Mozambique Biofuel Report June2008 Bio Fuels Draft

7/28/2019 Mozambique Biofuel Report June2008 Bio Fuels Draft

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MOZAMBIQUE CONSULTANCY REPORT ON BIO-FUEL STUDY

1. INTRODUCTION

African countries have relied on fossil fuels, hydropower and biomass to meet energy demandsfor the urban and rural needs. Concomitantly, the supply of fossil oil has been affected bydynamic economic, environmental, and political and security instability throughout the world.This has lead to the current high and volatile prices that affect the prices of many othercommodities such as agricultural inputs as well as food products. Mozambique is one of thecountries whose citizens rose up and manifested against the ever increasing prices of oil and theeffect on their lives, particularly transport costs and food. Energy is a fundamental engine foreconomic growth and the current inability to sustain the supplies at reasonable price will have ashort and long term impact on the ability of the countries like Mozambique to deliver on itspoverty reduction strategy and achieving the Millennium Development Goals.

The Vision 2025 for Mozambique prioritises the supply of energy and expansion to rural areas asa necessary step towards equitable development and poverty reduction. The PRSP for 2009-2009

(GoM, 2006) highlights the following priorities: transformation of agriculture to increase itscompetitiveness in the international markets as well as the formulation of a national sustainableenergy policy, promotion of investments in dams for production of hydroelectric power andguarantee the sustainable use of natural resources. In addition, the government pledges to increasethe distribution of the network of distribution of liquid fuels including diesel, unleaded petrol,introduce the use of gas for transportation as well as search for alternatives such use of solar,wind and biomass energy to counter the deficit.

Besides fossil fuels, over 70% of the population in Mozambique rely on biomass energy such asfirewood for their domestic needs. For many decades this has impacted negatively on the naturalresources, principally deforestation around the main urban centers of Maputo, Beira andNampula. State led energy plantations of the late 70’s and early 80’s, agroforestry and community

forestry that followed have all failed to provide an alternative (to deforestation of natural forests)due to the intrinsic characteristics of the exotic species, lack of capacity (financial andmanagerial) on the part of the government and, unclear land and tree property rights, which werecrucial for community involvement.

Therefore, Mozambique continues seeking for alternative sources of energy through increasedproduction of hydroelectric power and expansion of the supply network to rural areas, explorationof natural gas, improved efficiency of energy biomass energy utilization, prospecting oil in themajor river basins, particularly Rovuma in the North of the country as well as seeking theintroduction of biofuels. This led the country to start a campaign at high political level tomobilize people to engage in plantation of Jathropha for further processing into biodiesel. Again,the poor planning of this process is reflected on the fact that people were urged to embark on

plantations in most cases of uneconomic units without a strategy for marketing the raw materialor support in training on and establishment of simple processing technologies. Yet Mozambiqueis considered in the UN Framework (2007) as one of the four countries in Africa that has a policyframework for biofuels. As it will be seen later there is definitely a political will to embark onlarge scale production of biofuels, but there is no clear policy and strategy as yet.

Mozambique is considered by analysts as one of the African countries with the largest biofuelproduction potential. Researchers affiliated with the International Energy Agency estimate thatMozambique can produce around 7 Exajoules of biofuels sustainability. The country currently



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consumes around 0.18EJ. Consequently this would lead to full energy independence, withcapacity to spare to supply international markets.The country is under pressure to embark in a grand scale production of biofuels. Ethanol andbiodiesel are two liquid biofuels which can potentially be produced from vegetative materialssuch as respectively sugarcane, cassava and maize and, coconut, cotton, groundnuts and sesame.Besides meeting the demand for energy, the production of biofuels is also credited with havingpotential impact in reducing the emission of green house gases, hence contributing to mitigationof climate change. Further the production of biofuels is believed to have a great potential tocontribute to poverty alleviation in the country.

Amidst this situation, WWF SARPO has commissioning a study to analyse the existing policyand institutional frameworks supporting the production and commercialization of biofuels, thesustainability of supply and markets, distribution of benefits and capacity of various stakeholdersinvolved in the process (WWF SARPO, TOR). Further, questions are raised with regards topotential risks to food security due to competing land use and marginalization of localcommunities particularly with respect to security of land tenure. For example, FAO is alreadyengaging in projects to seek to establish the impacts of biofuels on food security and approaches

to compilation and analysis of biofuels statistics. Information is fundamental aid to decisionmaking besides facilitating the monitoring of the impact of the pursued policy options.

A particular focus of this study was the Zambezi river basin Delta) which supports a large area of wetlands offering good agroecological conditions for growing sugarcane and other biofuel crops.The objectives of the study include: (i) Carrying out a survey of existing bioenergy policies andtechnological capacity in the production process in each site. (ii) Describing levels of production,the drivers of the production (big companies) and status of out grower schemes/ communities ineach site including an analysis of capability, land availability, technology, investment and cropquality as well as potential environmental impacts. (iii) Evaluating the economic and financialpotential for the community/out grower schemes and likely contribution to national strategies onenergy, poverty reduction and likely impact on the environment. (iv) Providing a critical

comment on the economics of biofuels production and marketing as well as proposeimprovements to ameliorate the social and economic benefits of the current and future schemes.(v) Articulating the manner of support that would ensure that this capacity is used effectively.

The report is outlined as follows: a brief presentation of data collection approach followed by asection analysis the socio-economic context as regards energy consumption in the country and theexisting policy and institutional policies as well as gaps. Then an analysis of the variousinitiatives that are being planned or implemented is conducted in the next section. The finalsection draws some conclusions and recommendations.



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2. METHODOLOGY / APPROACH

UN (2007) has developed an analytical framework that highlights various sustainability issues tobe considered in the process of decision making on whether to embark bioenergy production aswell as checking on the impact. The framework includes issues such as the provision of bioenergyfor the poor, implications for agro-industry and employment, the impact on the structure of agriculture and food security, possible impact on health and gender taking into account thatwomen in developing countries are the main producers and users of biomass for energy withconsequent health impacts. The article on IRIN website poses the following important question:‘Africa: food to eat or run a car?’. There is need to determine the trade offs associated withbioenergy and food security to aid an informed decision making on land use, technology andlabur use. Other issues suggested by the framework include the financial support fromgovernments or impact on the budget, implications on trade, foreign exchange balances andenergy security, impacts on biodiversity and natural resources management and on climatechange. However, the broad categories of issues that this framework recommends are: (i) the

existing knowledge on the resources, demand and technologies; (ii) overall policy and ruraldevelopment priorities, land use, environment, industry as well as existing initiatives in researchand development. This study analysed the extent to which the various aspects mentioned in theframework are considered in the ongoing decision making regarding the biofuels.

The study as such consisted of literature review, interview (face-to-face and telephone) of variousindividuals representing various institutions engaged at:

policy development level such as the case of the Ministry of Energy particularly theNational Directorate of New and Renewable Energy, the Centre of Promotion of Agriculture (CEPAGRI), the National Directorate of Lands and Forestry (DINATEF),the National Directorate of Conservation Areas (DNAC) particularly the TransfrontierConservation Areas (TFCA) Unit which oversees the activities in the Great Limpopo

Transfrontier Park, the National Directorates of Environmental Management (DNGA)and Environmental Impact Assessment (DNAIA).

Government institutions facilitating implementation of the policy and legal framework atthe local level in Sofala province including the Provincial Director of Agriculture andthe Head of the Provincial Services of Forestry and Wildlife in Beira and the ProvincialDirectorate of Agriculture in Gaza province. It was also possible to meet the Head of theAdministrative Post (the lowest administrative unit in the country) of Xinavane inManhiça district in Maputo province as well as the technical assistant for the sugar caneassociations of the same administrative unit.

Research institutions such as the Faculties of Agronomy and Forestry and Faculty of Engineering (FAEF) of the Eduardo Mondlane University (UEM) both conductingresearch in areas of bioenergy from the study of ecological aspects associated with

various species as well as the various processing and efficient use technologies. Community conservation and development practitioners such as the African Wildlife

foundation (AWF) supporting one of the affected communities by this (biofuels)initiative and WWF with overall concern on conservation and management of protectedareas in Mozambique.

Interviews were also held or attempted with investors1 such as SEKAB or Eco-energia,and Açucareira de Xinavane (Tongaat Halett) in Maputo, Açucareira de Moçambique inMafambisse in Sofala (outside the Delta) and Açucareira de Marromeu.

1 Unsuccessful attempts to meet PROCANA manager – travel.



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Interviews were also held with two community associations producing sugar cane undercontract agreement with Açucareira de Xinavane in Maputo province.

In total 22 interviews were conducted including a sample of over 30 people (Appendix 1)between 27th April and 9th May 20082. The consultant also attended a seminar on biofuels inMaputo organized by FEMA3, which is a forum of private sector for environmental management.

The TOR limited the study area to wetlands and particularly the Zambezi Delta. Nevertheless, forpractical reasons particularly the relative absence of ongoing activities in the area led to openingthe scope of the study. In fact, the telephone interview with the manager of the Açucareira deMarromeu and local government authorities in the Sofala province established that there wereonly fuzzy plans for production of bioethanol from molasses and bagasse which is currentlyexported. The company manager reiterated that any future involvement of the company inproduction of biofuels would be determined by the approval of the government strategy in thisregard and the initial phase of such production would be directed to internal use by the companyto reduce its current soaring cost of production due to high cost of fuel. Furthermore, themembers of the management board of the Açucareira de Mafambisse were engaged in a two daymeeting, hence only available for a telephone conversation.

Consequently, looking at the ongoing or planned activities to produce biofuels at a larger scaleseemed to be a more rational approach. However, there are obviously trade offs between theability of undertaking a detailed analysis of financial and economic viability of the involvementof small-scale farmers in biofuels production versus a broad understanding of the challenges of withstanding an external pressure to license the biofuels production and, meeting goals onenvironment, eradication of hunger and poverty. These are important millennium developmentgoals that the government subscribes to and strives to deliver on, and implicit the TOR as theyraise the concerns over the livelihoods of the people and environmental sustainability.

