Report: significant growth opportunities in Sub-Saharan African biofuels market
New analysis from Frost & Sullivan finds that Sub-Saharan Africa's nascent biofuels market will earn revenues up to $1.54 billion in 2010 and estimates this to reach $1.82 billion in 2013. The growth potential is dubbed 'spectacular' and the analysis reiterates many of Biopact's points: biofuels can be made efficiently and competitively in Africa, where agro-ecological conditions are highly suitable, government policies are moving in the right direction and the investment climate is improving.
According to the report titled Sub-Saharan African Biofuels Markets the biofuels industry there is entering a period of extended growth. Despite various challenges and obstacles, in-depth understanding of current and future trading conditions will boost the chances of success and early entrants are positioned to make sizeable gains as these markets develop.
At present, biofuels production in Africa is limited. However, successful ethanol production is ongoing in several countries that are all currently finalising their biofuel strategies. A number of companies have already started investing in the biofuels market in Africa and early participants are expected to gain considerable benefit from early market entry:
energy :: sustainability :: ethanol :: biodiesel :: biomass :: bioenergy :: biofuels :: Africa ::
According to the report titled Sub-Saharan African Biofuels Markets the biofuels industry there is entering a period of extended growth. Despite various challenges and obstacles, in-depth understanding of current and future trading conditions will boost the chances of success and early entrants are positioned to make sizeable gains as these markets develop.
The African biofuels market is set for spectacular growth in a market where agricultural land and labour is in abundance and where government support will foster a protective market with guaranteed offset markets. Early market entry coupled with an extensive understanding of overall market dynamics as well as long term feedstock provision agreements will lead to increased market share. - Cornelis van der Waal, Frost & Sullivan Research AnalystDespite several potential hurdles, the probable return on investment will be substantial. While government strategy will have a significant impact on the industry, it will by no means be the only factor that will determine the future of the sector.
At present, biofuels production in Africa is limited. However, successful ethanol production is ongoing in several countries that are all currently finalising their biofuel strategies. A number of companies have already started investing in the biofuels market in Africa and early participants are expected to gain considerable benefit from early market entry:
energy :: sustainability :: ethanol :: biodiesel :: biomass :: bioenergy :: biofuels :: Africa ::
Many acres of jatropha have already been planted, intensive skills programmes are being set up and various international companies are investing in this ‘non-existent’ industry. Early market participants will not only have a significant advantage over future competitors but will also be able to shape the industry in their favour. - Cornelis van der WaalThe current market for biofuels in Africa is very ripe. However, sluggish government policy, fears centred around sustainable feedstock production and a general lack of skills in the African biofuels industry is restraining market expansion. In addition, the severe lack of capital to develop this market is hampering the objectives set under the Kyoto Protocol. Alternative technologies such as fuel cells are also putting a dampener on enthusiasm for investment.
Although the African market as a whole and the South African market in particular hold tremendous potential, the slowness of governments to develop and implement policies is straining development. However, most strategies are expected to be completed by the end of 2007 and this will result in exponential growth and investment opportunities for local and foreign companies. - Cornelis van der WaalThe Sub Saharan African Biofuels Markets is part of the Chemical and Materials Growth Partnership Service, which also includes research in the following markets: European Biofuels - Market and Opportunity Analysis, European Biodiesel and Feedstock Markets, Strategic Analysis of the Asia Pacific Biodiesel Industry and Latin American Biofuels Markets. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
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