />
Box 3 The missing/weak links in the institutional framework<br />
Ministry of<br />
Agriculture<br />
Ministry of<br />
Energy<br />
Environment, C<strong>ON</strong>DES<br />
and other ministries<br />
Biofuels Inter-ministerial Committee<br />
Civil Society<br />
National Council of Water<br />
Research institutions<br />
<br />
The external players comprise of donors facilitating or supporting the policy<br />
development and various investors seeking to explore the opportunities particularly the<br />
apparent existence of large tracks of ‘unused’ land in Mozambique. The donors currently<br />
involved include the World Bank, the Italian government, the German government<br />
through GTZ, the Netherlands, the EU and the Finnish. The initiated (April 2008) a<br />
study in Mozambique and Zambia to look at the prospects for implementing the Mbono<br />
(Jatropha curcas in Kiswahili) Concept in which Preseco Ltd can form<br />
partnerships/interventions in the region (including Kenya, Tanzania and Uganda). The<br />
objectives of the study include an analysis of ecological, technical and socio-economic<br />
information in the countries as well as study and develop alternative concepts for biofuel<br />
production and export. The interests in this area include companies from Great<br />
Britain, Spain, Portugal, Brazil, India, South Africa, Scandinavia, Italy and Canada.<br />
These institutions have an important role to play in guiding the process in terms of<br />
observation of social and environmental ethics in the production of biofuels and in fact<br />
should contribute to ensure that adequate legislation is in place before occupying large<br />
extensions of land. Although it seems too much to expect investors not to explore the<br />
weaknesses in the system to acquire resources but the external market and the<br />
enforcement of certification of the produce as well as intervention of the civil society<br />
should stimulate the investors to comply with norms and good practices.<br />
20
4. <strong>BIO</strong><strong>FUEL</strong> PRODUCTI<strong>ON</strong> INITIATIVES IN THE COUNTRY: BUSINESS FOR LARGE AND/OR<br />
SMALL SCALE PRODUCERS?<br />
4.1 COMPANIES WITH <strong>BIO</strong><strong>FUEL</strong>S AS THEIR MAIN BUSINESS<br />
Since the government campaign for introduction of Jatropha in the country, many investors<br />
largely from Europe have flocked the country to prospect opportunities for production of<br />
bioenergy including biodiesel and bioethanol. Currently the official information indicate that<br />
there are more than 152 thousand ha corresponding to 9 companies in the provinces of Maputo,<br />
Gaza, Inhambane, in the South and Manica and Sofala in the centre of Mozambique. These<br />
investments<br />
in the processing phase comprise of 38% of the area for production of Jatropha (for biodiesel) and<br />
62% for sugar cane (for bioethanol). The manifestations of intention to invest reach about 2.7<br />
million ha (Albino, 2008) by 28 companies of medium and large scale. Some of the investments<br />
have been approved by the Centre for Promotion of Investment (CPI) but are pending approval on<br />
land allocation due to the need for zoning or the land allocated has been significantly reduced.<br />
There are various aspects being observed in the demand for land for biofuels. For example, there<br />
are requests of land use change from production of tobacco or cotton, or request of productive<br />
land for agriculture to plant Jatropha which is deemed to be appropriate for agriculture marginal<br />
areas, request of large areas which include infrastructure such as schools and clinics.<br />
PROCANA<br />
According to Biopact web site “Pro-Cana is a private company with British interests set to invest<br />
US$510/€375 million for the construction of a plant for the production ethanol, sugar, electricity<br />
and fertilizers in the district of Massingir, in Mozambique's southern province of<br />
Gaza.“ Although the initial intent was to produce around 600 thousand m 3 of bioetanol, the raw<br />
material is estimated to be sufficient to produce of only a third of that output. This initiative is<br />
also of interest for this study as it shows a clear land use conflict as well as undermining<br />
community rights to land as earlier discussed. The Box 1 shows the expectations or potential<br />
benefits of production of biofuels in Gaza province by PROCANA.<br />
Box 4 Background on the company (PROCANA) and envisaged benefits (source: Biopact web site)<br />
o<br />
o<br />
o<br />
o<br />
o<br />
o<br />
Procana is the first to build a large integrated fuel-food-fertilizer plant in Africa<br />
Company owns an ethanol plant in Brazil.<br />
Gaza province is expected to be able to support the production of around 220 Petajoules of biomass energy<br />
in a sustainable manner (i.e. without deforestation and without impacting local food, firewood, fodder and<br />
fibre supplies);<br />
Besides biofuels and sugar, the new plant will generate electricity from bagasse, a byproduct of sugarcane.<br />
This would enable to decrease the consumption of power generated at the Cahora Bassa Dam, which could<br />
eventually be exported to other countries in the region such as Zimbabwe, South Africa, Swaziland, Malawi<br />
and Botswana.<br />
The project in Massingir (Gaza province) involves the establishment of 30,000 hectares of sugar cane,<br />
besides other infrastructures that will benefit the local communities.<br />
Employment creation – Procana expected to generate in its first stage at least 7,000 new jobs for the people<br />
of Massingir and surrounding areas, and "therefore it is welcome, as it will contribute largely in the fight<br />
against poverty in Mozambique".<br />
“It is beyond any doubt that production of ethanol is one of best opportunities for the country. [...] We want to<br />