The findings of the study are integrated in the discussion of policies to illustrate the interfacebetween the good policy intentions for example regarding land allocation procedures and

participatory natural resources management and practice. The dilemmas and conflicts betweenexisting rights and ‘superior’ rights of investors for biofuel production and other economicactivities highlight some of the inefficiencies in policy implementation.

2 Travel time included, time limitation did not allow meeting with institutions such as Technoserve, GTZ,the World Bank, the Italian Cooperation and consulting companies such as KPMG and Sal e Caldeiras allperceived to interests in the biofuels or contributing in various ways. Although the Açucareira de Xinavane,was visited, the managers were not authorised to discuss the issue and instead recommended to contactTongaat Hallet in South Africa. The information regarding production of biofuels presented in this reportwas found in the website.3 This institution often calls for its members to observe social and environmental corporate responsibility inundertaking of their economic activities.



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3. BIOENERGY PRODUCTION IN MOZAMBIQUE: THE CONTEXT AND POLICY CHALLENGES

3.1 SOCIO-ECONOMIC CONTEXT

Mozambique has a total land cover of 784,089 Km2 and 17,500 Km2 of inland water, althoughabout 40% of the land is somewhat arable, only 10-15% is currently under cultivation andproductive forest covers 51% of the country while 19% has woodlands with miombo and mopane,thickets and forests under shifting cultivation.

The country’s population is 20.5 million of which 63% still lives in rural. The poverty incidenceis 54% and there is a growing tendency towards a more skewed wealth distribution. Thisincreased from 0.40 in 1997 to the current 0.42 and the GDP per capita is still among the lowest(less than USD 500). 78% of labour in the country works in the agricultural sector, whichcontributed 22.6% to the GDP in 2006. The HIV/AIDS menace affects about 16% of thepopulation.

Most of the population in Mozambique consumes biomass energy considered to be an importantfactor in deforestation which is about 0.3% per annum. The draft report of the DINATEF for2007 indicates that last year the licensed exploitation of biomass energy, particularly charcoal andfirewood was around 781,566 bags (generally of 50 Kgs) and nearly 38,000 m3. Both total over6604 thousand m3 of wood. This accounted wood biomass is just a partial reflection of the urbandemand for fuelwood as most of the registered producers supply the urban markets and over 12million m3 more are consumed in the rural areas. The price of charcoal has been increasing overthe years and a bag costs about 14 USD almost while the price of gas is about USD 20 for a 12-15Kg cylinder. The production of gas and electricity only meets the demand of a minority of households and major urban centres. Only just over 80 kWh per capita of electricity is availablehence the widespread use of generators of electricity from diesel in most rural towns. Theproduction capacity of gas is 3 million m3, with production almost reaching the full capacity.

According to the evaluation of the biggest 100 companies in Mozambique in 2006, the energysector is growing, with 18% increase in gas production of which almost 99% is exported, 11%increase electricity and 2% for renewable energies.

Mozambique relies on imported fossil fuels to run its economy. For example, the imports of diesel and petrol reached respectively nearly 124 and 520 thousand m3 (KPMG, 2003). The majormarket players in terms of distribution are led by PETROMOC with 35%, BP Mozambique(30%), Total (14%) with the rest shared by Petrogal, Mobil, Shell, PESS, CALTEX and Engen.The overall consumption of fossil fuels in the country is about 590,000 tons of oil products peryear mostly diesel. From the point of view of (size) market this is considered to be very small.Hence the country’s engagement in biofuels is seen as bringing an opportunity for independenceof the country in terms of capacity to generate energy for internal consumption. In fact,

PETROMOC (2008) states that the local market have the capacity to consume 100 thousand m 3 even at higher blending levels of 15-20%. Additionally, the consumption of fossil fuels comes atan increasingly high price up from less than 40 USD less than five years ago to over USD 130 in2008. These prices affect the performance of the economy as it is one of the major expenses inthe production and service sector. Therefore, it is critical for Mozambique to search foralternative and cheaper sources of energy. However, the excessive production capacity beingsought in the country aims at meeting the needs of the foreign markets. While this may be

4 Cconversion of bags to volume of wood done by the author



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positive in terms of generation of foreign exchange and improve the balance of payments, what isthe opportunity cost?

3.2 THE POLICY AND LEGAL FRAMEWORK: CONTEXT AND GAP BETWEEN INTENTIONS

AND PRACTICE

3..2.1 Energy Policy

The current policy framework includes the 1998 Energy Policy and the 2000 National Strategyfor Energy. The objectives are as follows: ensure supply of energy at low cost; promotereforestation to increase the availability of biomass energy; promote investment in thedevelopment of various sources of energy such as forests, water, and natural gas; promotetechnologies for exploitation of alternative sources of energy such as solar and wind energy. Thestrategy for implementation of such policy objectives include interventions to improveavailability of electricity5 and increase distribution to the rural areas, exploitation of mineral coaland prospecting oil; promote sources of renewable energy products. Although not explicit theproduction of biofuels is a way contemplated in the last objective. However, recently there hasbeen a significant interest of the government and pressure from multinationals to invest in

biofuels. As a result the government had to start a more focused process of reflection anddevelopment of policy and legislation. The Decree No 63/2006 was the first regulatory instrumentto provide some guidance on the import, distribution and commercialization of petrol products aswell as explicit provisions to accommodate the possibility of production of bioenergy in thecountry.

Concomitant to that, the Government of Mozambique has commissioned studies to look at thepotential, viability as well as possible impact and sustainability of biofuels production in thecountry. These studies are to inform the content of the policy and strategy. According toPETROMOC (2008) the aim of the Biofuels strategy includes:

o “reduction of import of liquid fuels; widening the access to energy sources;o job creation opportunities;

o diversification of community livelihood strategies hence being a vehicle for povertyreduction;

o radically changing the agriculture paradigm, including food production, by creating orsharing basic infrastructures, establishing important synergies and enabling otherwisescarce flows of investment into the agribusiness;

o creation of a set of valuable by-products like the co-generation of electricity, productionof organic fertilizers and supply of human and animal feed proteins;

o valuing the enormous and dormant agro-climatic potential of the country;o making good use of the geostrategic location of the country and respective irrigation,

harbour and petroleum infrastructures;o making a significant contribution to the global effort for the mitigation of the

environmental damages;o being part of the vast and ever-growing international biofuels market through its export;o and increasing the overall production capacity of the country.

The biofuels assessment suggests some elements for the strategy and National BiofuelsProgramme (NBP) in Mozambique (Box 1).

5 Law on Electricity approved in 1997 (No 21/1997)



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The suggested areas of focus for the strategy seem to be plausible in particular the need fordiversification of feedstock which is essential in as far as mitigating environmental catastrophes(plagues, diseases, soil degradation) that can be associated with monoculture. Promotion of outgrower schemes or other forms of engagement of the local communities in the productionchain is also a critical aspect for the strategy.

One of the growing criticisms and scepticism of the biofuels is associated with the fear of substitution of crop production to meet food security with supply of raw materials for thisemerging industry. An article on whether Africa should produce food to eat or run the cars isillustrative of that concern. Different opinions being voiced during this study in regards to this,most of which recognize the pertinence of the debate (food or fuel) but criticize the fact thediscussion on the two issues is parallel, led by different institutions, using different fora instead of

having a coherent, integrated and concomitant analysis. Another opinion is that any negativeimpact of biofuels in food production is likely to be temporary. Yet, other opinions deem suchdebate as ‘dishonest’ on the basis that biofuel production will only use a fraction of land availablefor agriculture, therefore without a justifiable need for concern. However, the concern withbiofuels clearly goes beyond the issue of area occupation and it extends to selection of crops,farming systems, participation of local communities, respect for their rights to land and otherresources. For example, maize is staple food in the country, the majority of the population alsoconsume fresh or processed cassava, and the coconut has been used for direct consumption or forproduction of oil. Henceforth, the change of the ‘traditional’ use of any of these crops certainlyshould be accompanied by an analysis of the tradeoffs to facilitate an informed decision making

Box 1: Issues /areas that should be considered in the National Biofuels Programme

Elements to be consideredo Focus on establishment of a domestic market in the short term and create demand for biodiesel and bioethanol

for transportation and industrial purposes. The strategy would be to progressively blend the bio and fossilfuels at relatively short intervals to stimulate the emergence of the necessary production capacity.

o Investigate regional market opportunities, coordinate biofuels provisions, imports specifications of thedifferent SADC countries as well as seek to establish partnerships with large international biofuel exporters.

o Promote a diversity of feedstocks (such as rehabilitation of the coconut plantations, expansion of soy,sunflower, castor seed cultivation, jatropha, research on the African palm incentives for utilization of molassesand bagasses to produce ethanol, promote sweet sorghum and introduce small scale cassava processing) tolimit, for example, the impact of price fluctuations while promoting the agricultural potential of the differentagroecological zones in the country.

o Introduce key policy incentives that include biofuel content for gasoline and diesel respectively starting in2009 and 2012; premium over CIF (cost, insurance and freight) of imported fuels to be paid by blendersallowing sufficient returns for producers and farmers; exemption of tax on fuels for pure biofuels; mechanism

for compensation to limit biofuels price variations; authorization of feedstocks for biofuels; introduce feed-intariffs for electricity cogeneration facilities at biofule plants.

Measure for socio-economic and environmental sustainability:o Guidelines for large-scale monoculture to reserve land for small-scale producers.o Small scale production of less than 3 million liters/year should be exempt from regulatory oversight.o Ensure technical and financial support to rural communities involved in biofuel production.o Utilization of multi-feedstock in particular non edible crops to safeguard food security.o Provide the necessary capacity for the Ministry of Environmental Affairs (MICOA) to conduct an

objective analysis of the impact of biofuels on the environment.o Use land that has never been under cultivation or has laid fallow for long periods (since independence).o The government should monitor the development of standards for certification of biofuels.



