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Trading And Investing In Africa

ISSUE 110 - VOL 2
June 15 - July 14, 200
8
Dr. Bienvenu-Magloire Quenum
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Developing rural activities to solve both energy crisis and food crisis

By Dr. Bienvenu-Magloire Quenum

African countries' decision-makers and international aids agencies are scrambling to find solutions to the energy and food crisis that are threatening to completely disrupt the economy in African nations, create social instability and chaos all over the world at large.

Urgent meetings are held ("Summit On Food Security", 3-5 June 2008 at the FAO headquarters in Rome, Italy; Group of 77 meeting at Yamoussoukro, Ivory Coast, 10-13 June, 2008. Not to forget the forthcoming G8 meeting at Osaka, Japan, from July 7-9, 2008; and a meeting to discuss oil pricing that Saudi Arabia's rulers are considering for the near future).

As stated many times here [1, 2, 3, 4, 5] in Africabiz Online, African countries should not rely too much on these meetings and particularly on G8 periodic gathering to assist finding sustainable solutions to the numerous problems hampering the harmonious developing of the continent. They themselves should devise adequate strategies that would assist reverse the downward trend and boost the global economy.

- Energy generation using fossil raw-materials is not the solution for African countries

Feverishly, African governments are trying to solve the food crisis, shedding levies and taxes on imported food and commodities to ease social tension and avoid the spreading of hunger riots.

These fiscal measures to lower food prices on the marketplace are having severe negative impact on already unbalanced African nations budgets that dedicate up to 80% of revenues to civil servants' salaries and wages.

As for the energy crisis, not a single master plan is currently devised in any single African country to setup power generating systems as alternatives to classic systems based on the utilization of fossil raw-materials.

All over the continent, utilities and power companies are rushing plan to revamp and restructure existing plants and establish new ones. Some African governments are even considering the construction of nuclear power generating plants. That last option being - in our opinion - an absolute aberration in current African countries underdeveloped economic environment.

Indeed, nuclear (atomic) power generation is a very sophisticated technology that requires first huge investment (in the range of several US$ billions for a single plant to deliver 1,000MW); second, the hiring of highly competent technical staff, and third, a densely integrated high-tech industrial environment that currently does not exist in a single African country.

Which means that opting for atomic nuclear plant technology would require hiring technicians from the few big players countries that control the technology: the United States, France, Great-Britain and Russia - and pay back huge salaries in hard currencies and provide also expatriation incentives. Also everything from sophisticated computers to heavy machinery, tubes, electrical wiring and so on would be imported.

And all these cumulative investment and operating expenses would not only increase the pricing of the electricity delivered to consumers, but also increase national debt load.

Therefore, no doubt about this: Any African country that would opt for nuclear technology to solving the energy crisis will increase dependency to foreign influence, and loose the minimal apparent (political) independence left - for the so-called independence of African nations is a myth. [That statement cannot be developed further in current issue, for lack of space and time. However, the reader will find exposed at this link elements to ponder about the matter]

Further, efficient power generating systems need to be established now and fast in African countries, in the period-range of one to two years maximum, to avoid a total deliquescence of the economy. And an atomic nuclear plant to produce electricity cannot be established in that span of time.

So much for the nuclear technology to solving the energy crisis in African countries. It is simply a waste of time considering such a solution - even if nuclear plants engineering companies from developed countries are now scouting the continent proposing financing schemes to assist in the matter.

Other solutions based on fossil raw-materials - coal, oil and gas powered systems - are not sustainable alternatives due to the skyrocketing purchasing prices these raw-materials are now experiencing. The causes being structural and geostrategic: the wars in Afghanistan and Iraq, the Middle East /Palestinians and Israelis imbroglio, and Iran adamant determination to become a nuclear power. Etc.

These geostrategic causes will not disappear or change for the near future. So, one can say that oil and strategic commodities prices will stay at (speculative) high level for a long time, and would certainly remain at high level for at least end of 2011. That is even an very optimistic assumption!

Further, the implementation of above listed solutions would not service rural areas to allow for the establishment of crops' processing units in the countryside. Emphasis will be placed on servicing cities and large boroughs, which are currently submitted to power cut on daily basis all other the black continent.

- Developing rural activities will solve both energy crisis and food crisis, and boost the global economy

Above paragraphs lead to the conclusion that fossil-based power generating systems would not assist boosting the economy in African rural areas, which is the only way to turn the economy around in African countries as advocated and demonstrated in several issues of Africabiz Online.

Previous deliveries [89, 90, 91, 92]) exposed the tremendous impact agriculture development could have on the global developing of African nations, generating abundant biomass that would be raw materials to generating electricity. Three issues particularly [1, 2, 3] highlighted the astounding economic boost resulting from agriculture development, crops processing and biogas electricity production.

Power generation based on the utilization of fossil raw materials will never produce double-digit annual growth rates for 10 years running - a performance never achieved today by any single African country.

The developing scenario described in above linked issues does not require (initial) huge investments necessary to set up (for example) and operate an atomic nuclear electricity production plant. It is not capital intensive and most important, it set up conditions to create thousand and thousand jobs in rural areas and establish a network of small crops transformers (industrialists).

In conclusion, African countries have not alternative but to diversify agriculture productions, that will yield abundant biomass and by-products to generate energy, and assist establishing crops' processing plants in the countryside. This can be implemented in a short span of time - one to two years - to reverse upward the economy and creating riches for all, to efficiently fighting rampant poverty in African countries.

