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(PMS) with ethanol and help cushion fuel price as well as generate up to 7000 jobs 12 . • Beneficial environmental impact through the usage of organic municipal solid waste materials to generating a higher value end-product. The prototype carbon fund (PCF)-supported landfill gas to energy project located in the semi-arid interior of South Africa could reduce emissions related to coal-fired power production which include sulphur oxide, nitrogen oxide and particulates by displacing electricity from the grid. • Reduced level of carbon dioxide emitted by motor engines and then preservation of the quality of the atmosphere. In a recent public symposium organised by United Nations Foundation (2006), it was noted that biofuels could also provide opportunities for poverty reduction and for satisfying the energy needs in rural and remote region, help generate employment and local economic development opportunities; it helps curb global warming and contributes to the protection of human health from air pollution; and, it enhances energy security 13 . This paper analyses the energy geography in Africa, the economics of a biofuel process industry in Africa, and limitations to biofuel commercialisation and conclude by suggesting future courses of action to take to speed up biofuels commercialisation. It is believed that this paper will be of benefit to the energy policy makers (planners) and entrepreneurs not only on the continent but also in other developing countries. 2. Energy Overview in Africa Africa is the second largest continent after Asia making up only 10% of the world’s population, equivalent to about 80% of India’s population. It has a total surface area of 30.3 million km2, including several islands, and an estimated total population of 888 million 14 . Its population density in some regions is rather low. This is due in part to the Sahara Desert, which occupies one-fourth of Africa’s landmass and is not suitable for habitation. In 1999, the population of sub-saharan Africa was estimated to be 642 million, over 80% of the African continent. Poverty in Africa is mainly rural. Africa is not only the poorest region in the world; it was the only major developing region with negative growth in income per capita during 1980–2000 15 . According to the World Development Indicators of 2006, the growth rate of Sub-Saharan Africa (4.8%) improved drastically in 2004 to exceed the global growth rate (4.1%) of that year. However, this improvement does not detract from the fact that Africa remains the poorest continent in the world with one-third of the population starving 16 . The continent remains fragile with perpetual poverty due to several factors. Among the factors identified include deterioration of ecosystems with 25% of dry lands in Africa carrying degraded soils; 10% of soils in the humid parts of Africa being susceptible to deterioration; and the fastgrowing human population. Other factors are poor political and economic management that increases poverty and have resulted in precarious political and economic environments. There is a direct correlation between the poor and the use of traditional biomass where a large proportion of people who live on less than $2 a day use traditional biomass as energy source (Fig. 1). 55 Trade & Industry Monitor Figure 1: The link between poverty and traditional energy use 17 120 Traditional Biomass Consumption as % to Total Energy Use (1997) 100 80 60 40 20 0 0 20 40 60 80 100 120 % Population Living Below $2 a day (1990-2001) Source: UNDP, 2003: IEA, 2000 Commercialisation of biofuel industry in Africa: A review
Environmental policy Figure 2: Renewables share of total energy supply 14 6000 5000 56 4000 Trade & Industry Monitor More 3000 2000 1000 0 Africa Latin America Asia China Non-OCED Europe Share of renewables in total energy supply 279 135 400 243 10 27 3 305 Total primary energy supply 559 464 1224 1426 103 962 446 5395 Former USSR Middle East OECD Africa is an unexploited resource for biofuels development. Although the majority of African nations rely on biomass as a main energy resource, it is inefficiently used and to the detriment of a households’ well being. Fig. 2 shows the share of renewables in the total primary energy supply (Africa renewables share is 50.1% in 2003). Tropical sub-Saharan African population is expected to serve as a prerequisite that will underpin the growth of the continent’s economy in rural areas. The high poverty level in Africa is revealed in the consumption model of modern energy. Per capita consumption of modern energy in African continent is very low when compared to other continent. Out of the total primary energy supply of 514 Mtoe in the continent in 2001, 48.7% which is largely in traditional form is combined renewable and waste 18 . Figure 3: Share of total primary energy supply in Africa in 2001 15 11% 1% 0.1% 0.5% 17% 49% geothermal/solar/wind nuclear comb RE & waste oil coal gas hydro 21%
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TIPS T R A D E & I N D U S T R Y M
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TIPS Executive director: Stephen ha
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trade policy 1 Why OECD countries s
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Table 1: EU and U.S. Examples of Re
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Page 18 and 19: in a multiregional trade model. Des
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Page 32 and 33: OECD data, Gurgel et al. (2006) sho
Page 34 and 35: The credibility of CGE models will
Page 36 and 37: 9th Annual Conference on Global Eco
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Page 40 and 41: 1991-2004 when South Africa’s per
Page 42 and 43: of clothing and textiles 14 . These
Page 44 and 45: will need to be embodied in new wel
Page 46 and 47: Second, the constraints imposed by
Page 48 and 49: Edwards, L. and Lawrence, R. (2006)
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Page 52 and 53: By 2011 around 20% of Brazilian bio
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105 10. Currently, the Monitor is d
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