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process. Therefore, the recommendations for the strategy (Box 1) establish provisions andincentives to avoid use of edible crops for biofuel production could not be more appropriate.

However, there are also challenges in the materialization and viability of some of the suggestions.For example, the establishment of land that has not been used for as many years as pre-independence does not necessarily mean that there has already been a satisfactory supply of landfor food production. Most farmers in Mozambique cultivate small plots due to the lack of capacity in terms of finances to purchase inputs; there is limited agriculture extension and hencescanty access to improved technologies as well as the poor infrastructure for storage andtransportation of surplus to markets. This means that improvement of the production of smallholders can play an important role in increasing the land productivity but also it may stimulatedemand for expansion of the agricultural land. Furthermore, the current second phase of theagricultural sector investment program (PROAGRI II) also establish the need to provideincentives and support for development of a robust commercial farming sector and developmentof agro-processing industries in the country. This needs a more thorough reflection andprioritisation of zoning (large scale) and conducting a thorough consultative process of stakeholders in particular the communities in the process of land allocation is paramount to

minimizing the conflict in land use. Therefore, the development of the Biofuel Strategy shouldtake this into account.

3.2.2 Land, Forestry and Reforestation

General land use in the country

As previously mentioned Mozambique has 784,089 Km2 and 17,500 Km2 of inland water. About15% of the land is protected to conserve ecosystems and biodiversity. According to the recentnational forest inventory by Marzoli (2007) 70% of the country or about 58.8 million ha iscovered with forests and woodlands. However, forests cover only 40.1 million ha of which almost27 million ha are of productive forests and 13 million are under conservation (forest reserves).

Other sources of information indicate that the country has 36 million ha of arable land which issuitable both for agricultural crops as well as forest plantations. However, currently only 12million ha are under agricultural cultivation meeting only about 80% of food needs while theforest plantations only cover about 24 thousand ha. There also indications that the countrycurrently uses around 4.3 million hectares out of a total of 63.5 million hectares of potentialarable land, or 6.6 per cent (FAO). Additional 41 million hectares of poor quality land areavailable for the production of energy crops that require few inputs and are not suitable for foodproduction. Koetse and Alves (2005/6) indicate that there are about 7 million ha with potential forreforestation distributed as follows: Niassa (2.4 million ha), Zambezia (2.1 million ha), Nampula(1.5 million ha), Manica (860 thousand ha) and Sofala (120 thousand). These statistics give a hinton the actual and potential competition for land resources including agriculture, timber harvesting,livestock, tourism, expansion of urban areas, and supply of land for meeting paper and energy

needs as well as alternative sources of wood products to reduce pressure on natural forests,among others. It is important to note that the Reforestation Strategy aims are silent in relation toproduction of biofuels from crops such as jatropha.

Despite the fact that foreign analysis are quick to observe vast masses of ‘available’ land asquoted in the previous paragraphs the government is taking caution. The allocation of land forbiofuels has been suspended for months now pending the realization and approval of the nationalzoning exercise at scale of 1:1000000 by the Council of Ministers. Four classes of aptitude wereconsidered (high, moderate, marginal and non-apt) for an initial pool of biofuel crops includingsugarcane, sorghum, jatropha and cassava. This was presented for discussion by different



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government bodies last May (2008). The scale used in this zoning exercise is object of controversy (among technical experts) particularly as far as the reliability of its use as a spatialguide on land suitability and availability. Notwithstanding that there is overall concordance thatthis is a necessary first step to support decision making and detailed studies includingconsultation with communities will be pursued by investors in order to establish a de facto availability of land. This is a very critical issue considered that already the land demand isreaching almost 3 million has and also there has to be caution as far as water demand isconcerned.

A brief account of the main legal instruments that needs to be taken into account in the decisionmaking on land allocation for biofuels.

Land, forestry and wildlife policies: provisions and some examples of conflicting allocation and

use of land and challenges of community participation

a) Good provisions

The 2004 Constitution, the Land Policy and Law and all other sectoral policies such as Forestryand Wildlife Policies reaffirm that land and other resources belong to the State. The State has the

prerogative to allocate leasehold rights to private investors for exploitation of resources for aperiod of maximum of 50 years renewable. The communities enjoy quasi perpetual rights to landas the right of occupancy (after 10 years) provides security of tenure and communities canascertain collective rights through the process of delimitation, demarcation and subsequentissuance of a certificate of land use and improvement rights (DUAT). The law also recognizes therelevance of customary law in as far as it does not contravene equitable access to resources as abasic human right equally applicable to men and women and the often marginalized groups. Allthese provisions are safeguards for the rights of the local communities. Currently, there are about300 communities with formal land rights in the country and the 2006 government statisticsindicated that more than 4 million ha from 97 communities (DINATEF, 2006) had been enteredin the national cadastre. The draft DINATEF 2007 report indicate that during the year there werecommunity delimitations in about 1.6 million ha which can lead us to estimate roughly that thus

far there may be nearly 10 million ha under community control.

The forestry and wildlife policy draw significantly on the provisions of the land in recognizingcollective rights and it provides an opportunity for communities to engage in participatory naturalresources management, generate income and manage the resources in a sustainable manner. Thisis in fact a strategy adopted as the social objective of this policy. As a result there are currently 70CBNRM initiatives that have been documented most of which have been accorded the DUAT aswell as having licenses for harvesting resources for income generation. Further, the same policyprovides for benefit sharing between the government and the communities. The latter have 20%of the revenues from royalties. The 2007 draft report of the National Directorate of Lands andForestry indicates that there are more than 1000 communities that reside in areas that theexploitation of forestry and wildlife is taking place hence being potential beneficiaries. However,

the pre-requisites limit access to the funds. Only 306 communities received over USD 804thousand which corresponds to and average of little more than USD 2.6 thousand per community.There has been some debate on why this provision for sharing benefits between the state andcommunities does not extend to other sectors such as the mining, water for generation of electricity, fisheries etc. This issue seems also relevant to ponder about in the context of biofulesproduction and community consultations. Other than threatening the land rights of thecommunities, investments were expected to take development opportunities to the communitiesthrough negotiation of private-community partnerships and fulfillment of the investor’s CorporateSocial Responsibility. If poverty reduction and promotion of rural development are not justpolitical statements, then the National Strategy for Biofuels should provide guidelines on





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The Box 2 highlights of ‘giving’ formal rights and the subsequent ‘process of underminingcommunity rights’. The concept of community land delimitation, the devolution of naturalresources management to community control is being challenged in practice as the interests of theinvestors overlap and in fact override acquired and formalized rights of the community.

It is important to stress that both economic development through large scale investment andpoverty reduction thought security of land resources for the local community are not mutuallyexclusive, but rather complementary. In fact, the process of securing resources rights bycommunities provides an opportunity for them to have a share6 in a business and have tangiblebenefits by the virtue of having resources. The issue however is how consistent and informed is

the government decision making process regarding land allocation and how objective is theresettlement processes in order to minimize the socio-economic disruptions of the affected people.

The conflict between production of biofuels and land allocation for other land uses will alsoextend to forest areas, tourism areas, conservation area, smallholder farming or grazing areas

6 The signed (by community representatives and other authorities) minutes of the community consultation often

highlight some of the concerns that the communities expect to address when endorsing investments.

Box 2 The process of successive rights ‘transfer’ from communities to investors

Community rights and development planThe Limpopo Heartland is one of the areas of intervention of AWF which includes promoting sustainablemanagement of interstitial areas between the protected areas in this case the Limpopo National Park, BanhineNational Park, Zinave National Park, Gonaredzou National Park in Zimbabwe and Krueger National Park inSouth Africa. The communities of this case study are being allocated from the Limpopo National Park asindicated in the map. In some cases the communities had to be resettled to avoid human-wildlife conflicts butalso to minimize land use conflicts such as farming and animal husbandry and wildlife-based tourism activitiesand conservation of biodiversity. Three communities (Cubo) were supported by the AFW to acquire the LandUse Certificate (DUAT) and the communities had already a strategic natural resources management plan(CONTOUR, 2006a) and a business plan (COUNTOUR, 2006b) detailing respectively the measures to beundertaken to harmonize the requirements of different wildlife species, control of soil erosion, water

management etc and a plan of the type of economic initiatives to be implemented for the benefit of thecommunity. The total area for which the land delimitation certificate was issued is over 100 thousand ha. After azoning process 41 thousand ha were identified as suitable for community based tourism activities.

Community rights transferred to game farming companiesParadoxically, after issuing DUAT for communities, three concessions for game farming were authorized andpart of the land under community control transferred. In order to accommodate this change in rights,negotiations were underway to form joint-ventures between the community and private concessionaires. Thebusiness plan includes various scenarios of engagement of three investors with whom the Cubo community wasin a process of negotiating joint ventures.

Community rights transferred for a biofuels producing companyA fourth investor (PROCANA) was allocated 30 thousand ha of land for production of sugar cane for bioethanolof which 20 thousand identified in the zoning process as pasture land were given to this company. As far as the

community pasture land, some interviewees indicated that PROCANA has agreed to provide a limited area forintensive production of pasture and increased carrying capacity to cater for the community needs.

What is left for community management?The community land was subsequently reduced to 10 thousand ha allegedly due its limited capacity to managean extensive area (100 thousand ha).



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among others. The Figure 2 illustrates again a potential conflict between production of biofuels inCabo Delgado and the Quirimbas National Park which is managed by WWF. The distributing of production areas (yellow in the map) is commendable in terms of minimizing conflicts withcommunities and possibly with other uses such forest concessions. However, the location of oneof the areas adjacent to the support/buffer zone of the QNP is likely to cause some conflictsparticularly depending on the specific crops that will be grown in the area, their demand for wateramong other uses. Details about the Eco-energia company will be discussed in section 4.

