Can Tanzania realise rural development through biofuel plantations? Insights from the study in Rufiji District

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Abstract

Biofuel is a fast growing sector in Tanzania. Foreign and domestic companies are acquiring big portions of land, some up to 440,000 hectares. It is believed that the country has a reserve of 88 million hectares for agriculture. The government is committed to promoting the sector. But what are the implications of biofuel plantations for rural development in Tanzania? This is an area of inquiry which has not received adequate attention. The main objective of the study was to investigate whether biofuel plantations will have any significant impact on rural development in Tanzania, using the case of Rufiji District. The choice of the district was fourfold. One, it has a considerable number of potential biofuel investors. Two, a high proportion of the investors intend to use the vertical integration model of production, processing and marketing. Three, the district is dominated by smallholder farmers, who are poor with chronic food insecurity. Four, Rufiji district is rich in biodiversity and natural resources. The findings from this study will reflect the likely impact of biofuel plantations on rural development as the selected district represents the characteristics of many rural areas of Tanzania. A total of 161 respondents were selected randomly for interview. There were also consultations with village governments, non-government organisations, policy makers and researchers. The findings show both high expectations and concerns. The respondents anticipate benefiting from employment, income-generating opportunities, access to markets for crops, and improved social services. More men than female respondents are hoping to become out-growers. However, male respondents in particular were concerned about land grabbing while for women it was about food security, water use conflicts and whether they will be able to access clean energy. The lack of a biofuel policy and legal framework as well as poor rural infrastructure may undermine the realisation of biofuel benefits.

Introduction

Biofuel can be broadly defined as solid, liquid, or gaseous fuel which are predominantly or exclusively produced from biomass. Biofuels are manufactured from vegetable oils, waste cooking oils, animal fats or by-product of the pulp and paper industry. Liquid biofuel is a type of renewable energy that is made from organic matter including edible and non edible crops/plants. Two common types of liquid biofuels are biodiesel and bioethanol. While a large proportion of the feedstock that is considered for liquid biofuels is from food crops such as sugarcane, palm oil, maize, cassava and sorghum, non-edible plants such as jatropha can also be used to produce biofuel. The focus of this paper is on liquid biofuel. It looks on how this initiative could impact on both transport sector and improve clean energy access by households in Tanzania for cooking, lighting and for running stationary engine.

The production of biofuel is both for domestic use (mainly transport) and for export at a blending rate of 10% by 2020 which about 160–200 thousand tonnes of biofuels. However, as domestic consumption is considerably small most of liquid biofuel is expected to be exported.

In recent years there has been a growing interest in liquid biofuels in Tanzania. Local and multilateral companies are acquiring big portions of land, some in the range of 400,000 hectares in the country (Silayo et al., 2008). Nearly half of Tanzania's land area has been identified as suitable for biofuel production (GTZ, 2005). It is argued that Tanzania has the potential to become a world leader in biofuel production from its 88 million hectare reserve or land available (Kearney, 2006 cited in Kamanga 2008) and that less than 6% of this land has been utilised. However, aaccording to the Tanzania National Website, (http://www.tanzania.go.tz/lands.html), 22 million ha (or 23%) of the total land is allocated to conservation, which includes National Parks (4.2 million ha), Game Reserves (7.7 million ha), and Forest Reserves (10.1 million ha). The gross area cultivated/planted annually is about 5.1 million ha, which is only about 5% of the land area of Tanzania. The other available arable land, but not cultivated, is 10 million ha, much of which is used as grazing pastures. Within the reserves there is additional 4 million ha suitable for cultivation.

Currently, about 37 entities are engaged in bio-energy development in Tanzania, with a significant presence of foreign capital (LARRRI and JoLIT, 2008) and the number of investors is growing fast. According to the WWF, 2008a, WWF, 2008b study, about 17 large-scale companies intend to grow biofuel feedstock in the country and most of them are in coastal areas of the country which are also rich in biodiversity. Also there is strong government commitment to the promotion of the sector and the investment climate is favourable (URT, 2008).

