Financing bioenergy and biofuels in Africa

1. AUC PROGRAM FOR DEVELOPMENT
OF BIOENERGY IN AFRICA
Presented by
Philippe NIYONGABO
Head of Energy Division
Department of Infrastructure and Energy
African Union Commission
Innovation Finance for Access to Energy
21 September 2015, Milano, Italy
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2. Why Bioenergy is Important in
Africa
Over 80% of the African population are still depended
on traditional biomass for cooking and heating.
Modern bioenergy is therefore central to achieving
SE4ALL.
However, bioenergy is complex because of the nexus
with energy, water, food and land use.
Therefore, investing in this important energy source for
Africa needs to be supported by well-designed, cross
sectoral policies.
It is for this reason that the AUC led an African
Bioenergy Policy Framework and Guidelines

3. Why bioenergy is important
to Africa?
Enhancing energy security by reducing oil
imports
Empowering rural development
Helping African countries move towards the
green economy path
Reducing traditional biomass consumption,
therefore reducing deforestation and health
problems and Empowering women role
Enhancing gender with possible positive welfare
impacts
Enhancing energy access in rural areas

4. Why demand is high for
bioenergy in Africa?
Africa has 60% of the world’s uncultivated land
Africa has wide range of agro-ecological
zones that provides wide optimal spectrum for
growing wide range of energy crops
Low labor cost
Fuel cost is extremely high
High cost of alternative renewable energy
sources

5. Challenges for bioenergy
development in Africa
Natural resources localized limitation
Climate change
Land tenure
Production issues
Trade issues
Low agricultural productivity
Poor knowledge base
Weak capacity research and development support
Technical and sustainability issues
Low investment and private sector participation in
the energy sector
Lack of harmonized regional policy framework

6. Risks of bioenergy
expansion in Africa
worsen food insecurity
environmental degrading
rainforest clearance

7. Biofuels Development for Transport and
Household Sectors
Implementing of the sustainable biofuel programme for
transport and household sector in collaboration with the
UNECA;
Carrying out Regional Training workshop on Biofuel
Development for Transport and Household Sectors:
Frist training workshop for the Eastern and Northern in
Cairo, Egypt 14-18 September 2015
Second training for the Southern in Mauritius, October
2015
Third training workshop for the Western and Central in
Senegal, November 2015

8. Strategy to unlock potential of
biofuels in Africa
Strengthening the Capacity of African
Countries to Promote the Use of Renewable
Energy to Achieve Sustainable Development
and Poverty Reduction by Implementing
Biofuels Programme for Household and
Transport Energy Use
The biofuel industry in Africa will catapult the
marginalised rural people into an inclusive
growth i.e. important for Agenda 2063 of Africa
Develop five case studies in five countries on
the experience of enabling policies and
regulatory reforms that facilitates for the
adoption of the biofuels technologies.

9. Bringing the Biofuel Projects to
Bankability
Organise workshops that promote PPPs
for sustainable power supply;
Design bankable projects for biofuels,
financing and building capacity to
access energy finance from different
funding mechanisms.
Projects are designed at country level
and presented at appropriate funding
mechanisms that will be defined in the
course of the implementation of this
project, such as ACEC and others.

10. MERCI
OBRIGADO
THANK YOU
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