Fig. 2 Areas earmarked for the production of biofuels by one of the companies requesting150-250000 ha in Cabo Delgado Province

The conflicts in implementation of the forestry and wildlife policy did not start with biofuels.There are numerous examples countrywide. The 2007 annual draft report (DINATEF, 2008)indicates that there have been 76 land conflicts resulting with 76% occurring in the provinces of Tete, Cabo Delgado and Zambezia. The report points out several causes of conflicts among whichthe high demand for land for tourism investments in the coast, poor dissemination of thelegislation to local communities, deficient community consultation processes, dispute overboundaries between communities and investors and non rigorous delimitation of areas (givingmore land than authorized).

However, there are other examples of conflict in decision made by the government and change of right given to local communities for the benefit of private entities. This clearly contravenes thepolicy and the legal framework. Chipanje Chetu Programme in Niassa province is a case in point.It is a CBNRM initiative facilitated by IUCN with support from Ford Foundation, theNetherlands government among other donors and fully backed by the provincial government for6-7 years. In the process the community had acquired land use rights (DUAT), conducted aninventory of resources (timber and non timber), invested in controlling poaching and widespread



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bushfires through training and equipment (e.g. bicycles, uniforms, radios, etc.) of communityscouts, initiated income generating activities and had a partnership with a safari company whichwas already paying annual dividends distributed between the communities, local and provincialgovernment as well as meeting part of the technical support hence moving towards self sufficiency and sustainability. However, since 2004/2005 there was a change, overlap or transferof land rights to the benefit of the Lipilichi Wildness. Again the issue how the policy and law areapplied other than disputing the need to bring investors in they genuinely aim to promotedevelopment. This case also illustrates that it is becoming almost a “tradition” for the governmentto overrule its decisions and undermine the rights of the local community. It may be right to givea benefit of doubt and consider that the transfers are done in ‘good faith’ which is to promoterapid economic growth and creation of rural employment. This is certainly an undisputable andshared common goal. However, the policy provisions seem to create “an illusion of inclusion” forthe communities who in the last instance they easily loose the rights. Monitoring the tradeoffs andthe impact of these decisions is what constitutes a key missing link.

The Reforestation strategy: aim, land availability targets

The Reforestation Strategy yet to be approved acknowledges the area with potential for

plantations but also the existing fragile ecosystems, water basins and dunes for conservation. Itstates its main aim as to establish an integrated industry to contribute to satisfying the increasingdemand for paper in Mozambique and the world over, satisfy demand for timber as well asenergy. This includes not only wood for domestic consumption in the rural and urban areas butalso for curing tobacco, tea and for the ceramic and bakery industries. The strategy targets topromote plantations of large and small scale (by communities or outgrower schemes) to themagnitude of 2 million ha by 2025. It the process about 100 thousand jobs would be generatedand raise almost USD 2 billion for the national economy. Reduction of deforestation of thenatural forests of 20% by 2010 and substitution of 20% the consumption of firewood for the sameperiod and contribute to poverty alleviation are considered to be the main targets of theplantations for energy. One important recommendation of this strategy is that a national zoninghas to be undertaken to clearly identify land suitability. Land use planning and zoning has been

discussed in many occasions and over many years and was strongly recommended particularly inthe PROAGRI II (Natural Resources Management component) as an essential step to informdecision making about land allocation and optimal use. The significance of this recommends isfurther enhanced as it is an important tool for the harmonization of the land use planning andidentification of suitable for biofuels productions and other economic activities. There is clearly acomplementary role between the reforestation strategy and the biofuel strategy underdevelopment, but whether the involved in the process take this aspect into consideration is notclear. A piecemeal land use planning directed to specific activities such as reforestation, zoning of the costal area for tourism purposes, zoning for biofuels is clearly a ‘waste’ of opportunity toundertake a comprehensive land use planning which will cost more but the long term benefits willdefinitely payoff.

3. 3.3 Water, agriculture and the environmentWater

Similarly to land, forestry and wildlife, the water resources belong to the State, which reserves therights to license the use and the margins of the rivers are subject to partial protection as stipulatedin the land legislation.

Water and sanitation is still one of the main challenges that the government has to address andmany rural communities have limited access to clean drinking water. While there are differentwater requirements for different crops used as raw materials for production of biofuels, water



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availability is a critical aspect in the identification of areas suitable for establishing the plantationsand the processing plants.

The Water Law (No 16/91) states that: (i) the available water should be used rationally to meetthe demand by the local population and for economic development; (ii) the use of water foragricultural, industrial and for generation of hydro-electricity has to be regulated; (iii) the watersupply for domestic consumption and sanitation is of utmost importance and priority in relation toany other uses; (iv) the use of water for private purposes in detriment of meeting demands of thelocal population should not be authorized; (v) water for irrigation should be used intensivelymaximizing its value and reduce losses; (vi) the industrial water users should ensure maintenanceof quality, minimize pollution and in case that this happens they should observe the polluter’s payprinciple.

The observation of the rights of the different users of water is of paramount importance in theprocess of decision making on land allocation. The location of PROCANA, for instance, near theMassingir Dam in Gaza and close to the tributary of the Limpopo River is strategic. The aim is tosatisfy the water demand for sugar cane and other feedstock. This phenomenon is common. The

existing and planned sugar producing companies are in areas with easy and abundant access towater. Examples include two sugar companies in the Incomati River in Maputo, the Buzi Riverand Zambezi in Sofala as well as many rivers distributed along the areas that Eco-energia isaiming to use in Cabo Delgado. The interview with the managers of Eco-energia indicated thatthe selection of Cabo Delgado (Figure 2) is related to the availability of water and land besidesthe good climate conditions all of which are conducive for sustainable production of biofuelswithout affecting the biodiversity. The investor maintains that will use degraded lands, will usecrops with limited water requirements (Sweet Sorghum) and use of water efficient irrigationtechniques. However, the company also plans to construct water retention infrastructures such asdams to be used also for generation of electricity. As it will be shown later, the Ministry of Housing and Public Works that host the water directorate is conspicuously absent from the inter-ministerial committee on biofuels.

Agriculture policy

Mozambique is an agricultural based economy and this supplies nearly 100% of ruralemployment. The government of Mozambique places high priority to this sector as a vehicle toaddressing the challenges of food insecurity, malnourishment and poverty. The AgriculturalPolicy has the following four main areas of intervention: (1) food security, (2) sustainableeconomic development, (3) reduction of the unemployment rate, (4) and poverty reduction.

Mozambique has developed the second generation of the Agricultural Sector InvestmentProgramme known as PROAGRI containing strategies and specific intervention areas in thesector to deliver on the policy objectives. Within that context, PROAGRI is part of a broaderperspective to improving agriculture as well as endow the majority of the households, particularly

rural households with the necessary means to pursue the goals of reducing poverty and foodinsecurity (MADER, 2004). Therefore, the objective of PROAGRI II is to contribute to the thesetwo goals through the support of the smallholder and the commercial farmers to increase theagricultural productivity, stimulate the agri-processing industry and commercialization of theproduce. The program also emphasizes the need to ensure sustainable use and management of thenatural resources. While the smallholder farming sector is considered to be rich in diversity of land sizes, crops and final use of the produce, the commercial farming sector was defined as “TheFront Runners for Agricultural Development”. For both categories the major areas of supportinclude markets, provision of financial services, technology, markets and access to naturalresources.



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A major component of the biofuel production comprise of agricultural activities for production of feedstock, hence the potential to contribute or undermine the efforts to expand the commercialfarming sector as well as ensure that high potential land for food crops is actually allocated to thatpurpose.

Environmental policy

The government of Mozambique has defined important tools to ensure that economic activitiesadhere to in order to guarantee the environmental sustainability of their businesses. The DecreeNo 45/2004 substituted the Decree 76/1998 regulates the process of Environmental ImpactAssessment; the Decree 130/2006 regulates public participation in the evaluation of the studiesand monitoring the implementation; the Decree 129/2006 provide general guidelines for the EIAstudies; and, the Decree 32/2003 focus on Environmental Auditing. Therefore, the environmentallegal framework offers a comprehensive set of process and opportunities for adherence toacceptable environmental standards and for monitoring the implementation of the plans of environmental management. However, the limited resources disposable to the governmentconstitute an obstacle for efficient implementation of environmental safeguards.

The Decree 39/2003 for industrial licensing classifies the industries in four categories definedaccording to the level of investment. The micro-industries are defined as those with less thanUSD 25 thousand investment and less than 25 employees while large scale industries have morethan USD 10 million investment and more than 250 employees. The Regulation of the EIA alsodefines categories of investment requiring different levels of detail of analysis of their impacts forenvironmental licensing and monitoring. The categories A and B are expected to result insignificant impact on fragile ecosystems such as protected areas, natural forests, wetlands,investments that may require resettlement of populations, areas with high demand for land andconflict over use and users, areas along rivers and other inland water courses that sustain people’slivelihoods. Therefore, they require detailed EIA studies and monitoring process and thedifference between A and B is simply in the scale of the impact. Agriculture activities under

category A include investments in cropland of more than 350 ha for irrigation and over 1000 hafor rainfed agriculture; conversion of agricultural land, introduction of new or exotic species.Energy related initiatives falling in the same category (A) do not include an explicit reference tobiofuels, however the storage of any liquid fuels is deemed to warrant a comprehensive EIA.Therefore, given the scale of production of biofuels by large companies in terms of area,requirement of water, possible harvesting of natural vegetation and use of agrochemicals, etc. anenvironmental management plan should be developed and strictly monitored.

The investments under Category C are considered to cause negligible or non-existent negativeenvironmental impacts. This may include irrigated agriculture of less than 100 ha or clear-cuttingof natural vegetation in less than 200 ha. Again here in most cases what is crucial to look atcumulative impacts of many, small continuous activities. This is likely to be the case of the

outgrower schemes either for producing sugar, biofuels feedstock or any other activity.

