Potential markets and policies for sustainable liquid biofuel production with emphasis to Eastern Africa countries: a review

Abstract

Abstract Background The production of liquid biofuel in Eastern Africa countries has the potential to play an important role on the global biofuel markets in the coming years, because transportation fuel demand is expected to grow. Despite the presence of suitable environmental conditions for bioenergy crop cultivation in Eastern Africa, liquid biofuel production has been restricted by different factors, including market situation and government policies. The objective of this review is to evaluate the potential markets, policies, strategies, and plans for liquid biofuel production in some Eastern Africa countries, including Ethiopia, Kenya, Sudan, Tanzania and Uganda. Main text Over 64 scientific articles and reports published between 2002 and 2023 related to liquid biofuel production market and policies were collected from internet search engines and unpublished grey literatures and reviewed. Since liquid biofuel production was in early stage of investment in Eastern Africa countries by 2020, all the countries showed similar restrictions. It was found that the global market demand for liquid biofuel increased after 1980s. For example, although Ethiopia started bioethanol production in 1950s, the production was discouraged by the lack of a market. Biofuel trade is globally determined by the biofuel policies of industrialized countries, which are mainly driven by the willingness to reduce emissions and to tackle volatile fossil fuel prices. Eastern Africa liquid biofuels has a number of market openings, including rural domestic use, substituting fossil fuel imports, and supplying the European market. There are also attractive legal conditions and political willingness to invest in the production of liquid biofuels. However, institutional weaknesses hindered the possibility to coordinate liquid biofuel production. The lack of adequate domestic institutions, coordination mechanisms, and robust monitoring resulted in land-use conflicts, corruption, and technical challenges. Appropriate policy measures are required to local land use determination, selection of appropriate type of bioenergy crops, and biofuel processing types and scales. In particular, small and large-scale biofuel production projects are required to include biofuel production in the conventional agricultural farming practices. Conclusions Good governance is highly important for bioenergy crop production, liquid biofuel processing and consumption in the whole liquid biofuel value chain. Moreover, it is important to exchange good practices through cooperation, including—but not limited to—intra-African countries, which would accelerate the learning process and the deployment of effective measures and mechanisms. There should be biofuel value chain upgrading to overcome fragmentation and inconsistency of measures; match-making between demand and supply at domestic, intra-African, and internationally with proper public awareness creation.