Again and again, let us be convinced that only by boosting economic activities in rural areas (where up to 80% of African countries' population live) would Africa start its voyage towards prosperity. Any other strategy is just a waste of time.


About the author: Dr. Bienvenu-Magloire Quenum is the principal/ managing director of Dr. Quenum & Associates, IBC. He is an experienced Investment & Business Planner with 25 years consulting practice in African countries. He is the editor in chief of Africabiz Online

MORE ON BIOGAS ENERGY
1- 21st Century Essential Guide to Methane and Biogas
Landfill Methane and Manure for Energy, AgStar Program, Recovery and Mitigation, Greenhouse Gas Emissions
by World Spaceflight News (CD-ROM - Mar 5, 2005)
2- Running a Biogas Program
by David Fulford
3- Biogas From Waste
by Dieter Deublein and Angelika Steinhauser (Hardcover - Apr. 18, 2008)
4- A Chinese Biogas Manual: Popularising Technology in the Countryside
by Ariane van Buren
5-
The biogas handbook
by David House
6- Biogas: What It Is, How It Is Made, How to Use It
by Food and Agriculture Organization of the (Paperback - Jan 1985)

7- Biogas systems: Principles and applications
by K. M Mittal
8- Biogas:
The Indian NGOs' Experience
9- Landfilling of Waste: Biogas
by T. Christensen, T. H. Christensen, R. Cossu, and R. Stegmann (Hardcover - Jan 15, 1996)
10- Building a Better Biogas Unit
(Better Framing Series, No 32/F3028)
by Food and Agriculture Organization of the (Paperback - Jun 1987)
11- Winning Our Energy Independence
by S. David Freeman (Paperback - Sept. 7, 2007)
12- China, azolla propagation and small-scale biogas technology
Report on an FAO/UNDP study tour to the People's Republic of China
by Food and Agriculture Organization of the United Nations (Paperback - 1978)

"CONTRIBUTOR'S GUIDELINES" are available here. We invite you to contribute to AFRICABIZ ONLINE MONTHLY ISSUE - with articles related to "How Africa Could Bridge The Developing Gap".

Your feedback / objection / contribution is welcome. Visit WorldWide BizCenter, and choose General Information (as topic) to create a thread for discussion. On the top of the WorldWide BizCenter page, there is a HELP link to assist you making an efficient use of the discussion board. This link also is useful


Many thanks for subscribing to Africabiz. See you here on July 15, 2008.


  Dr. B.M. Quenum
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Business Opportunities

LIVESTOCK & GAME DEVELOPMENT - PART VII: - A MEDIUM-SCALE CATTLE FATTENING OPERATION - E- QUANTITY OF ELECTRICITY PRODUCED FROM CATTLE DUNG

Referring to the conversion table here available, and pigsite.com calculations, we know that one metric cube of biogas can generate 2 kWh of electricity. Therefore, one can estimate the quantity of biogas-electricity generated by one fattening operation (1,200 cattle heads produced per year at capacity) to be equal to 626,720,000 kWh - [That is 313,360,000 m3 of biogas*2 kWh] or 6,26 MWh of electricity per year.

Just calculate the amount of biogas electricity that would result from, let say, 10,000 animal breeding operations, which fatten each 1,200 cattle heads per year!

The consequences resulting from the production of such amount of renewable energy had already been explored in a previous issue (considering pig waste) titled
: Energy Self-sufficiency Is Feasible For African Countries.

For more on the matter click here

MORE ON LIVESTOCK & GAME DEVELOPMENT
1-Handbook of Livestock Management
by Richard A. Battaglia (Paperback - Jul 21, 2006)
2- Raising Small Livestock:
A Practical Handbook
by Jerome D. Belanger (Paperback - Feb 11, 2005)
3- The Homesteader's Handbook
to Raising Small Livestock Goats, Chickens, Sheep. Geese, Rabbitts, Hogs, Turkeys, Guinea Fowl, Ducks and Pigeons
by Jerome D. Belanger (Hardcover - April 1974)
4- Backyard Livestock:
Raising Good, Natural Food for Your Family, Third Edition by Steven Thomas and George P. Looby (Paperback - Jan 2, 2007)
5-
Keeping Livestock Healthy:
A Veterinary Guide to Horses, Cattle, Pigs, Goats & Sheep, 4th Edition
by N. Bruce Haynes (Paperback - Nov 1, 2001)
6- Alternative Health Practices for Livestock
by Michael Keilty and Thomas Morris (Hardcover - Jan 1, 2006)

7- A World Dictionary of Livestock Breed
Types, and Varieties
by V. Porter and I. L. Mason (Hardcover - Jun 6, 2002)
8- Livestock waste facilities handbook
(Paperback - 1985)
9- Raising Small Livestock:
A Practical Handbook
by Jerome D. Belanger (Paperback - Feb 11, 2005) 10- Livestock Feeds and Feeding (5th Edition)
(Hardcover - Jun 8, 2001)
by Richard O. Kellems and David C. Church
11- Raising Game Birds
by Lessiter Publications (Paperback - Jun 1986)
12- Livestock Production in Unfavourable Economic Environments:
Strategies for Attaining Sustained Competitive Advantage
by P. G. A Jennings (Hardcover - Mar 30, 2007)

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