The major concerns of the environmental authorities include the quantity of water likely to beused in the production of biofuels and possible competition with water requirements for food cropproduction and consumption of humans and domestic animals. The discharge of effluents maydamage the quality of soil and water resources hence affecting the aquatic life; the apparentlimited access to information on associated socio-economic and environmental costs and benefitsinfluence negatively the process of consultation of the local communities. In order to have clearguidelines on environmental management, a comprehensive zoning and strategic environmental





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the sustainability criteria with local legislation. The EU standards include the followingprinciples for biofuels production: (i) positive greenhouse gas balance of the production chainand application of biomass; (ii) minimum impact of biomass production on important carbonsinks in both vegetation and soil; (iii) production of biomass should not compromise foodsecurity and other needs such as energy supply, medicines and construction materials; (iv)minimum impact on protected biodiversity and rather strengthen it where possible; (v)maintain or improve the quality of soil in the production and processing of biomass; (vi)minimize the depletion of surface and ground water and maintain/improve water quality; (vii)improve or maintain the air quality in the process of production and processing of biomass;(viii) production of biomass must contribute to improvement of local livelihoods; (ix) ensurecontribution towards the social wellbeing of the employees and local population. Theseprinciples are of interest of both the government and also the private investors in order toensure that the use of resources in the country will result in positive contribution to povertyreduction, economic growth and environmental sustainability.

3.4 THE INSTITUTIONAL ARRANGEMENT FOR PRODUCTION OF BIOFUELS (RESEARCH,

PRODUCERS OF LARGE AND SMALL SCALE, SUPPORT SERVICES, INCENTIVES)

The institutional arrangement is of paramount importance given the complexities of theproduction of biofuels. As discussed in the previous sections many resources are likely to beimpacted on, positively or otherwise. Land, food security, water, environmental impacts of theprocesses of production of raw materials, processing and transportation, creation of employment,disruption of socio-economic cohesion due to need for resettlement of communities amongothers.

There are already existing mechanisms that have been engaging multi-sector stakeholders fromgovernment, from the private sector and NGOs mostly supporting community development andenvironmental management initiatives, some of the important institutions include:

the National Council for Sustainable Development (CONDES) established by the Law20/97 as a consultative organ of the Council of Ministers for coordination and effectiveintegration of environmental considerations in all development activities in the country.Besides providing views on policy matters, the organ was also charged with discussingincentives to stimulate the adherence of the economic agents to the principles andpractices of sustainable management of natural resources and environment in thecountry. The Decree 40/2000 the composition of this organ which include nineministries among which of energy, environmental affairs, public works and housing,agriculture and rural development. The civil society, environmental experts and otherscan be invited to participate in relevant sessions. CONDES is presided by the Prime-Minister.

This is indeed well placed to discuss high policy level issues such as the biofuels policy, strategyand action plan.

The National Council of Water created by the Law 16/91 is charged with among others,the task of informing the Council of Ministers regarding any ‘…critical and recurrentaspects that affect the development and conservation of water resources in the country;detect macroeconomic and macro-institutional factors that affect the development anduse of water resources”. The same law creates the Regional (South, Centre, Zambezi andNorth) Water Administration Authorities which are responsible for approvingconcessions and licenses for water use rights and discharge of effluents, manage water



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allocation and minimize conflicts over use. Furthermore, the Scientific Council of Waterpresided by the Ministry of Science and Technology was established in 2004/5 toprovide leadership in the research and policy analysis of water resources.

With this institutional framework there is a strong basis for coordination, analysis of possiblemacro-scale impacts of water use in the country and advice the government on land allocationand approval of investments on biofuels.

The government has created an inter-ministerial biofuels (technical) group comprising of the energy, agriculture, industry and commerce, science and technology, environment,finance, sustainable development council (CONDES), investment promotion (CEPAGRIand CPI) as well as the oil distribution (PETROMOC) and electricity (EDM) supplycompanies. The existence of this commission and working groups on development of raw materials, sustainability criteria and development models, legal and fiscalframework and project evaluation is essential for coordinating policy developmentissues, research needs as well as overall development potential. However, it will beimportant in the context of the current study to examine the extent to which the concerns

over the involvement of local farmers to ensuring equitable participation and benefitsharing are discussed. FUNAE is a National Fund for Energy which supports projects of alternative sources of

energy such as biogas in Maputo as well as supporting the development and adoption of technologies at local level.

The major gap7 in this institutional arrangement is luck of explicit integration of the NationalWater Council or the National Directorate of Water and key civil society representatives dealingwith conservation of resources, support of local development and also the association of theprivate sector for environmental management. It is important to have such a multi-sectoralinstitution to bring perspectives on costs and benefits as well as perspectives of existing andpotential interested and affected parties.

Civil society organizations concerned with sustainable management of environment andnatural resources as well as monitoring of implementation of macroeconomic policiesand programs such as the poverty reduction strategies are critical to keep a watch ondevelopment of biofuels in the country and its impacts.

o FEMA is a private sector forum for environmental management. It has beenplaying a key role in assisting its membership to adhere to internationalenvironmental standards, to attain the appropriate certification of products, it haspromoted the engagement of the private sector in corporate social responsibilityand brought examples from other parts of the world to demonstrate how thatpays (as profit it is the main driver of the investors), and recently commissioneda study and organized a seminar on biofuels. In the seminar some rather

pertinent issues were raised. For example, the land availability for food andbiofuel crops, analysis of varieties of crops (such as jatropha, sunflower, soy,African palm for biodiesel and cassava and sugarcane for biofuels) adapted tothe different ecological zones and a critical analysis on possible competition forwater resources. There was a strong call for clear definition of targets, analysisof possible competition of labour8 availability for food production, production

7 As far as the field study could establish8 Although there is apparently high level of employment, it is important to consider that in some sites theremay actually be shortage which will require migration of workers from other sites. The Ministry of



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of cash crops such as cotton, tobacco and others and, the labour demand forbiofuel; utilization of the marginal and degraded areas for plantation of biofuelcrops to have a net positive impact in the sequestration of carbon. This forum isalso part of the World Council for Sustainable Development, hence constitute animportant party and partner that the government ought to bring on board on thepolicy discussions.

o G20 is a forum of NGOs working on land rights, local development and otherareas. This forum has been monitoring the implementation of the PRSP in thecountry and can be very instrumental in monitoring the poverty andenvironmental goals in the context of biofuels.

o CBNRM forum, Friends of the Forest and other conservation organizations suchas IUCN and WWF have been playing a key role in the processes of formulationand implementation of policies for engagement of communities in naturalresources management and also in the establishment and management of protected areas (fragile ecosystems such as wetlands and overall conservation of biodiversity).

The civil society is a very important partner who actually contributes significantly to the deliveryof the policies at local level. Therefore, it should participate in the development of the biofuelpolicy and strategy as it can also bring field level concerns as well as playing a role ininformation dissemination and monitor the impacts on the ground.

Training and research institutions particularly the Eduardo Mondlane University play akey role in the generation of knowledge. Some of the research gaps include the overall(realistic) trends in consumption of biomass energy and fossil fuels in the country andalternative energies, analysis of land use cover change, technologies for improvedefficiency of use of biomass. The university has started to work studies related to biofuelproduction in the country. Currently, the Faculty of Agronomy and Forestry Engineeringis engaged in various aspects of research such as the case of pests and diseases

associated with jathropha which can affect other species of the genera Euphorbiacea.The Faculty is collaborating with Wageninger University in a one year regional researchinitiative to analyse the interaction between production of biomass and change in use andland cover as well as the economic impacts. Another initiative, involving the abovementioned institutions and the University of Viçosa in Brasil, is a four year research todevelop production and processing models as well as scenarios of socio-economic andenvironmental implications. The Faculty of Engineering, Chemistry Department hoststhe President of the Scientific Council of Energy who is part of a working group that isto undertake studies in the different provinces. This Faculty is primarily responsible forthe industrial component of biofuels production, mostly research on technologies forsmall scale production (gasification of carcasses of coconut, water from wood andcashew nut processing; biogas, improved stoves for utilization of biomass energy, etc.).

The Faculty of Engineering has also engaged in collaborative research with theUniversity of Dar es Salam in a SAREC supported programme. In addition, a high leveltraining programme to build capacity on research of various technologies for productionof alternative fuels is being implemented. The International Institute of TropicalAgriculture is also working with the Mozambique Institute of Agriculture Research(IIAM) on the improvement of cassava for production of biofuels.

Planning and development is also conducting a study using a General Equilibrium Model to establish theimpact of biofuels in food crop production including an analysis of the marginal productivity of labour.





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4. BIOFUEL PRODUCTION INITIATIVES IN THE COUNTRY: BUSINESS FOR LARGE AND / OR

SMALL SCALE PRODUCERS?

4.1 COMPANIES WITH BIOFUELS AS THEIR MAIN BUSINESS

Since the government campaign for introduction of Jatropha in the country, many investorslargely from Europe have flocked the country to prospect opportunities for production of bioenergy including biodiesel and bioethanol. Currently the official information indicate thatthere are more than 152 thousand ha corresponding to 9 companies in the provinces of Maputo,Gaza, Inhambane, in the South and Manica and Sofala in the centre of Mozambique. Theseinvestmentsin the processing phase comprise of 38% of the area for production of Jatropha (for biodiesel) and62% for sugar cane (for bioethanol). The manifestations of intention to invest reach about 2.7million ha (Albino, 2008) by 28 companies of medium and large scale. Some of the investments

have been approved by the Centre for Promotion of Investment (CPI) but are pending approval onland allocation due to the need for zoning or the land allocated has been significantly reduced.There are various aspects being observed in the demand for land for biofuels. For example, thereare requests of land use change from production of tobacco or cotton, or request of productiveland for agriculture to plant Jatropha which is deemed to be appropriate for agriculture marginalareas, request of large areas which include infrastructure such as schools and clinics.