diversify our economy because we don't want [...] to depend on just four major products of export. We would like to<br />
contribute with some other products, such as alcohol. We can also contribute with the export of electricity, as the<br />
sugar mill could also generate electrical power and sell it to the domestic market. - Mozambique's Agrarian<br />
Promotion Centre spokeperson.”<br />
21
SEKAK or Eco-energia<br />
Eco-energia or SEKAB is one of the prospective large companies for production of biofuels both<br />
in terms of area (120 9 -150 000 ha) and the scale of the processing (3 to 6 units) as well as the<br />
market. 85% of the production will be exported to Scandinavian countries and negotiating a<br />
Memorandum of Understanding (MOU) with the Ministry of Energy to supply the domestic<br />
market through PETROMOC. This company represents a Swedish company with long tradition<br />
in production of ethanol a process that has started in the early XIX century (1909). They intend to<br />
carry out production in non-contiguous areas covering seven districts in the province (Figure 2).<br />
The company has been undertaking extensive studies in the area: socio-economic, ecology and<br />
environment, soils, infrastructure development such as dams and reservoirs for water and<br />
generation of electricity.<br />
4.2 SUGAR PRODUCTI<strong>ON</strong> COMPANIES: PRODUCT DIVERSIFICATI<strong>ON</strong> AND EXPLORATI<strong>ON</strong> OF<br />
EMERGING MARKETS<br />
The increase in demand for production of bioethanol and traditionally sugar producing companies<br />
are also planning to or already exploring this new opportunity. According to Biopact web site<br />
“Currently, the Mozambican authorities are in the process of expanding the sugar industry in<br />
Mozambique to diversify the country's economy. In 2006, the Mozambican sugar industry<br />
achieved the highest production of the last 30 years, by producing 300.000 tons in the existing<br />
four plants currently operating in the country, namely Marromeu and Mafambisse, in the central<br />
province of Sofala and, Maragra and Xinavane, in the southern province of Maputo”. Further the<br />
Ministries of Energy, Trade and Agriculture are engaged in discussions and coordination for<br />
production of biofuels particularly ethanol and to explore the potential for producing electricity.<br />
The next section gives some details on what is happening as far as ‘biofuels movement’ is<br />
concerned.<br />
4.2.1 Production of biofuels: are there any prospects in the Zambezi Delta?<br />
According to the provincial authorities of agriculture and forestry in Sofala there are many<br />
manifestations 10 of interests by investors to produce biofuels in the province. However, they<br />
reiterated the importance of the conclusion of the zoning exercise and its approval by the Council<br />
of Ministers to ensure that allocation of land is only in the marginal (in terms of soil and also<br />
rainfall) areas for food crop production. However, the authorities are also wary of the fact that<br />
cassava is an important crop in the diet of the population and one of the crops that withstand poor<br />
soil and limited water. This conflicts clearly with the areas that are deemed adequate for Jatropha.<br />
This crop is also known to be a host of a virus (mosaico) that attacks cassava and that certainly<br />
holds a potential negative impact on food crop production.<br />
9 Planned maximum transportation distance of 30 km to the ethanol processing plant to minimize transport<br />
costs and ensure efficient supply of raw material<br />
10 Dono district (Elaion -1000 ha already being explored for jatropha and cassava), Cheringoma (Mozamba<br />
and Gruja) – 20 000 ha for Enerterra and 10 000 ha for Niquel Lta already approved, Envirotrade is<br />
working with communities in carbon projects and is conducting a trial of mixed cropping of jatropha with<br />
food crops in Nhambita.<br />
22
The provincial authorities also added that Sofala province hosts important resources such as<br />
forests, wildlife in protected and outside protected areas and more importantly in relation to<br />
biofuels the province has wetlands of international importance (the Zambezi Delta or the<br />
Marroumeu-Cheringoma) with a rich habitat for flora and fauna. Therefore, these areas would not<br />
be recommended for biofuel production. However, there are requests for land in Chemba along<br />
the Zambezi Basin for cultivation of sweet sorghum in 15000 ha. The plantation will be in<br />
clusters of small acreage to minimize the interference with other activities and health of the<br />
wetland. It is important to note that Sofala province is deemed as one of the few provinces that<br />
have a history of strong and firm agriculture sector authorities who put the law and the technical<br />
viability in the decision making process. Will they withstand the pressure on land for biofuels?<br />
The Zambezi delta was a central area of interest for WWF (TOR) for effects of comparability of<br />
activities along the Zambezi basin with Malawi and Zambia. The current scale of biofuel<br />
activities particularly does not seem to be significant at this stage. It is important to bear in mind<br />
that the pressure may increase as from when the policy, the strategy and the zoning plans are in<br />
place.<br />
Açucareira de Marromeu (Zambezi Delta) is one of the largest sugar companies in the country<br />
and it currently employs about 8 000 people and the company uses about 2.5 million liters of oil<br />
per annum in the production process, import of inputs and export of the final product. The<br />
company intends to invest about USD 10 million in biofuels mainly from reduction of the current<br />
export of molasses for production of ethanol. The objective of such undertaking is mainly to<br />
