Sustainable bio-fuels production : an institutional analysis of bio-fuels industry in Tanzania : the case of Rufiji River basin

Abstract: Bio-fuels production are important alternatives to fossil fuel, but bio-fuels are also associated with risks of displacing rural communities during the process of acquiring land, disturbing hydrological cycle- water scarcity, biodiversity loss, limit animal migration, displacement of native plant species, and ,hence, potential land use conflicts. Tanzania is well known as a blessed country endowed with numerous and diverse land and water resources in the form of rivers, lakes, wetlands and aquifers. In addition, Tanzania appear to have several comparative advantages of growing bio-fuels due to conducive climatic conditions, political stability, geographic location favour bio-fuels exporting, attractive investment policy, availability of labour force (skilled, semi skilled and unskilled) from rural population. However, Tanzanians are worried with the rapidly mushrooming of more than 40 investors as registered by MEM seeing them as competitors in as far as their natural resources are concerned as they target the vast area of fertile land, with best access to water. Despite, the emergent challenges of bio-fuels production have been reported but bio-fuels productions in Tanzania could potentially contribute to agricultural/rural development, reduction of oil imports, improving rural energy security, creation of new industries and technologies, reduction of GHG emissions – opportunities for CDM. This study is analyzing how the institution aspects of bio-fuels industry in Tanzania can contribute to sustainable rural smallholder's development by exploring the inter-relation of both formal and informal institutions. The study deployed both qualitative approach through focus group discussions and interviews that accomplished through use of facilitation methods and tools. Institutional improvements in the emergent issues of food security, energy provision, environmental protection, socio-economic, and macro-economic aspects were examined using reflexive governance and round table approach methodology. Furthermore, this paper describes bio-fuels initiatives, institutions perspectives and marketing policy for sustainable bio-fuel production in Tanzania, with the lower Rufiji River Basin as a case study. It was concluded from this paper that URT has to strengthen weak legislative laws, reviewing investors approach, protecting the endangered land rights of poor local people, and, hence empowering them by transforming ownership of bio-fuel industry through sustainable bio-fuel technologies, reflexive governance and roundtable on sustainable bio-fuels that ensure win-win situations.This study is establishing action plan which is meant for bio-fuels regulating institution as a needed change for Tanzania sustainable bio-fuels industry.