PROCANA

According to Biopact web site “Pro-Cana is a private company with British interests set to investUS$510/€375 million for the construction of a plant for the production ethanol, sugar, electricityand fertilizers in the district of Massingir, in Mozambique's southern province of

Gaza.“ Although the initial intent was to produce around 600 thousand m3

of bioetanol, the rawmaterial is estimated to be sufficient to produce of only a third of that output. This initiative isalso of interest for this study as it shows a clear land use conflict as well as underminingcommunity rights to land as earlier discussed. The Box 1 shows the expectations or potentialbenefits of production of biofuels in Gaza province by PROCANA.

Box 4 Background on the company (PROCANA) and envisaged benefits (source: Biopact web site)

o Procana is the first to build a large integrated fuel-food-fertilizer plant in Africao Company owns an ethanol plant in Brazil.o Gaza province is expected to be able to support the production of around 220 Petajoules of biomass energy

in a sustainable manner (i.e. without deforestation and without impacting local food, firewood, fodder and

fibre supplies);o Besides biofuels and sugar, the new plant will generate electricity from bagasse, a byproduct of sugarcane.

This would enable to decrease the consumption of power generated at the Cahora Bassa Dam, which couldeventually be exported to other countries in the region such as Zimbabwe, South Africa, Swaziland, Malawiand Botswana.

o The project in Massingir (Gaza province) involves the establishment of 30,000 hectares of sugar cane,besides other infrastructures that will benefit the local communities.

o Employment creation – Procana expected to generate in its first stage at least 7,000 new jobs for the peopleof Massingir and surrounding areas, and "therefore it is welcome, as it will contribute largely in the fightagainst poverty in Mozambique".

“It is beyond any doubt that production of ethanol is one of best opportunities for the country. [...] We want to

diversify our economy because we don't want [...] to depend on just four major products of export. We would like to

contribute with some other products, such as alcohol. We can also contribute with the export of electricity, as the

sugar mill could also generate electrical power and sell it to the domestic market. - Mozambique's AgrarianPromotion Centre spokeperson.”



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SEKAK or Eco-energia

Eco-energia or SEKAB is one of the prospective large companies for production of biofuels bothin terms of area (1209-150 000 ha) and the scale of the processing (3 to 6 units) as well as themarket. 85% of the production will be exported to Scandinavian countries and negotiating aMemorandum of Understanding (MOU) with the Ministry of Energy to supply the domesticmarket through PETROMOC. This company represents a Swedish company with long traditionin production of ethanol a process that has started in the early XIX century (1909). They intend tocarry out production in non-contiguous areas covering seven districts in the province (Figure 2).The company has been undertaking extensive studies in the area: socio-economic, ecology andenvironment, soils, infrastructure development such as dams and reservoirs for water andgeneration of electricity.

4.2 SUGAR PRODUCTION COMPANIES: PRODUCT DIVERSIFICATION AND EXPLORATION OFEMERGING MARKETS

The increase in demand for production of bioethanol and traditionally sugar producing companiesare also planning to or already exploring this new opportunity. According to Biopact web site“Currently, the Mozambican authorities are in the process of expanding the sugar industry inMozambique to diversify the country's economy. In 2006, the Mozambican sugar industryachieved the highest production of the last 30 years, by producing 300.000 tons in the existingfour plants currently operating in the country, namely Marromeu and Mafambisse, in the centralprovince of Sofala and, Maragra and Xinavane, in the southern province of Maputo”. Further theMinistries of Energy, Trade and Agriculture are engaged in discussions and coordination forproduction of biofuels particularly ethanol and to explore the potential for producing electricity.

The next section gives some details on what is happening as far as ‘biofuels movement’ isconcerned.

4.2.1 Production of biofuels: are there any prospects in the Zambezi Delta?

According to the provincial authorities of agriculture and forestry in Sofala there are manymanifestations 10 of interests by investors to produce biofuels in the province. However, theyreiterated the importance of the conclusion of the zoning exercise and its approval by the Councilof Ministers to ensure that allocation of land is only in the marginal (in terms of soil and alsorainfall) areas for food crop production. However, the authorities are also wary of the fact thatcassava is an important crop in the diet of the population and one of the crops that withstand poorsoil and limited water. This conflicts clearly with the areas that are deemed adequate for Jatropha.

This crop is also known to be a host of a virus (mosaico) that attacks cassava and that certainlyholds a potential negative impact on food crop production.

9 Planned maximum transportation distance of 30 km to the ethanol processing plant to minimize transportcosts and ensure efficient supply of raw material10 Dono district (Elaion -1000 ha already being explored for jatropha and cassava), Cheringoma (Mozambaand Gruja) – 20 000 ha for Enerterra and 10 000 ha for Niquel Lta already approved, Envirotrade isworking with communities in carbon projects and is conducting a trial of mixed cropping of jatropha withfood crops in Nhambita.





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320 thousand tons in 2010 corresponding to additional 2555 ha of land. Other sources of information indicate that the Açucareira de Xinavane has currently 5 474 ha of land of which 500ha are cultivated by smallholder farmers and 1500 ha by a private company supplying sugar caneto the company. The additional area cover 5800 ha of which only 5300 ha actually be planted.The additional area is transacted from a former cattle farm which has been lying idle11 since theadvent of the war.

On the one hand, the increase in production is driven by increased attractiveness of the marketsuch as the doubling of EU imports to 3.5 million tons per year once the new economicpartnership agreements enter into force from late 2009. However, the company alsoacknowledges the opportunities offered by the emerging need in Southern Africa for increasedrealization of bagasse, molasses and other sugar cane biomass for generation of electricity andbio-ethanol production. The free access to EU market is a particular attraction for the company toproduce biofuels from Mozambique and the Xinavane expansion is particularly to capitalize onthat opportunity. The same source indicates that the potential generation of 660 MW of electricitycould result in a positive environmental impact. It would mean saving 2 million tons of coalannually and reduce CO2 emissions by 2.25 million tons. However, there is an increasing concern

over the use of food crops such as maize for production of biofuels. In fact, the high prices of thiscereal over the last three years have also been driven by its use for biofuels production. Forexample, safeguarding for food security the government of South Africa despite approving abiofuels industrial strategy in December 2007 which targets an initial use of 2% (or 400 millionlitters per annum) over the next five years, it has explicitly excluded the use of maize as rawmaterial for biofuels (Tongaat Hulett, 2007).

4.3 BLENDING, STORAGE AND DISTRIBUTION TO LOCAL AND EXTERNAL MARKETS

PETROMOC is a public limited liability company with the State controlling 80% of its shares. Ithas the largest network of distribution of oil products with 119 filling stations and 118 local

consumers; it has warehouses and pipelines (Appendix 2). Its storage capacity is about 500 000m3, with annual sales of about 333 thousand m3 for the domestic market with 34% participationand 93 thousand for foreign markets. Besides supplying the major industrial and commercialsectors in Mozambique also supplies fuels to Zimbabwe, Zambia, Malawi and DemocraticRepublic of Congo. The company is equally involved in the search for alternative sources of energy such as biofuels. The motivation is to reduce the current oil shock. Such engagement isconsidered to provide socio-economic benefits for all participants in the production chain,reduction of greenhouse gas emissions, progressive replacement of imports of fossil fuels andincreased export of biofuels as well as contribute to what is considered ‘indisputable perfectvector against poverty and promotion of the Made in Mozambique products’. Therefore, thecompany sees itself as a key player particularly as regards the logistics of biofuels (PETROMOC,undated).

PETROMOC (2008) presents its development strategy which prioritizes biofuels to mitigate theexpenditure on the import of fossil fuels which has increased in a five year period from USD 45million to USD 600 million, promote economic development and contribute to environmentalsustainability. The company is involved in various partnerships to develop additional combinedstorage facilities to over 2 million m3. The company is part of a multi-sector task force set up bythe government following the 2005 national workshop on biofules. The task force is charged with

11 Part of the area was under cultivation by local farmers. They were asked to vacate the land after harvesting theircrops



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collecting and collating information for the preparation of the National Biofuels Strategy.PETROMOC is the ‘operational vehicle for the overall Government strategy on biofuels’. Thecorporation has partnerships with various companies aiming to produce bio-diesel from cropssuch as Jatropha curcas, Trichilia emetica and it is also forming partnerships to carry outresearch and development of a hybrid of sweet sorghum and local varieties. However, substantialpartnerships include seven companies which are likely to occupy a total of 300 out of 548 12 thousand ha of biofuel projects in the provinces of Maputo (Xinavane), Gaza (Massingir), Sofala(Buzi and Caia), Cabo Delgado (the largest initiative of 150 000 ha in clusters distributed in thedistricts of Ancuabe, Balama, Chiure, Montepuez and Namuno). The combined productioncapacity of ethanol of these companies is in excess of 1 million m3 per annum (i.e, 10 times morethan the domestic market can currently consume). These initiatives involve large amounts of investment. For example, three of the companies (in Massingir, Buzi) are claiming to invest overUSD 1.158 billion. The role of PETROMOC in the various partnerships includes progressiveblending with respective fossil fuels, transportation, handling, storage and distribution of biofuelsin the domestic markets.

PETROMOC is also a shareholder in the Ecomoz (Renewable Alternative Energies Ltd)

company which has a biodiesel plant with capacity for producing 40 000 m

3

/annum. Thecompany is already producing biodiesel from coconut oil supplied from Inhambane province.Almost a year after starting production, the plant is already facing shortage of raw material(PETROMOC, 2008). It should be noted that the coconut has traditionally been processed intocopra for production of soap and cooking oil and coconut milk which is an important ingredientof the coastal cuisine. Therefore, a steady supply of coconut to this new industry would requireexpansion of the plantations or deviation of the habitual use for biofuels. This is likely to competeand impact on the local consumption, raising again the question whether the crops should be forrunning cars or feeding people. The strategy of Ecomoz is to offset this is to engage in thedevelopment of projects for production of oil baring crops, stimulate participation of the ruralcommunities in production and commercialization of vegetable oil and imports of vegetable oil.The latter option brings challenges as regards the prices and competitiveness of the final product

to the local and international markets.