blend with fossil fuels and reduce the production of the company. They consider Mozambique<br />
one of the expensive countries for business particularly the logistics for export and the scale of<br />
production (if they embark on it) would not justify the export costs. The additional line of<br />
production would not add significantly to the social benefits as the new jobs are likely to be as<br />
few as less than a 100. Currently the company has no out-grower schemes although it might<br />
consider doing so in future.<br />
On the contrary, the Açucareira de Moçambique (Mafambisse, Dondo District) has requested an<br />
expansion of the area (to 7 000 ha)of plantation of sugar cane with the aim of increasing the<br />
production of sugar from the current 60 thousand tons to 360 thousand tons (2009/2010). Of this<br />
only about 400 ha will be allocated to outgrowers. Similarly to the Açucareira de Marromeu this<br />
company awaits a clear government policy and strategy to decide on whether and when to embark<br />
on production of bioethanol. The EIA for this expansion was discussed in the previous section.<br />
4.2.2 Production of Biofuels: some examples elsewhere in the country<br />
Some sugar companies have requested expansion of their areas allegedly to increase sugar<br />
production. It is not clear yet whether this is also a security measure to ensure availability of raw<br />
material for diversification of production to biofuels in future.<br />
The Tongaat Hulett’s company (South African) which is the owner of the Açucareira de<br />
Xinavane (Maputo province) and Açucareira de Moçambique (Mafambisse, Sofala province)<br />
sugar companies besides other investments in South Africa, Swaziland and Zimbabwe defines its<br />
strategic platform to increase sugar production capacity from 1.119 million tons in 2007 to about<br />
1.945 million by 2009. The current expansion in Mozambique investment (Xinavane and<br />
Mafambisse) will cost R1.3 billion (or USD 185.714 million). The main markets aimed at include<br />
the EU in the initiative ‘Everything But Arms’ (EBA) and the USA under AGOA scheme. The<br />
production capacity is expected to increase from 156 to 286 thousand tons of sugar in 2009 and<br />
23
320 thousand tons in 2010 corresponding to additional 2555 ha of land. Other sources of<br />
information indicate that the Açucareira de Xinavane has currently 5 474 ha of land of which 500<br />
ha are cultivated by smallholder farmers and 1500 ha by a private company supplying sugar cane<br />
to the company. The additional area cover 5800 ha of which only 5300 ha actually be planted.<br />
The additional area is transacted from a former cattle farm which has been lying idle 11 since the<br />
advent of the war.<br />
On the one hand, the increase in production is driven by increased attractiveness of the market<br />
such as the doubling of EU imports to 3.5 million tons per year once the new economic<br />
partnership agreements enter into force from late 2009. However, the company also<br />
acknowledges the opportunities offered by the emerging need in Southern Africa for increased<br />
realization of bagasse, molasses and other sugar cane biomass for generation of electricity and<br />
bio-ethanol production. The free access to EU market is a particular attraction for the company to<br />
produce biofuels from Mozambique and the Xinavane expansion is particularly to capitalize on<br />
that opportunity. The same source indicates that the potential generation of 660 MW of electricity<br />
could result in a positive environmental impact. It would mean saving 2 million tons of coal<br />
annually and reduce CO 2 emissions by 2.25 million tons. However, there is an increasing concern<br />
over the use of food crops such as maize for production of biofuels. In fact, the high prices of this<br />
cereal over the last three years have also been driven by its use for biofuels production. For<br />
example, safeguarding for food security the government of South Africa despite approving a<br />
biofuels industrial strategy in December 2007 which targets an initial use of 2% (or 400 million<br />
litters per annum) over the next five years, it has explicitly excluded the use of maize as raw<br />
material for biofuels (Tongaat Hulett, 2007).<br />
4.3 BLENDING, STORAGE AND DISTRIBUTI<strong>ON</strong> TO LOCAL AND EXTERNAL MARKETS<br />
PETROMOC is a public limited liability company with the State controlling 80% of its shares. It<br />
has the largest network of distribution of oil products with 119 filling stations and 118 local<br />
consumers; it has warehouses and pipelines (Appendix 2). Its storage capacity is about 500 000<br />
m 3 , with annual sales of about 333 thousand m 3 for the domestic market with 34% participation<br />
and 93 thousand for foreign markets. Besides supplying the major industrial and commercial<br />
sectors in Mozambique also supplies fuels to Zimbabwe, Zambia, Malawi and Democratic<br />
Republic of Congo. The company is equally involved in the search for alternative sources of<br />
energy such as biofuels. The motivation is to reduce the current oil shock. Such engagement is<br />
considered to provide socio-economic benefits for all participants in the production chain,<br />
reduction of greenhouse gas emissions, progressive replacement of imports of fossil fuels and<br />
increased export of biofuels as well as contribute to what is considered ‘indisputable perfect<br />
vector against poverty and promotion of the Made in Mozambique products’. Therefore, the<br />
company sees itself as a key player particularly as regards the logistics of biofuels (PETROMOC,<br />
undated).<br />
PETROMOC (2008) presents its development strategy which prioritizes biofuels to mitigate the<br />
expenditure on the import of fossil fuels which has increased in a five year period from USD 45<br />
