Recently investors have been seeking land in African continent for the purpose of investing into biofuel and ethanal production particularly from sugar cane, maize and jetrofa, good stories have been coming from Mozambique for the success of such investment. There is no doubt that biofuel especially ethanol from sugar cane in Brazil has been one of the main stimulus of Brazil economic growth and suceess in this decade. USA is also investing in biofuel and ethanol as one of its strategies to fight GHG emission, in the face of climate change.
On side of the story which is not told in Africa, is the associated costs of this investment!. For sure data of Government financing in both Brazil and USA towards the investment in this sector is alarming. This is what makes me wonder given the nature of Government finances in African countries. The Brazilian Government annual subsidy to biofuel(ethanol) production is in terms of billions of dollors, the subsidy given by the USA Government is more than ten folds to those of Brazil!. Therefore for this sector to be successful and produce oil that is affordable, African Government will have to subsidy the sector to the same tune to USA and Brazilian counterparts. But now where is this money from?. my worry is that apart from causing food scarcity in the continent, this investment could result into even drying up needed resources for medicines, education and water to Africans!
Someone will have to pay this cheque for the biofuel investment in Africa! I hope the cheque will not be at the sidewalk, because someone will have picked it already! amazing
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