The examples here presented show the scale of production that is being envisaged, particularly inas far as land demand is concerned and proportionally this is likely to have significant impact onthe land tenure security for the rural communities. Further, water demand for irrigation of largescale production of crops for biofuels needs attention in order to establish the potential impact onagriculture production.

4.4 WHERE DO OUTGROWER AND SOCIAL BENEFITS FEATURE IN ALL THIS?

One of the main objectives of this study was to look at the level of involvement of the small

growers and how integrated they are in the biofuel production chain including micro-initiativesthat they could run on their own. Therefore, evaluating economic and financial potential and therole of community participation on energy strategies, poverty reduction and impact on theenvironment was considered to be an important aspect to shed a light on. However, from the fieldstudy it was only possible to have some general information on the small scale activities beingundertaken in different parts of the country for the production of biofuels. Some initiativesmentioned include: (i) the South African farmers that settled in Niassa province introduced the

12 All statistics in this paragraph are author’s estimations based on information presented in Petromoc(2008).



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production of vegetable oil for running the farm machinery and cars; (ii) in Manica there areplantations of jatropha and coconut for producing biodiesel at small scale used for runing thefarm equipment; (iii) in Tete, Nampula, Gaza, Sofala (in the Gorongoza region) and Inhambaneare other provinces engaged in the production of jatropha at small and medium scale; (iii) thePETROMOC initiative of production of biodiesel from coconut has been relying on two majorareas of supply which are Inhambane and Zambézia provinces. These two provinces have beentraditionally centres of large areas of production mainly owned by small holders in a programmethat has been well integrated with copra processing. However, the crop has been for the pastdecade affected by a disease that is decimating many trees or reducing significantly theirproductivity. The biodisel initiative was started gain without a proper integration with theproduction of raw materials to ensure quantity, quality and competitiveness in relation to otheruses of the same crop.

As mentioned earlier the local people were the main target of the initial wave of biofuelproduction when massive political campaigns were undertaken by top level political entities.They mobilized the engagement of smallholders in jatropha production. Jootse (2003) illustratedthe potential benefits of jatropha (control of soil erosion, oil – lubricant, soap production,

biodiesel, etc. - hedges, medicinal, honey, etc.) and recommended that there be a centralprocessing facility for farmers to deliver the seen and enumerated a set of socio-economicbenefits of the same. However, luck of clear strategy in the development of local capacity forproduction and introduction of simple technology for processing and marketing of jatropha arebehind the desolation of the farmers today: anecdotic evidence shows that communities in somedistricts have been so frustrated by the bumper seed crop that they harvested and took it to thelocal administrations.

It is important for the authorities and all involved in facilitating the production of biofuels atsmall scale to undertake a thorough investigation of the potential and costs and benefits atmedium and long term. It would be interesting for this study to have been able to bring suchinformation; however the scope and time allocation could not permit a detailed application of an

analysis of financial and economic viability of production of biofuels at small scale. Nevertheless,the Boxes 5 and 6 provide two examples of associations of sugarcane producers located in theDistrict of Manhiça (Xinavane) who are involved in the supply of raw material to the sugarcompany. One important aspect to note is that despite the fact that the company is planning toproduce biofuels, these farmers were not aware (May 2008). One of the groups however, hasquestioned the company regarding the need to add value on the price of sugar cane consideringthat this produces sugar as well as molasses and bagasse which is used for generating energy,hence with a market value. There was no clear indication on whether the company was to pay ahigher value for the produce. The market arrangement is such that there is dependence of theassociation in relation to the sole buyer reducing their bargaining power. However, there isindication that farmers are already aware of the value of the crop and certainly the diversificationof production should also reward the farmers.

Both associations are formally registered as such following the law of association whichestablishes the structures such a director, treasurer, assembly among others to ensure formal andtransparent operations. The involvement of smallholders in the production of biofuels feedstock islikely to yield benefits in combating hunger and poverty. However, different scenarios need to beanalysed as regards the size of land holdings (e.g. 3, 5, 10); the family labour structure,possibilities and implication of labour hiring in engagement of more commercial and higherreturn endeavours, source of financial support among others. In addition, the cumulativeenvironmental impact would have to be analysed more closely. This could only be done with aspecific focus on the smallholders from a selection of sites and for different crops.



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The EU is also exploring the possibilities of supporting the creation of an association of about200 members to produce sugarcane to supply one of biomass for biofures in Sabie, which is alongthe Incomati river basin that supplies water to the Acucareira de Xinavane and Maragra. Thisoffers an opportunity to identify a sample of involved farmers and conduct a more detailedviability study.

Box 5 Experience of Maguiguane Association of sugar cane producers in Xinavane

The association was established in 1999/2000, it has 66 members and a total area of 84 ha; eachmember has an individual plot and they all produce collectively in 6 ha for meeting the costs of runningthe association including the payment of the technical assistance, water, irrigation equipment,agricultural inputs, running costs of the office among others. They have had a contract with theAçucareira de Xinavane for 9 years now and the duration is undetermined. The contract establishes thatthe company facilitates the acquisition of all farm inputs and equipments and farm equipment, once theproduce is harvested the company keeps up to 30% of the association’s revenue to meet the costs of theservices rendered to them. In 2007 they produced 7218 tones of sugar cane. In 2006 each memberreceived 23 million Mt which is equivalent to about (USD 950) or about USD 805/ha after deduction of all costs. In 2007 the revenue increased to 33 million Mt or USD 1375 per member and this is expectedto be around 1600 by the end of the current harvesting season. The members of the Board of Directors(7 people) have an additional income of USD 750 per year given as subsidies for the time spent dealing

with association matters. The association also has invested in a chicken farm, opened a boreholesupplying potable water to the community in the vicinity. Other benefits include contribution to localfestivities, funerals but above all the houses of members of the association have been improved (use of conventional materials), 30% of which have electricity, they have invested in cattle and kilns forproduction of bricks and pottery.

Box 6 Experience of the Macuvulane Association of sugar cane producers in Xinavane

This association started in 1964 as an association for production of cereals and cotton. However, theactivities were discontinued during the 16 civil war which ended in 1992. The community was also

affected by the floods of 2000 which inundated the area. The soil continues saturated and it does nolonger produce cereals. The sugar cane was, therefore, an alternative activity. The association of sugarcane producers started in 2005 and it is in the third harvesting season. The association is comprised of 186 members and covers about 184 ha and around 15 ha that belongs to all members and they cultivatecollectively. In the last harvesting season the produce reached more than 24,6 thousand tons or about131 ton/ha. Each member received an average of 45.4 million Mt equivalents to USD 1892. Themembers of the Board of Directors receive additional USD 1200 per year. The association does not asyet have a formal contract with the sugar company although this provides technical support and allother inputs and equipment. Up on harvesting the company keeps 45% of the revenue to cater for the allthe costs of production. The association is also funding some of the inputs/equipments using creditgiven by a local development bank. This association has enquired about the prospects for sharingrevenue generated from the sugar production by products: molasses and bagasse.



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5. CONCLUSIONS AND RECOMMENDATIONS OF THE STUDY

This UN framework highlights some of the critical aspects that the governments ought to considerbefore embarking in large scale production of biofuels. The Mozambique government certainlystarted the process in rather an add hoc manner with a populist mobilization of communities toplant Jatropha curcas for biodiesel, and recently allocated an area for production of sugarcane forbioethanol. This is changed and various aspects contained in the framework such as developmentof policies that safeguard the interests of sustainable development and generation of knowledgeare currently happening in the country. The government acknowledged the complexity andcontroversies surrounding this area of investment that it has decided to exercise caution. Theactions taken include:

o the assessment of potential for producing biofuels in Mozambique which was supportedby the World Bank and the Italian governments;

o

the establishment of the inter-ministerial task force and working groups to coordinateand support decision making and establishing a conducive policy environment throughdevelopment of a biofuels policy, strategy and plan;

o the adjournment of the allocation of land until the nation zoning (albeit at small scale 1:1 000 000) is completed and approved by the Council of Ministers.

o The testing of blending of bio and fossil fuels by PETROMOC where the State is amajor shareholder is also an important step to establishing the technological andlogistical capacity to serve the national and the regional market supplied oil through thiscompany.

These are certainly positive steps and important preserves for ensuring informed decision making.However, there is room for improvement: harmonization of sectoral policies, institutional

coordination, organized debate on critical issues (e.g. land for food or fuel), and commitment todelivering on existing policies. For example, this study highlighted the set of existing policies thatconstitute a platform for the formulation and implementation of the policy and strategy onbioenergy production in the country. The discussion of the policy content and some practicalexperiences in the field has shown some serious disconnections, particularly in relation to theprotection of legal community rights. The successive dispossession and transfer of formal rightsfrom communities to investors denounce a gross or deliberate misunderstanding of the spirit thatguided the establishment of such legal provisions in the face place. This has a short term impactwith long term consequences on the livelihoods of the people that are apparently a target of government macroeconomic policies. The consultation of the communities and formation of partnerships would bring communities and the private sector as shareholders with the communitycontributing land and labour while the private sector would bring the technological know how

and the investment capacity. Addressing hunger and poverty should not be seen as mutuallyexclusive with promotion of growth. Concomitant interventions are necessary and mutuallybeneficial partnerships can deliver on both more efficiently than investing in conflict management.

The country is still in a process of establishing the technological capacity for production of biofuels, as it was shown there is only one large scale investment approved and establishing theproduction of raw material and a processing plant (PROCANA), the initiatives by sugarproducing companies are yet to produce results. The prospective investors from Europe, Braziland Scandinavian countries do bring technology that has been tested and it is producing results.However, the adaptation to the context of Mozambique (socio-economic, infrastructure,



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institutional arrangement, etc.) will be determinant to yielding meaningful economic benefits forthe country and positive environmental impacts. PETROMOC is leading the technologydevelopment having installed a plant for production of biodiesel and has been testing the marketfor that. The Eduardo Mondlane University and other international research institutions are alsoengaged in research of technologies that can be used at small scale level and hopefully contributeto improving the crop production techniques (e.g. running equipment with biodiesel) and increasefood production. Lessons from introduction of jatropha demonstrate that there is need forintegrating production, processing and market for smallholder production to minimize theopportunity cost of labour, land and lessen the possibility of driving the farmers to furtherimpoverishment.