million to USD 600 million, promote economic development and contribute to environmental<br />
sustainability. The company is involved in various partnerships to develop additional combined<br />
storage facilities to over 2 million m 3 . The company is part of a multi-sector task force set up by<br />
the government following the 2005 national workshop on biofules. The task force is charged with<br />
11 Part of the area was under cultivation by local farmers. They were asked to vacate the land after harvesting their<br />
crops<br />
24
collecting and collating information for the preparation of the National Biofuels Strategy.<br />
PETROMOC is the ‘operational vehicle for the overall Government strategy on biofuels’. The<br />
corporation has partnerships with various companies aiming to produce bio-diesel from crops<br />
such as Jatropha curcas, Trichilia emetica and it is also forming partnerships to carry out<br />
research and development of a hybrid of sweet sorghum and local varieties. However, substantial<br />
partnerships include seven companies which are likely to occupy a total of 300 out of 548 12<br />
thousand ha of biofuel projects in the provinces of Maputo (Xinavane), Gaza (Massingir), Sofala<br />
(Buzi and Caia), Cabo Delgado (the largest initiative of 150 000 ha in clusters distributed in the<br />
districts of Ancuabe, Balama, Chiure, Montepuez and Namuno). The combined production<br />
capacity of ethanol of these companies is in excess of 1 million m 3 per annum (i.e, 10 times more<br />
than the domestic market can currently consume). These initiatives involve large amounts of<br />
investment. For example, three of the companies (in Massingir, Buzi) are claiming to invest over<br />
USD 1.158 billion. The role of PETROMOC in the various partnerships includes progressive<br />
blending with respective fossil fuels, transportation, handling, storage and distribution of biofuels<br />
in the domestic markets.<br />
PETROMOC is also a shareholder in the Ecomoz (Renewable Alternative Energies Ltd)<br />
company which has a biodiesel plant with capacity for producing 40 000 m 3 /annum. The<br />
company is already producing biodiesel from coconut oil supplied from Inhambane province.<br />
Almost a year after starting production, the plant is already facing shortage of raw material<br />
(PETROMOC, 2008). It should be noted that the coconut has traditionally been processed into<br />
copra for production of soap and cooking oil and coconut milk which is an important ingredient<br />
of the coastal cuisine. Therefore, a steady supply of coconut to this new industry would require<br />
expansion of the plantations or deviation of the habitual use for biofuels. This is likely to compete<br />
and impact on the local consumption, raising again the question whether the crops should be for<br />
running cars or feeding people. The strategy of Ecomoz is to offset this is to engage in the<br />
development of projects for production of oil baring crops, stimulate participation of the rural<br />
communities in production and commercialization of vegetable oil and imports of vegetable oil.<br />
The latter option brings challenges as regards the prices and competitiveness of the final product<br />
to the local and international markets.<br />
The examples here presented show the scale of production that is being envisaged, particularly in<br />
as far as land demand is concerned and proportionally this is likely to have significant impact on<br />
the land tenure security for the rural communities. Further, water demand for irrigation of large<br />
scale production of crops for biofuels needs attention in order to establish the potential impact on<br />
agriculture production.<br />
4.4 WHERE DO OUTGROWER AND SOCIAL BENEFITS FEATURE IN ALL THIS?<br />
One of the main objectives of this study was to look at the level of involvement of the small<br />
growers and how integrated they are in the biofuel production chain including micro-initiatives<br />
that they could run on their own. Therefore, evaluating economic and financial potential and the<br />
role of community participation on energy strategies, poverty reduction and impact on the<br />
environment was considered to be an important aspect to shed a light on. However, from the field<br />
study it was only possible to have some general information on the small scale activities being<br />
undertaken in different parts of the country for the production of biofuels. Some initiatives<br />
mentioned include: (i) the South African farmers that settled in Niassa province introduced the<br />
12 All statistics in this paragraph are author’s estimations based on information presented in Petromoc<br />
(2008).<br />
25
production of vegetable oil for running the farm machinery and cars; (ii) in Manica there are<br />
plantations of jatropha and coconut for producing biodiesel at small scale used for runing the<br />
farm equipment; (iii) in Tete, Nampula, Gaza, Sofala (in the Gorongoza region) and Inhambane<br />
are other provinces engaged in the production of jatropha at small and medium scale; (iii) the<br />
PETROMOC initiative of production of biodiesel from coconut has been relying on two major<br />
areas of supply which are Inhambane and Zambézia provinces. These two provinces have been<br />
traditionally centres of large areas of production mainly owned by small holders in a programme<br />
that has been well integrated with copra processing. However, the crop has been for the past<br />
decade affected by a disease that is decimating many trees or reducing significantly their<br />
productivity. The biodisel initiative was started gain without a proper integration with the<br />
production of raw materials to ensure quantity, quality and competitiveness in relation to other<br />
uses of the same crop.<br />
As mentioned earlier the local people were the main target of the initial wave of biofuel<br />
