Indian companies also enter biofuel business in Ghana

India’s biggest investment in the sector so far in Ghana, which is to the tune of US$45 million is by the Ghana subsidiary of the Indian company, Hazel Mercantile. The Mumbai-based company which is a distributor of chemicals and petrochemical products intends to cultivate jatropha to produce biofuel.

The reports quoting an official of the Ghana Investments Promotion Council (GIPC), Augustine Acheampong Otto, who is Director of Global and Regional Operations revealed that another Indian company has already secured land in the country for the same purpose, but he did not name the company.

He however, said the company has made an investment commitment of US$40 million to cultivate jatropha and process biofuel in Ghana.

According to Mr. Otoo, the Indian company which started talks with the GIPC last year, has already set up office in Ghana at the beginning of this year.

“They are asking for 50,000 hectares. That is not difficult for us, as an Israeli firm had asked for 100,000 hectares and we were able to secure it in four areas close to each other,” he said.

He added, “Netherlands has started with about 100 acres in the northern part of the country. The Chinese have started a pilot project. Germans and Israelis are also here, along with Belgium and Italy.”

The rising interest of foreign businesses in the alternative energy sector in Ghana, is not without some costs and social challenges to the country which is mainly an agriculture economy.

Agriculture employs about 60 per cent of the population in Ghana and contributes about 35% of GDP. The sector contributes about 40 to 50% of total foreign exchange earnings, but only about 16% of arable land is used for agriculture.

But the country imports almost everything it eats. The country produces only 21% of its rice and about 42% of its maize requirements.

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Labels: Jatropha-Company

posted by Sudha @ 11:56 PM