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Session 6.3 Africa’s Need for Regional Bioenergy Markets
 

Session 6.3 Africa’s Need for Regional Bioenergy Markets

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    Session 6.3 Africa’s Need for Regional Bioenergy Markets Session 6.3 Africa’s Need for Regional Bioenergy Markets Presentation Transcript

    •  
    • Africa’s Need for Regional Bioenergy Markets
    • Result: Africa Fails to Develop
    • Less Than 4% is Intra-African Trade
    • Result: Africa Fails to Develop “ Today’s haphazard, overlapping regional integration is proving largely ineffective, and this severely hampers African countries’ ability to compete in international markets.” — Mo Ibrahim
    • Result: Africa Fails to Develop But bioenergy doesn’t have to follow the same path…
    • Benefits of Regional Markets
      • Value addition stays “at home”
      • Creates opportunities for SMEs
      • Increases demand for improved trade infrastructure
      • Reduces demands on foreign exchange
      • Supports regional development
    • Examples of Functioning Regional Initiatives
      • Intra-COMESA trade: $3 billion (2000) to $15 billion (2009)
      • Celtel (Zain)
      • Seacom
        • Increases broadband capacity 50%
      • Serena Hotels
        • Kenya, Tanzania, Uganda, Rwanda (EAC)
        • Mozambique, Pakistan, Afghanistan
      • East African Breweries
        • Tusker, Citizen, White Cap, Bell (and spirits)
    • The Best Idea the World Bank Ever Had?
      • DECEMBER 2005: Former World Bank President Paul Wolfowitz met with Brazilian President Luiz Inácio Lula da Silva
      • “ Brazil has an enormous amount of knowledge and technology related to energy and the environment that Brazil can share with the rest of the world.”— Wolfowitz
      • Specific request to Brazil to transfer biofuel and green energy technology to Africa
      • “ It is obvious to me that the potential for partnerships between the World Bank and Brazil in exporting Brazilian know-how is large and only beginning to be tapped.”—Wolfowitz
    • Economic Community of West African States (ECOWAS) Source: US Energy Information Administration 2007
    • Source: US Energy Information Administration 2007 Economic Community of West African States (ECOWAS)
    • Total Annual Foreign Exchange Savings: US$301 million Source: US Energy Information Administration 2007 Economic Community of West African States (ECOWAS)
    • East African Community Source: US Energy Information Administration 2008
    • East African Community Source: US Energy Information Administration 2008
    • East African Community Total Annual Foreign Exchange Savings: US$334.7 million Source: US Energy Information Administration 2008
    • Southern African Development Community Source: US Energy Information Administration 2008
    • Southern African Development Community Source: US Energy Information Administration 2008
    • Southern African Development Community Without SA: US$444.57 million Total Annual Foreign Exchange Savings: US$1.415 billion Source: US Energy Information Administration 2008
    • UK-Brazil Study on Southern African Biofuels
    • UK-Brazil Study on Southern African Biofuels
      • Double from 700,000 ha to 1.5 million ha in 10-15 yrs
      • Double sugar production for local consumption
      • Produce 7.3 billion litres of ethanol annually
      • Create 300,000 direct jobs & 700,000 indirect
      • Avoid US$1.6 billion in gas imports
      • Receive US$2.9 billion in revenue
      Source: E4Tech (UK)
    • What Needs To Be Done?
      • Strengthen regional markets: Food & Fuel
      • Access and Infrastructure
      • Develop regional policies
        • Blending mandates
        • Feed-in tariffs for renewable sources
      • Mini-grids for rural areas
    • What Needs To Be Done?
      • Develop low-cost technologies using local resources for local needs
      • Invest in agricultural research and extension services to increase productivity/efficiency
    • Thank you for your attention. www.pangealink.org