Wezi Tjaronda
11 November 2008
Windhoek — A number of local foreign investors have shown interest in undertaking businesses that will utilise Namibia's invader bush.
Companies from Finland and Germany are among the many interested parties that have contacted the directorate of forestry in the Ministry of Agriculture, Water and Forestry for information on investment opportunities.
In May this year, the ministry released a report on studies conducted on biofuel boiler plants of 5, 10 and 20 MW, liquid biofuel, co-firing in power plants at Van Eck, developing a harvesting chain and the social and economic analysis. The report was entitled, "Feasibility study on electricity and pyrolisis oil production from wood chips in Namibia."
The study aimed at determining the technology and economy of utilisation of wood chips for power generation of different sizes of power plants.
Director of Forestry Joseph Hailwa said the response from interested parties was overwhelming especially in energy production. "There are a number of companies interested in coming to invest in the industry," said Hailwa
New Era understands that a Finnish company has contacted the ministry about the possibility of starting a 10 MW electricity generation plant. The company enquired about the cost of purchasing or leasing farmland and other optional investments that could be carried out on the cleared land.
Another company had identified Namibia as one of the potential countries with major investment opportunities in bush utilisation.
Most of the proposals made to the directorate are however in their infant stages, said the director.
Invader bush, which has encroached about 26 million hectares of prime agricultural land, costs the Namibian economy more than N$1 billion per annum (2004 value) in lost beef production.
According to studies, about 100 million tonnes of woody biomass is available for different kinds of uses and as a solution to the problem, and Namibia needs to harvest about 1 million hectares per year assuming that the production cycle of the bushes is 10 years.
The Technical Research Centre of Finland (VTT), which conducted the study, recommended the establishment of a 10 MW biomass power plant in Otjiwarongo where bush encroachment density is high.
New Era also understands that some local companies are using the study to work on ceiling products made out of a mixture of wood chips and cement while another wants to produce gas to fuel vehicles from invader bush.
Hailwa added that the ministry is also engaged in a study that is looking at the possible manufacture of other smaller products from invader bush such as toothpicks and wooden ice cream spoons.
To look at different ways in which invader bush can be managed, the Interim Woodlands Council through the Namibia Agronomic Board has commissioned a cost benefit analysis on an Incentive Scheme for Invader Bush Management.
Due to considerable interest in the utilisation of invader bush to recover the costs of bush harvesting/thinning, establish potentially viable small or medium enterprises (SMEs) in rural Namibia and to diversify the economic opportunities of Namibian farmers, the council felt there was need for a cost benefit analysis (CBA) to look at the benefits of debushing as well as uses of the bush in not only improving livestock farming but also in creating jobs.
The CBA will iidentify appropriate bush encroachment management practices and socio-economic constraints that currently prevent farmers from implementing known mechanisms of bush management or utilisation.
Peter Lenhardt, Manager: Development Projects Division at the Namibian Agronomic Board, said yesterday the consultancy, which signed its contract on October 31, will make assumptions based on the relationship and see which one is viable.
The report, due in February, will be submitted to the Interim Woodlands Council.
Apart from electricity, other invader bush products include fuel wood, wood chips, charcoal, ceiling and furniture.
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