Africa Business

Entries from February 2008

Bio-diesel production- Growing opportunity for African farmers?

February 12, 2008 · 1 Comment

As the need for power to fuel the world’s economy grows, bio-fuels are increasingly being seen as a potential opportunity for African farmers. There are many efforts by farmers to diversify into bio-fuel production across the continent. In Botswana, one such new project aimed at producing bio-diesel from oil extracted from the sunflower seeds and has the potential to improve incomes for farmers and create new jobs.

Continental Agricultural and Industrial Development, an international company specialising in bio diesel production from sun flowers has put an estimated $ 3 million agricultural tractors and equipment to do the ploughing and the planting of the crop. The farmers who benefit from the project will be trained in the necessary skills. The project is intended to help farmers to move away from subsistence farming to become commercial farmers.

Apart from growing the plant, farmers will be engaged in the process of extracting oil from the sunflower seeds at the company’s oil extraction plants. Continental will provide the technology for the extraction process. The company and the farmers will jointly own the facilities for extracting the oil and turning it into bio-diesel. The project is expected to create roughly 10,000 direct jobs and benefit 40,000 more indirectly through the additional processes such as servicing, transportation and delivery of the oil. Another estimated1, 400 industrial jobs could be created in the extraction plants.

Taking advantage of this opportunity will require farmers to not only know agriculture but they would also understand the energy industry and the market for their product.

Bio-diesel is a clean burning alternative fuel produced from domestic renewable resources such vegetable oils, including sunflower, animal fats or greases. However, there are increasing questions on whether bio-fuels will actually help address climate change. Scientists have recently found that the clearing of new lands for farming, and the process of extraction of some bio-fuels can add more greenhouse gases into the atmosphere than their use reduces. Another growing concern is whether farmers will switch totally to these new products to the detriment of food production. This, coupled with increasing demand for staples like maize and soybean (which are also used for bio-fuel production) are likely to make them so expensive that ordinary people cannot afford them as food. Oil from sunflower seeds is usually combined with ethanol from sorghum seeds and two components are used in the chemical process of producing bio-diesel. Sorghum is a staple in most countries in Africa and its increased use to produce fuel could affect food prices, researchers warn.

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Tanzanians urged to buy shares in the National Investment Company

February 6, 2008 · Leave a Comment

The National Investment Company Ltd (NICO) Company’s board chairman, Felix Mosha told Tanzanian Media that his company intends to sell new shares to the public. The move comes after a recent injection of a total of TZS 5bn in a fish processing facility in Mwanza Region.

The National Investment Company plans to sell shares to Tanzanians with a view of raising capital. It is expected that the fish processing factory, due to start production next February, will be a source of revenue for shareholders and the company in the near future. NICO intends to sell 50 million shares worth TZS 1.5 bn. According to Mr Mosha, the shares would be sold at TZS 300 each at the NMB, CRDB, Exim, FBME and CBA banks. The shares would also be sold at all post offices and at the Dar es Salaam Stock Exchange. “People should not hesitate to continue buying the company’s shares even if the 50 million shares are all bought,” Mr Mosha said. NICO currently has 25,000 shareholders and the number is expected to increase following the issuing of new shares.

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