production when massive political campaigns were undertaken by top level political entities.<br />
They mobilized the engagement of smallholders in jatropha production. Jootse (2003) illustrated<br />
the potential benefits of jatropha (control of soil erosion, oil – lubricant, soap production,<br />
biodiesel, etc. - hedges, medicinal, honey, etc.) and recommended that there be a central<br />
processing facility for farmers to deliver the seen and enumerated a set of socio-economic<br />
benefits of the same. However, luck of clear strategy in the development of local capacity for<br />
production and introduction of simple technology for processing and marketing of jatropha are<br />
behind the desolation of the farmers today: anecdotic evidence shows that communities in some<br />
districts have been so frustrated by the bumper seed crop that they harvested and took it to the<br />
local administrations.<br />
It is important for the authorities and all involved in facilitating the production of biofuels at<br />
small scale to undertake a thorough investigation of the potential and costs and benefits at<br />
medium and long term. It would be interesting for this study to have been able to bring such<br />
information; however the scope and time allocation could not permit a detailed application of an<br />
analysis of financial and economic viability of production of biofuels at small scale. Nevertheless,<br />
the Boxes 5 and 6 provide two examples of associations of sugarcane producers located in the<br />
District of Manhiça (Xinavane) who are involved in the supply of raw material to the sugar<br />
company. One important aspect to note is that despite the fact that the company is planning to<br />
produce biofuels, these farmers were not aware (May 2008). One of the groups however, has<br />
questioned the company regarding the need to add value on the price of sugar cane considering<br />
that this produces sugar as well as molasses and bagasse which is used for generating energy,<br />
hence with a market value. There was no clear indication on whether the company was to pay a<br />
higher value for the produce. The market arrangement is such that there is dependence of the<br />
association in relation to the sole buyer reducing their bargaining power. However, there is<br />
indication that farmers are already aware of the value of the crop and certainly the diversification<br />
of production should also reward the farmers.<br />
Both associations are formally registered as such following the law of association which<br />
establishes the structures such a director, treasurer, assembly among others to ensure formal and<br />
transparent operations. The involvement of smallholders in the production of biofuels feedstock is<br />
likely to yield benefits in combating hunger and poverty. However, different scenarios need to be<br />
analysed as regards the size of land holdings (e.g. 3, 5, 10); the family labour structure,<br />
possibilities and implication of labour hiring in engagement of more commercial and higher<br />
return endeavours, source of financial support among others. In addition, the cumulative<br />
environmental impact would have to be analysed more closely. This could only be done with a<br />
specific focus on the smallholders from a selection of sites and for different crops.<br />
26
Box 5 Experience of Maguiguane Association of sugar cane producers in Xinavane<br />
The association was established in 1999/2000, it has 66 members and a total area of 84 ha; each<br />
member has an individual plot and they all produce collectively in 6 ha for meeting the costs of running<br />
the association including the payment of the technical assistance, water, irrigation equipment,<br />
agricultural inputs, running costs of the office among others. They have had a contract with the<br />
Açucareira de Xinavane for 9 years now and the duration is undetermined. The contract establishes that<br />
the company facilitates the acquisition of all farm inputs and equipments and farm equipment, once the<br />
produce is harvested the company keeps up to 30% of the association’s revenue to meet the costs of the<br />
services rendered to them. In 2007 they produced 7218 tones of sugar cane. In 2006 each member<br />
received 23 million Mt which is equivalent to about (USD 950) or about USD 805/ha after deduction of<br />
all costs. In 2007 the revenue increased to 33 million Mt or USD 1375 per member and this is expected<br />
to be around 1600 by the end of the current harvesting season. The members of the Board of Directors<br />
(7 people) have an additional income of USD 750 per year given as subsidies for the time spent dealing<br />
with association matters. The association also has invested in a chicken farm, opened a borehole<br />
supplying potable water to the community in the vicinity. Other benefits include contribution to local<br />
festivities, funerals but above all the houses of members of the association have been improved (use of<br />
conventional materials), 30% of which have electricity, they have invested in cattle and kilns for<br />
production of bricks and pottery.<br />
Box 6 Experience of the Macuvulane Association of sugar cane producers in Xinavane<br />
This association started in 1964 as an association for production of cereals and cotton. However, the<br />
activities were discontinued during the 16 civil war which ended in 1992. The community was also<br />
affected by the floods of 2000 which inundated the area. The soil continues saturated and it does no<br />
longer produce cereals. The sugar cane was, therefore, an alternative activity. The association of sugar<br />
cane producers started in 2005 and it is in the third harvesting season. The association is comprised of<br />
186 members and covers about 184 ha and around 15 ha that belongs to all members and they cultivate<br />