Currently the main drivers of biofuels production in Mozambique are the external markets,particularly European. The domestic consumption is small to justify the demand for land and thelevel of investment in processing. However, this can also stimulate the growth of the market andthe agricultural sector, particularly production of food crops for local consumption and eventuallyexport require low cost fuels.

In terms of the current land demand, it reaches almost 3 million ha, but only about 150 000 haconstitute projects either approved or under consideration. The general perception is thatMozambique has plenty of unused land which would be available for biofuel crops. However, theabsence of land inventory and zoning, lack of harmonization of various demands for land poses abig challenge in establishing what is actually empty and degraded land, how to share and ensureequitable access to water resources for human consumption and economic activities such asbiofuels production.

The levels of production are not clear as yet. However, there is indication that only the currentpartnerships that PETROMOC is establishing require a storage capacity of about 2 million m3.Therefore, it can be roughly estimated that if the projects in pipeline are approved the capacitymay double with domestic consumption of 2.5 to maybe 5%.

The potential for involvement of outgrower schemes is enormous but the strategy is yet to bedeveloped. This study used the associations of sugar cane producers to analyse the current andpotential gains from such engagement. The financial and economic benefits can be realized, butthere is need for a more focused analysis considering the land and labour availability that wouldbe required for investing in a viable enterprise. It is clear that the people who are currentlyengaged in the production of sugar cane have transposed the poverty line threshold and they areinvesting in improving their livelihoods and even providing services to wider community such aswater. The support systems have to be well integrated in the bioenergy strategy and action plan.From the economic point of view the market arrangement of monopsony (many producers andone large buyer) is problematic in the sense of reducing the power of the seller (communityassociations) to negotiate favourable terms of sale contract.

The environmental gains claimed such as reduction of green house gases associated with biofuelsneed to be looked more closely. The environmental impact assessment and monitoring are key toestablishing the levels of soil degradation, water contamination and other forms of pollutionversus the environmental benefits of biofuels. The existing environmental policy framework inMozambique is sufficient for such analysis to be undertaken. However, the capacity to monitorimplementation of mitigation measures need strengthening.

The current institutional framework seems to focus on high level policy and technical institutionsmainly drawn from government. Even at that level, the absence of key sectors such as the water



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sector from the technical committee seems to be an oversight that needs to be addressed. The civilsociety is a partner that can support the policy development process which does not seem toengage with local level government authorities and less so with the communities. There has to bea link between the macro-aspirations and the concerns of the local people who in the last instancewill be affected by those policies. During this study there was no obvious concern andengagement of all levels in this process.

The main recommendations of the study include:(i) a review of the current institutional (Box 3) set up at technical and political level to address thebiofuels;(ii) support to ensure that the development of biofuels production are guided by the existinglegislation on land, forestry, wildlife, water and environment to avoid conflicts;(iii) the Ministry of Agriculture should lead the discussion on the land policy particularly asregards the protection of community rights, the size of land that communities can secure rightsover and the type of negotiating rights and obligation associated with that. This go beyond theinvestments on biofuels: the devolution of resources rights to local communities need to becritically looked at, dissemination to local authorities needs to be secured given the current

dynamics of institutional representation. The civil society has an important role to play.(iv) CONDES as a cross sectoral policy body should steer the development of Land Use PlanningPolicy, Land Use Planning and Integrated Zoning taking into account the law on territoryplanning. The add hoc zonings are useful at micro-level, however they need to be guided by amore comprehensive analysis of land capacity and best use;(v) the ministries of agriculture and environment should lead the development of a StrategicEnvironmental Assessment of the National Biofuels Strategy to offer the Ministry of Energy, theMinistry of Industry and Commerce, the Centres for Investment Promotion a guide or checklist of issues that need to be addressed by investments in this sector;(vi) conduct a detailed analysis of financial and economic viability of smallscale production of biofuels and support needed (technical, financial and institutional) in targeted areas were biofuelinvestments are taking place.



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6. BIBLIOGRAPHY

AIM (2007). Mozambique: British Company to invest US$510 million in sugar and ethanol plant.AllAfrica.com web page.

Bioenergy Pact between Europe and Africa. Website.

Carlos, Serra (2007). Colectânea de Legislação do Ambiente. Centro de Formação Juridico eJudiciária. Ministério da Justiça. Maputo.

CEPALAGA (2007) Estudo de Impacto Ambiental da Fábrica de Açúcar da Açucareira deMoçambique, SARL. Beira.

CEPLAGA (2006). Estudo do impacto Ambiental para o projecto de Propriedade de Cana deAçúcar de Muda-Chidassicua - Açucareira de Moçambique, SARL. Beira.

CONTOUR (2006). Plano de desenvolvimento de Negócio para Conservação da Natureza naComunidade de Cubo. AWF. Volume 2.

CONTOUR (2006). Plano de Gestão Estratégica. Comunidade de Cubo. AWF. Volume 1.

DINATEF (2008). Relatório de Balanço Anual 2007. Draft. MINAG. Maputo.

DNENR (2008). Situacao dos biocombustiveis no pais. ppt

DNTF (2006). Estratégia Nacional de Reflorestamento. Por um desenvolvimento de plantaçõesflorestais suntentáveis. Presentation at the 1st National Meeting on Lands and Forests. Maputo

FAO (2007). Bioenergy and Food Security Project. FAO web site.

FAO (2007). State of World’s Forests. FAO. Rome

GoM (2006). Poverty reduction strategy 2006-2009. Ministry of Planning and Development.Maputo.

Himede, J. (2008). Bioenergy and Sustainable Development: opportunities and challenges. Pptpresentation in Washington.

Impacto (2006). Projecto de Expansão da área de plantação de cana de açúcar em Xinavane.Estudo de pré-viabilidade ambiental e definição de âmbito. Açucareira de Xinavane, SARL..Maputo.

Impacto (2007). Plantação de cana de açúcar e produção e armazenamento de açúcar em Maragra,Manhiça. Estudo de pré-viabilidade ambiental e definição de âmbito. Maragra Açúcar SARL .Maputo.



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IRIN (2007). AFRICA: Food to eat or to run your car ? UN Office for the Coordination of Humanitarian Affairs.

Jootse, Martin (2003). Jatropha and Biodiesel in Mozambique. SASOL. Maputo

MADER (2004). PROGRARI II: Strategy Document. Ministry of Agriculture and RuralDevelopment. Maputo.

Marzoli, Antonio (2007). Avaliação Integrada das Florestas de Moçambique. Inventário FlorestalNacional. DNTF/MINAGRI. Maputo.

Preseco Oy (2008). The Mbono Concept: East Africa. A regional study for Zambia andMozambique. Preseco/Hamk/Finnpartnership.

Pretromoc ( ). Company Profile. Petroleos de Mocambique. Maputo.

Petromoc (2008). Project Development Strategy. Petroleos de Mocambique. Maputo.

Togaat Hulett (2007). Annual Report 2007. South Africa.

UN (2008). Sustainabl Bioenergy: a framework for decision makers.



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Appendix 1 People and institutions that contributed to information gathering for this study

Name Institution Location and other

observationsEng. Saide National Directorate of New and

Renewable Energies of the Ministryof Energy

Maputro

Dr. Anna Locke CEPAGRI – Centre for Promotion of Agriculture

Maputo

Eng. Salvador JossiasEng. Oreste NakalaEng. Alima Issufo

National Directorate of lands andForestry

Maputo

Dr. Afonso Madope Fransfrontier Conservation AreasUnit, Ministry of Tourism

Maputo

Dr. Felício Fernando National Directorate of Environmental Impact Assessment

Maputo

Prof. Dr. Almeida Sitoe Faculty of Agriculture and ForestryEngineering of the UEM

Maputo, involved in research of biomass for biofuels

Prof. Dr. Carlos Lucas Faculty of Engineering of the UEM Maputo, research of processingtechnologies for alternative energiesincluding biofuels

Monica BrancsDr. Kemal Vaz

SEKAB/Eco-energia – SwedishCompany

Maputo but investment area is CaboDelgado

Eng. Roberto Zolho AWF MaputoEng. António Limbau Provincial Director of Agtriculture in

Sofala provinceBeira

Dr. Augusta Head of the Provincial Services of Forestry and Wildlife

Beira

Eng. Elidio Provincial Directorate of Agriculturein Gaza province

Gaza province hosts the first largescale biotehanol producing company(PROCANA)

Eulália Atibe Head of the administrative Post of Xinavane in Manhiça district

Maputo

David Technical Assistant/extensionservices

Provides support the the sugar caneMaguiguane Association

Salomao ChauqueGeraldo Macuacua

Maguiguana Association of SugarProducers in Xinanave

Maputo; association already hiringand paying the technical assistant(David)

Eugénio ZaqueuJafete ZimbaFrancisco MuchavePedro Matavele

Virginia CossaFrancisco MuchaveJoão chongoDavid CossaMandy MacuacuaJoaquim Macome

Members of the MacuvulaneAssociation of Sugar Producers

Maputo

Eng. Eugénio Silva PETROMOC Part of the working group oninvestments (Interministerialcommittee on biofuels); involved inthe experiment of production,storage, blending and distribution of biodiesel from coconut



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Setefani Isautier Director General of Açucareira deMarromeu

Telephone interview

Eng. Guambe Açucareira de Moçambique,Mafambisse

Telephone interview

Helena MottaRito Mabunda

WWF- Mozambique Maputo Office

Appendix 2 Distribution of Petromoc storage facilities in the country

Documents

Mozambique Biofuel Report June2008 Bio Fuels Draft