Windhoek
Charcoal has a very significant role in the de-bushing industry in Namibia. It is the sixth largest export worldwide, worth about N$200 million per annum in exports, with the South Africa and the United Kingdom (UK) being the major importers.
There are about 240 active producers and 6 000 people employed both directly and indirectly in the industry. The annual production is about 85 000-100 000 tonnes, of which 99% is for barbeque.
Although Namibia has a growing charcoal industry, local demand is insignificant compared to exports, with firewood still most popular for barbeque. After production, 50% of charcoal is packed into 50kg bags and exported to South Africa.
The methods of productions are labour-intensive and working conditions are often not satisfactory.
The regulatory framework is not robust enough to stop illegal harvesting, nor strengthen permit regulations and these increase the problem of lack of business orientation, quality consciousness and long marketing chains.
The industry – if well regulated – could potentially employ 21 000 people and an extra 2 000 in other parts of the value chain. It also has a lower investment requirement, especially with inputs, such as water and electricity.
The world market is also increasingly under-supplied and Namibia’s industry can meet that demand with possible estimated production capabilities around 100 000-400 000 tonnes in 10 years. For environmental sustainability, a suitable legislative framework for workers, farmers, producers and the economy is advisable.
Wood chips and pellets are excellent sources of bio-energy with worldwide demand standing at 35.1 million tonnes of chips and 12.2 million tonnes of pellets per annum. The local demand is growing. For example, Ohorongo Cement factory demanded 85 000 t/year for its cement plant in 2014.
There are technical difficulties involved, like chippers breaking down frequently and high sand content which disqualifies Namibia from complying with Europeans (EU) standards. Employment creation is fairly limited, with less than two people needed to operate a mobile chipper.
Despite Namibia not being compliant with EU standards, it is still possible to study beyond supplying households and small power plants to assess whether industrial users accept the Namibian qualities.
In Africa there is potential demand from Botswana and Zimbabwe. Increasing local demand is also possible, as Namibia Breweries, MeatCo, NamPower, mining, fisheries and other energy-intensive companies in Windhoek can look into the generation of electricity from encroacher bush.
There is also no quality demand from Europe for woodchips, only for pellets, and a large-scale contribution to de-bushing seems possible if the market of the industrial users in Namibia can be penetrated.