collectively. In the last harvesting season the produce reached more than 24,6 thousand tons or about<br />
131 ton/ha. Each member received an average of 45.4 million Mt equivalents to USD 1892. The<br />
members of the Board of Directors receive additional USD 1200 per year. The association does not as<br />
yet have a formal contract with the sugar company although this provides technical support and all<br />
other inputs and equipment. Up on harvesting the company keeps 45% of the revenue to cater for the all<br />
the costs of production. The association is also funding some of the inputs/equipments using credit<br />
given by a local development bank. This association has enquired about the prospects for sharing<br />
revenue generated from the sugar production by products: molasses and bagasse.<br />
The EU is also exploring the possibilities of supporting the creation of an association of about<br />
200 members to produce sugarcane to supply one of biomass for biofures in Sabie, which is along<br />
the Incomati river basin that supplies water to the Acucareira de Xinavane and Maragra. This<br />
offers an opportunity to identify a sample of involved farmers and conduct a more detailed<br />
viability study.<br />
27
5. C<strong>ON</strong>CLUSI<strong>ON</strong>S AND RECOMMENDATI<strong>ON</strong>S OF THE <strong>STUDY</strong><br />
This UN framework highlights some of the critical aspects that the governments ought to consider<br />
before embarking in large scale production of biofuels. The Mozambique government certainly<br />
started the process in rather an add hoc manner with a populist mobilization of communities to<br />
plant Jatropha curcas for biodiesel, and recently allocated an area for production of sugarcane for<br />
bioethanol. This is changed and various aspects contained in the framework such as development<br />
of policies that safeguard the interests of sustainable development and generation of knowledge<br />
are currently happening in the country. The government acknowledged the complexity and<br />
controversies surrounding this area of investment that it has decided to exercise caution. The<br />
actions taken include:<br />
o the assessment of potential for producing biofuels in Mozambique which was supported<br />
by the World Bank and the Italian governments;<br />
o the establishment of the inter-ministerial task force and working groups to coordinate<br />
and support decision making and establishing a conducive policy environment through<br />
development of a biofuels policy, strategy and plan;<br />
o the adjournment of the allocation of land until the nation zoning (albeit at small scale 1:<br />
1 000 000) is completed and approved by the Council of Ministers.<br />
o The testing of blending of bio and fossil fuels by PETROMOC where the State is a<br />
major shareholder is also an important step to establishing the technological and<br />
logistical capacity to serve the national and the regional market supplied oil through this<br />
company.<br />
These are certainly positive steps and important preserves for ensuring informed decision making.<br />
However, there is room for improvement: harmonization of sectoral policies, institutional<br />
coordination, organized debate on critical issues (e.g. land for food or fuel), and commitment to<br />
delivering on existing policies. For example, this study highlighted the set of existing policies that<br />
constitute a platform for the formulation and implementation of the policy and strategy on<br />
bioenergy production in the country. The discussion of the policy content and some practical<br />
experiences in the field has shown some serious disconnections, particularly in relation to the<br />
protection of legal community rights. The successive dispossession and transfer of formal rights<br />
from communities to investors denounce a gross or deliberate misunderstanding of the spirit that<br />
guided the establishment of such legal provisions in the face place. This has a short term impact<br />
with long term consequences on the livelihoods of the people that are apparently a target of<br />
government macroeconomic policies. The consultation of the communities and formation of<br />
partnerships would bring communities and the private sector as shareholders with the community<br />
contributing land and labour while the private sector would bring the technological know how<br />
and the investment capacity. Addressing hunger and poverty should not be seen as mutually<br />
exclusive with promotion of growth. Concomitant interventions are necessary and mutually<br />
beneficial partnerships can deliver on both more efficiently than investing in conflict management.<br />
The country is still in a process of establishing the technological capacity for production of<br />
biofuels, as it was shown there is only one large scale investment approved and establishing the<br />
production of raw material and a processing plant (PROCANA), the initiatives by sugar<br />
producing companies are yet to produce results. The prospective investors from Europe, Brazil<br />
and Scandinavian countries do bring technology that has been tested and it is producing results.<br />
However, the adaptation to the context of Mozambique (socio-economic, infrastructure,<br />
28
institutional arrangement, etc.) will be determinant to yielding meaningful economic benefits for<br />
the country and positive environmental impacts. PETROMOC is leading the technology<br />
development having installed a plant for production of biodiesel and has been testing the market<br />
for that. The Eduardo Mondlane University and other international research institutions are also<br />
engaged in research of technologies that can be used at small scale level and hopefully contribute<br />
to improving the crop production techniques (e.g. running equipment with biodiesel) and increase<br />
