Evaluating the economics of biodiesel in Africa

Road transport in Sub-Saharan Africa is expected to rise in the coming years. Paradoxically, this expansion is occurring at a time when oil prices have reached new heights. Unstable oil prices do indeed increase the vulnerability of importers. However, it also presents them with a unique opportunity to explore promising technical options to help reduce their over-reliance on imported petroleum fuels. This paper takes a closer look at the potential for biodiesel, with an emphasis on fuels produced from oil palm, castor oil and jatropha in Ghana, Kenya and Tanzania, respectively. The paper provides an economic appraisal of biodiesels from these feedstocks, and sets the context for further discussions on biofuels in Africa.