Mozambique-India partnership: biofuels for poverty alleviation

Speaking at the opening of 'Conclave on India/Africa Project Partnership 2007' in Maputo, Mozambique's Minister of Energy, Salvador Namburete, said Mozambique has become "one of the major African destinations for investment from various parts of the planet."

The country is indeed one of Africa's success stories. After a cruel civil war that lasted nearly two decades (1975-1992), the country organised general elections, took a careful approach to the 'structural adjustment' programs introduced by international institutions like the World Bank and the IMF, and, ensuring political and economic stability, steadily attracted foreign investments. The country's GNI has doubled in the past 5 years, and GDP growth was 7.7% last year (World Bank data).

Investments not only include mega-projects such as the MOZAL aluminium smelter on the outskirts of Maputo, and the Brazilian investment in coal mining in the western province of Tete, but also a 'concerted effort by the government to promote the country's enormous business potential' to 'non-traditional' investors in Asia, including India. Namburete says the government hopes to see further investment in such areas as agriculture, food processing, mining and energy.

Biofuels and poverty alleviation
India is seen as a prime partner in the sector of renewable energy because of its growing expertise.

We would like to see Indian involvement in the field of renewable sources of energy. India has a very advanced experience in this area, in solar energy and in biofuels. Its technology is good, simple and easy to use, and that's what we need to fight against poverty.- Salvador Namburete, Mozambique's Minister of Energy

Namburete will also be present at the EU's high-level meeting on international biofuels trade to be held this Thursday in Brussels, where Mozambique's biofuel potential has been recognized. Biopact was invited to attend this two-day conference and we will be reporting on it from Friday onwards.

Namburete insisted that the Mozambican government remains committed to the promotion of biofuels "with the aim of responding to the national poverty alleviation agenda, as well as providing a response to high, unpredictable and volatile oil prices on the world markets". High oil prices are disastrous for developing countries, with some now spending twice as much on importing petroleum than on health. Among the benefits of biofuels the minister mentioned the fact that "they are labour intensive, and can create agricultural and agro-industrial employment, self-employment and income".

Producing biofuels does not threaten food security in Mozambique, given its vast unused land base. Estimates (map, click to enlarge) by researchers working for the International Energy Agency put the country's explicitly sustainable biofuel potential at around 6.7 to 7 Exajoules per year, with moderate introduction of agricultural technology and using strict sustainability criteria. 6.7EJ is the equivalent of around 3 million barrels of oil per day (earlier post). Namburete pointed out that Mozambique has 36 million hectares of arable land of which only nine per cent is currently in use:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: poverty alleviation :: rural development :: Mozambique ::

Furthermore, a crop like Jatropha curcas, can be grown "on an additional 41.2 million hectares of marginal land, giving people in rural areas the opportunity to generate an income out of land that did not produce anything at all".

Namburete pointed out that it was not enough that Mozambique had natural resources - the government had to take a pro-active role in attracting investment, though a consistent and coherent programme of reforms to ensure macro-economic stability and efficient management in selected priority areas, such as fiscal management, public sector and financial reforms, improving the investment climate and the ongoing reform of the judicial system.

The minister stressed that the government is taking further steps to reduce the cost of doing business in Mozambique through decentralisation, streamlining of licensing procedures, addressing the rigidities in the labour market, and improving basic infrastructure, such as energy, roads and telecommunications.

For his part, the Indian Minister of State for Foreign Affairs, Anand Sharma, said that agriculture was vital for India's cooperation with Mozambique and other members of SADC (Southern African Development Communitry). "We want to cooperate with these countries and help Africa advance and improve its investment climate", he said.

Besides investors from India, several initiatives from Europe, Brazil and China have been launched in the country's biofuels sector (earlier post). Amongst them is a typical South-North-South exchange which sees Italy and Brazil cooperating on biofuels in Mozambique.

References:
Agência de Informação de Moçambique (via AllAfrica): Mozambique: India Now Among Top Ten Investors - July 2, 2007.

Batidzirai, B., A.P.C. Faaij, E.M.W. Smeets (2006), "Biomass and
bioenergy supply from Mozambique" [*abstract / *.pdf], Energy for Sustainable Development, X(1),
Pp. 54-81

Faaij, A.P.C., "Emerging international biomass markets and the potential implications for rural development" [*.pdf], Development and Climate Project Workshop: Rural development, the roles of food, water and biomass; opportunities and challenges; Dakar, Senegal, 14-16 November 2005.