food production. Lessons from introduction of jatropha demonstrate that there is need for<br />
integrating production, processing and market for smallholder production to minimize the<br />
opportunity cost of labour, land and lessen the possibility of driving the farmers to further<br />
impoverishment.<br />
Currently the main drivers of biofuels production in Mozambique are the external markets,<br />
particularly European. The domestic consumption is small to justify the demand for land and the<br />
level of investment in processing. However, this can also stimulate the growth of the market and<br />
the agricultural sector, particularly production of food crops for local consumption and eventually<br />
export require low cost fuels.<br />
In terms of the current land demand, it reaches almost 3 million ha, but only about 150 000 ha<br />
constitute projects either approved or under consideration. The general perception is that<br />
Mozambique has plenty of unused land which would be available for biofuel crops. However, the<br />
absence of land inventory and zoning, lack of harmonization of various demands for land poses a<br />
big challenge in establishing what is actually empty and degraded land, how to share and ensure<br />
equitable access to water resources for human consumption and economic activities such as<br />
biofuels production.<br />
The levels of production are not clear as yet. However, there is indication that only the current<br />
partnerships that PETROMOC is establishing require a storage capacity of about 2 million m 3 .<br />
Therefore, it can be roughly estimated that if the projects in pipeline are approved the capacity<br />
may double with domestic consumption of 2.5 to maybe 5%.<br />
The potential for involvement of outgrower schemes is enormous but the strategy is yet to be<br />
developed. This study used the associations of sugar cane producers to analyse the current and<br />
potential gains from such engagement. The financial and economic benefits can be realized, but<br />
there is need for a more focused analysis considering the land and labour availability that would<br />
be required for investing in a viable enterprise. It is clear that the people who are currently<br />
engaged in the production of sugar cane have transposed the poverty line threshold and they are<br />
investing in improving their livelihoods and even providing services to wider community such as<br />
water. The support systems have to be well integrated in the bioenergy strategy and action plan.<br />
From the economic point of view the market arrangement of monopsony (many producers and<br />
one large buyer) is problematic in the sense of reducing the power of the seller (community<br />
associations) to negotiate favourable terms of sale contract.<br />
The environmental gains claimed such as reduction of green house gases associated with biofuels<br />
need to be looked more closely. The environmental impact assessment and monitoring are key to<br />
establishing the levels of soil degradation, water contamination and other forms of pollution<br />
versus the environmental benefits of biofuels. The existing environmental policy framework in<br />
Mozambique is sufficient for such analysis to be undertaken. However, the capacity to monitor<br />
implementation of mitigation measures need strengthening.<br />
The current institutional framework seems to focus on high level policy and technical institutions<br />
mainly drawn from government. Even at that level, the absence of key sectors such as the water<br />
29
sector from the technical committee seems to be an oversight that needs to be addressed. The civil<br />
society is a partner that can support the policy development process which does not seem to<br />
engage with local level government authorities and less so with the communities. There has to be<br />
a link between the macro-aspirations and the concerns of the local people who in the last instance<br />
will be affected by those policies. During this study there was no obvious concern and<br />
engagement of all levels in this process.<br />
The main recommendations of the study include:<br />
(i) a review of the current institutional (Box 3) set up at technical and political level to address the<br />
biofuels;<br />
(ii) support to ensure that the development of biofuels production are guided by the existing<br />
legislation on land, forestry, wildlife, water and environment to avoid conflicts;<br />
(iii) the Ministry of Agriculture should lead the discussion on the land policy particularly as<br />
regards the protection of community rights, the size of land that communities can secure rights<br />
over and the type of negotiating rights and obligation associated with that. This go beyond the<br />
investments on biofuels: the devolution of resources rights to local communities need to be<br />
critically looked at, dissemination to local authorities needs to be secured given the current<br />
dynamics of institutional representation. The civil society has an important role to play.<br />
(iv) C<strong>ON</strong>DES as a cross sectoral policy body should steer the development of Land Use Planning<br />
Policy, Land Use Planning and Integrated Zoning taking into account the law on territory<br />
planning. The add hoc zonings are useful at micro-level, however they need to be guided by a<br />
more comprehensive analysis of land capacity and best use;<br />
(v) the ministries of agriculture and environment should lead the development of a Strategic<br />
Environmental Assessment of the National Biofuels Strategy to offer the Ministry of Energy, the<br />
Ministry of Industry and Commerce, the Centres for Investment Promotion a guide or checklist of<br />
issues that need to be addressed by investments in this sector;<br />
(vi) conduct a detailed analysis of financial and economic viability of smallscale production of<br />