But what are the implications of biofuel plantations for rural development where these plantations are taking or will take place? This is an area of inquiry which has not been adequately researched. This study was designed to provide some answers to this area of inquiry, i.e. biofuel plantations and rural development. The study was conducted in Rufiji District, Tanzania. The choice of the area was fourfold. First, this district already has investors in biofuel plantations. Second, it is rich in biodiversity and natural forests. Third, most of the investors prefer the vertical integration model, which involves production, processing and marketing being done by the company without involving small-scale farmers and out-growers, and fourth a high proportion of the people in this area are smallholder farmers, who are poor even by Tanzania's standards and food insecurity is chronic.

Although the study was conducted in Rufiji District only, the findings from it will have a lot of implications for the country, because most Tanzanians are poor and have similar socio-economic characteristics. The findings will inform the policy and decision-making process to ensure the efficient outcome of biofuel plantations in terms of marketing, rural development, food security and sustainable environmental management. This publication will also add to the body of knowledge.

Section snippets

Prospects and challenges of biofuels in developing countries

To be a viable energy alternative, a biofuel should provide a net energy gain, have environmental benefits, be economically competitive, and be producible in large quantities without reducing food supplies (Hill et al., 2006). There are those who argue that biofuel production could help in relation to food security since the production of bio-ethanol from sugarcane is much more rewarding than sugar production (Hill et al., 2006) in terms of income earnings per unit land. High income from

Biofuels in Tanzania

Tanzania is on the official UN list of Least Developed Countries (LDC), Highly Indebted Poor Countries (HIPC), and more pertinently Low Income Food Deficit Countries (LIFDC). The majority of its over 35 million people live in poverty (LARRRI and JOLIT, 2008). The country's per capita income was US$ 1434 in 2010 (Encyclopaedia of the Nations 2010). Poverty is largely a rural phenomenon and the poor are wholly dependent on subsistence agriculture. Urban poverty is also widespread and increasing (

The conceptual framework of biofuel and development

Biofuel development is a two-edged sword — if well planned it could stimulate rural development but if not well implemented it could have adverse impacts on rural development. Factors that could lead to a positive impact of biofuel plantations include appropriate biofuel policies, laws and regulations. In a country like Tanzania, where this institutional framework is not yet in place, the positive impact of biofuel plantations on rural development may not be realised. Biofuel production is a

Description of the study area

Rufiji is one of the six districts in Coast Region. It is situated between latitudes 7° 30′S and 8°40′S and between longitudes 39°5E and 39°0′E. Annual rainfall ranges from 1400 mm to 1600 mm. Rufiji district has a population of 281,101 (URT, 2002) with a growth rate of 4.6% persons per annum. The district has an area of 13,339 km2, of which 32% is suitable for crop and livestock production (Mwilawa, 2003). Eighty five percent of the people in the district are small-scale farmers and the major

Household characteristics

A total of 161 heads of households or family members were involved in the interviews, 23% being women and 77% men. The respondents were mainly the head of households. Where the head of the household was not available then a spouse, child or any family member who was conversant with the family matters were interviewed. The average age of the respondents was 46.5 years, with a high standard deviation of 28.6 years, suggesting diversity of age in the study area. Married respondents constituted 86.3%

Conclusions

The booming of biofuel plantations in Tanzania creates both hope and fear. The rural communities have high expectations concerning biofuel plantations in terms of employment, income-earning opportunities and improved socio-economic services. However, there are no policies or laws to guide the biofuel sector and because of this the impact of the sector on rural development is uncertain and hence of serious concern. An examination by gender reveals both differences and similarities. For instance,

Acknowledgements

The author would like to thank the Institute of Resource Assessment, University of Dar es Salaam, in collaboration with African Green Company Limited, for funding this study. Gratitude is particularly due to the farmers in rural areas who, despite their tight schedule, agreed to participate in the interviews, which enabled the author to obtain the data required. Furthermore, the author is grateful to the government officials, potential biofuel investors and academic community for providing

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