Biofuel Policies in Tanzania

Abstract

Tanzania’s energy consumption is dominated by biomass, most of which is consumed by households. Apart from biomass, the country has extensive hydropower, coal and natural gas resources. The overwhelming dependence on biomass for basic cooking and heating needs by the majority in Tanzania, is a major cause of poverty and several other deleterious effects. As a consequence of the harmful effects of fossil fuels, biofuels are seen as a source of sustainable growth to help alleviate poverty in Tanzania. In this chapter, present policies and other framework conditions influencing the development of the biofuel sector in Tanzania are investigated. This includes the Tanzanian Energy Policy, Land Act, National Forest Policy, National Environment Policy, Agricultural Sector Development Policy, and the Tanzanian Transport Policy. The necessity for policies directly related to biofuel production is discussed. The Tanzanian government has established a Biofuels Task Force (BTF) in order to produce guidelines for the design of a set of appropriate policy initiatives. Due to the lack of formal biofuel policies, several external agencies have made recommendations on policies that the Tanzanian government should adopt. It is concluded that the policies existing in Tanzania are indirect and thus biofuel producers lack a reliable framework. Due to increasing biofuels, especially amongst small-scale farmers, the government must seek to provide these smallholders with incentives to grow their productions along with large-scale producers.