Financial Gazette (Harare)
Shame Makoshori
11 October 2007
Harare — THE spectre of diminishing food output and expensive fuel imports that has haunted Zimbabwe for close to a decade has become a spot of bother among policy makers and scientists, who are now scrambling for measures to curtail the catastrophic consequences of the crisis.
Last week oil prices increased to US$80 per barrel, further throwing landlocked Zimbabwe into a complex situation.
Analysts say the increase in international oil prices meant that apart from the growing demand for food imports, the fuel bill would surge, requiring more financial resources for petroleum imports.
But the recent discovery of biofuels could be a silver lining on a dark cloud for the country.
"Biofuels are a very new development worldwide but with the escalation of international fuel prices, biofuels provide a cheaper alternative source of energy," Zimbabwe Academy of Sciences president Christopher Chetsanga told a conference in Harare last week.
The biofuels, Chetsanga said, were not only attracting attention in Zimbabwe, but had recently attracted the attention of policy makers worldwide due to the rapid increase in international oil prices.
Bio-fuels extracted from Ethanol and Jatropha are at the centre of plans by the country to emulate the Malaysian and Cuban examples on fuel production.
"It is important for Zimbabwe to engage in the development of biotechnology energy crops such as Jatropha, soyabeans and sugarcane so that the country can quickly work towards reducing the amount of fuel that it is importing by systematically replacing it with biofuels," said Chetsanga.
"Cuba is already working with a Jatropha variety that can yield 1 500 litres of biodiesel per hectare. This is a good model for Zimbabwe to emulate. As a country, we cannot afford to delay using biotechnology to meet our strategic development needs," he said.
However, energy analysts say Zimbabwe and Cuba are at different stages of economic development.
Zimbabwe, battling a seven-year economic recession characterised by high inflation and foreign currency and fuel shortages, may not afford the costs of new technology for biofuel plants, given the pressing need for food imports to prevent starvation.
Science and Technology Development Minister, Olivia Muchena, said despite lack of resources, government had made an undertaking to allocate at least 0,5 percent of the annual Gross Domestic Product to biotechnology research, development and application. "The challenge is on the private sector to add another 0,5 percent to make it one percent," Muchena said.
Finealt, a government-owned company, has proposed to construct a biodiesel plant, which is expected to produce 300 000 litres per day.
If the Finealt plant finally starts functioning, it would require sufficient raw material stocks.
Government has demonstrated no capacity to develop the Jatropha plantations.
Major focus in the development of biofuels had been on the empowerment of communal and small-scale farmers to produce the seed because the volatile economic environment in the country has discouraged critical offshore capital inflows.
Private investors, analysts said this week, are generally attracted to investment that brings in quick returns.
This is the reason why it could be critical for government to take interest in the development of the Jatropha plantations that the Ministry of Science and Technology Development is spearheading.
Zimbabwe guzzles about 3,5 million litres of fuel per day. For the biofuels to meet this target, production should be on a large scale.
An outgrower programme mooted by the National Oil Company of Zimbabwe to plant 5 000 hactares of Jatropha in every province could be a positive starting point.
And analysts see the success of biofuel projects as a possible catalyst for the creation of downstream industries.
Chetsanga said biofuel production could benefit the economy because the sourcing of energy crops from farmers will benefit the resources-poor rural small-scale farmers.
There is, however, concern that as some energy crops are also food crops, their use in biofuel production may compromise the food needs of the country.
"This concern can be met by using biotechnology derived energy crops with a high biofuels yielding capacity," said Chetsanga.
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