Rice farmers may be evicted by new biofuel companies

But analysts have pointed out the discrepancy between the government’s stated aim of using biofuels to bring energy to the rural poor, and the policy of evicting them from their land.

Currently, there is no biofuel policy, nor any legislation to govern its direction and production in Tanzania.

Under the guidance of the Ministry of Energy and Minerals, a Biofuels Task Force was established in April 2006 to develop the sector and push for legislation to stimulate the use of biofuels. This followed a study on “Liquid Biofuels for Transportation in Tanzania.”

A Swedish firm has been provided with 400,000 hectares of land to turn into sugar plantation at Wami River in Coast region, while more than 8,000 hectares of land in Kigoma region have been provided to a Malaysian and Indonesian firm for a proposed palm oil biodiesel project.

“Oil palms require major investment, and the trees can live for 30 years or more. Farmers entering into contracts to plant and grow palm trees may be forced to sign away use of their land for many decades,” warned Mr Mkindi.

The firms that are in the final stages of cultivating biofuel include D1 Oils Tanzania Ltd, a local subsidiary of the UK company D1 Oils.

It plans to use outgrowers and to have biodiesel processing stations in every district in Tanzania.

A German investor, Prokon, has begun a 10,000 hectare jatropha outgrower programme in Mpanda district in southwest Tanzania.

Diligent Energy Systems, a Dutch company with branches in Tanzania and Colombia, has began cultivation of jatropha in Babati, Engaruka, Chalinze, Pangani and Singida and large-scale cultivation in Handeni district of Tanga region.

The report also mentions a UK-based international firm, Sun Biofuels, which has acquired 18,000 hectares of land in Lindi region to cultivate jatropha.

“Farmers who currently grow cassava, rice and maize will be encouraged to abandon food crops and instead grow jatropha,” noted Mr Mkindi in the report.

Mr Mkindi said that, in addition, a US-UK group, a Malaysian group and a US-based venture fund are currently exploring more than 100,000 hectares for palm oil production.

To attract more investors, the government of Tanzania has analysed many fertile regions with good access to water, where farmers are already growing food.

Stephen Wasira, Minister for Agriculture, Food Security and Co-operatives, said various regions of Tanzania were facing food shortages and about 970,000 people were in need of aid.

Hence the government has to make arrangements to distribute about 50,000 tonnes of food to the affected areas by September this year.