Biofuels in Tanzania: Status, Opportunities and Challenges

Anthony M. Mshandete.J. Appl. Biosci. 2011. Biofuels in Tanzania: Status, Opportunities and challengesdevelopment are still to come as further deals arenegotiated and finalized (Kamanga, 2008; Sulle &Nelson, 2009b). In Africa, concern has been expressedabout the way the new biofuel investments may resultin the loss of rights over land on the part of localcommunities (Scott, 2009). With interest in allocatingland for biofuel expansion the security of land tenureand access or use rights on the part of local residentcommunities across rural could be compromised(Kamanga, 2008; Sulle & Nelson, 2009b). Table 7summarizes concerns and impacts of biofuelsinvestments on land tenure in Tanzania.Although at any rate as far as investment on land isconcerned, foreign investors are required to have ashare with Tanzanians. However, the amount of shareTanzanians have been given is very, very small, forexample, in the case of Sun Biofuel Plc's it is only 1%for two Tanzanians. On the other hand, the currentState President has on several occasion directlyexhorted villagers to identify village lands to be put touse by investors in mutually beneficial arrangements.Table 7: Some concerns and impacts of biofuels investments on land tenure issues in Tanzania.Sn Concerns Impact Referencesi Alienation anddisplacement.ii Conflicts arising fromland alienation anddisplacementiiiivInadequatecompensationacquired land.ofLocal interest and rightsinadequatelysafeguardedv Shuttered livelihoodresulting from landalienation anddisplacement• Land grabbing and the resultant displacement of villagecommunities is one of the biggest and real threats of bioenergy.• Forcing local communities out of their territories could plunge thefarming communities into economic and cultural exploitation, asthey will be laborers in biofuel plantations.• Alienation of local communities on their rights over customarylands. In Tanzania land act provides for the conversion ofcustomary tenure to leasehold for under 99-year leases.• Is causing tensions as investors’ and requirements come intoconflict with those of communities.• Lack of transparency in the way the investment is taking placeparticularly regarding the allocation of land is leading to conflict.• Insufficient proper consultation and poor understanding oftraditional land authority on biofuel investment proposed on landis likely to compound even more in future the conflicts betweenbiofuel commercial producers and local community.• Local people incur substantial opportunity costs in granting largeareas of land to investors, which are not being factored intoexisting assessments of land values.• Payment of compensation limited to loss of crops and treesexcluding loss of land itself undermine the position and welfare oflocal people.• Rights to use land for grazing, firewood collection, or wild fruitgathering stipulated in traditional land tenure systems is shutteredas the result of biofuel investment on the land.• Common lands are officially unrecognized and therefore ineligiblefor compensation by biofuel investors thus compromising localinterests and rights.• Loss of local villagers forest-based economic activities, includingcommercial charcoal production and harvesting forest products.• Loss of US $35-50 generally unaccounted-for per capita income,which have been estimated by World Bank from informal and nonindustrialuses of forests in Tanzania.• Loss of forests which, provide 75% of all building materials, 95%of household energy supplies and 100% of traditional medicines.• The community loss of land without receiving compensation,Lal, 2006; Envirocare,2007; Kamanga, 2008;Sulle & Nelson, 2009b ;Sulle, 2009b.ABN, 2007; Kamanga,2008;Oxfam International,2008;Sulle 2009a, b.ABN, 2007; Action Aid,2010; Cotula et al., 2009;Knaup, 2008; Rughani,2009; Sulle & Nelson,2009a; Sulle 2009a, bAction Aid, 2010;Scott,2009;Sulle & Nelson,2009a;Sulle2009a,b.Kamanga, 2008;WorldBank, 2007; Sulle &Nelson, 2009b; Sulle 2009a, b.2698