biofuels and support needed (technical, financial and institutional) in targeted areas were biofuel<br />
investments are taking place.<br />
30
6. BIBLIOGRAPHY<br />
AIM (2007). Mozambique: British Company to invest US$510 million in sugar and ethanol plant.<br />
AllAfrica.com web page.<br />
Bioenergy Pact between Europe and Africa. Website.<br />
Carlos, Serra (2007). Colectânea de Legislação do Ambiente. Centro de Formação Juridico e<br />
Judiciária. Ministério da Justiça. Maputo.<br />
CEPALAGA (2007) Estudo de Impacto Ambiental da Fábrica de Açúcar da Açucareira de<br />
Moçambique, SARL. Beira.<br />
CEPLAGA (2006). Estudo do impacto Ambiental para o projecto de Propriedade de Cana de<br />
Açúcar de Muda-Chidassicua - Açucareira de Moçambique, SARL. Beira.<br />
C<strong>ON</strong>TOUR (2006). Plano de desenvolvimento de Negócio para Conservação da Natureza na<br />
Comunidade de Cubo. AWF. Volume 2.<br />
C<strong>ON</strong>TOUR (2006). Plano de Gestão Estratégica. Comunidade de Cubo. AWF. Volume 1.<br />
DINATEF (2008). Relatório de Balanço Anual 2007. Draft. MINAG. Maputo.<br />
DNENR (2008). Situacao dos biocombustiveis no pais. ppt<br />
DNTF (2006). Estratégia Nacional de Reflorestamento. Por um desenvolvimento de plantações<br />
florestais suntentáveis. Presentation at the 1 st National Meeting on Lands and Forests. Maputo<br />
FAO (2007). Bioenergy and Food Security Project. FAO web site.<br />
FAO (2007). State of World’s Forests. FAO. Rome<br />
GoM (2006). Poverty reduction strategy 2006-2009. Ministry of Planning and Development.<br />
Maputo.<br />
Himede, J. (2008). Bioenergy and Sustainable Development: opportunities and challenges. Ppt<br />
presentation in Washington.<br />
Impacto (2006). Projecto de Expansão da área de plantação de cana de açúcar em Xinavane.<br />
Estudo de pré-viabilidade ambiental e definição de âmbito. Açucareira de Xinavane, SARL..<br />
Maputo.<br />
Impacto (2007). Plantação de cana de açúcar e produção e armazenamento de açúcar em Maragra,<br />
Manhiça. Estudo de pré-viabilidade ambiental e definição de âmbito. Maragra Açúcar SARL .<br />
Maputo.<br />
31
IRIN (2007). AFRICA: Food to eat or to run your car ? UN Office for the Coordination of<br />
Humanitarian Affairs.<br />
Jootse, Martin (2003). Jatropha and Biodiesel in Mozambique. SASOL. Maputo<br />
MADER (2004). PROGRARI II: Strategy Document. Ministry of Agriculture and Rural<br />
Development. Maputo.<br />
Marzoli, Antonio (2007). Avaliação Integrada das Florestas de Moçambique. Inventário Florestal<br />
Nacional. DNTF/MINAGRI. Maputo.<br />
Preseco Oy (2008). The Mbono Concept: East Africa. A regional study for Zambia and<br />
Mozambique. Preseco/Hamk/Finnpartnership.<br />
Pretromoc ( ). Company Profile. Petroleos de Mocambique. Maputo.<br />
Petromoc (2008). Project Development Strategy. Petroleos de Mocambique. Maputo.<br />
Togaat Hulett (2007). Annual Report 2007. South Africa.<br />
UN (2008). Sustainabl Bioenergy: a framework for decision makers.<br />
32
Appendix 1 People and institutions that contributed to information gathering for this study<br />
Name Institution Location and other<br />
observations<br />
Eng. Saide<br />
National Directorate of New and Maputro<br />
Renewable Energies of the Ministry<br />
of Energy<br />
Dr. Anna Locke<br />
CEPAGRI – Centre for Promotion of Maputo<br />
Agriculture<br />
Eng. Salvador Jossias<br />
National Directorate of lands and Maputo<br />
Eng. Oreste Nakala<br />
Eng. Alima Issufo<br />
Forestry<br />
Dr. Afonso Madope Fransfrontier Conservation Areas Maputo<br />
Unit, Ministry of Tourism<br />
Dr. Felício Fernando National Directorate of Maputo<br />
Environmental Impact Assessment<br />
Prof. Dr. Almeida Sitoe<br />
Faculty of Agriculture and Forestry<br />
Engineering of the UEM<br />
Maputo, involved in research of<br />
biomass for biofuels<br />
Prof. Dr. Carlos Lucas Faculty of Engineering of the UEM Maputo, research of processing<br />
technologies for alternative energies<br />
including biofuels<br />
Monica Brancs<br />
SEKAB/Eco-energia – Swedish Maputo but investment area is Cabo<br />
Dr. Kemal Vaz<br />
Company<br />
Delgado<br />
Eng. Roberto Zolho AWF Maputo<br />
Eng. António Limbau<br />
Provincial Director of Agtriculture in Beira<br />
Sofala province<br />
Dr. Augusta<br />
Head of the Provincial Services of Beira<br />
Eng. Elidio<br />
Forestry and Wildlife<br />
Provincial Directorate of Agriculture<br />
in Gaza province<br />
Eulália Atibe<br />
Head of the administrative Post of<br />
Xinavane in Manhiça district<br />
David Technical Assistant/extension<br />
services<br />
Salomao Chauque<br />
Maguiguana Association of Sugar<br />
Geraldo Macuacua<br />
Producers in Xinanave<br />
Eugénio Zaqueu<br />
Jafete Zimba<br />
Francisco Muchave<br />
Pedro Matavele<br />
Virginia Cossa<br />
Francisco Muchave<br />
João chongo<br />
David Cossa<br />
Mandy Macuacua<br />
Joaquim Macome<br />
Members of the Macuvulane<br />
Association of Sugar Producers<br />
Gaza province hosts the first large<br />
scale biotehanol producing company<br />
(PROCANA)<br />
Maputo<br />
Provides support the the sugar cane<br />
Maguiguane Association<br />
Maputo; association already hiring<br />
and paying the technical assistant<br />
(David)<br />
Maputo<br />
Eng. Eugénio Silva PETROMOC Part of the working group on<br />
investments (Interministerial<br />
committee on biofuels); involved in<br />
the experiment of production,<br />
storage, blending and distribution of<br />
biodiesel from coconut<br />
33
Setefani Isautier<br />
Director General of Açucareira de<br />
Marromeu<br />
Eng. Guambe Açucareira de Moçambique,<br />
Mafambisse<br />
Helena Motta<br />
WWF- Mozambique<br />
Rito Mabunda<br />
Telephone interview<br />
Telephone interview<br />
Maputo Office<br />
Appendix 2 Distribution of Petromoc storage facilities in the country<br />
34