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Government Support Critical to Establishing South African Biofuels Markets - New analysis from growth consulting company Frost & Sullivan,
Government Support Critical to Establishing South African Biofuels Markets

 

PRZOOM - /newswire/ - Cape Town, South Africa, 2007/11/07 - New analysis from growth consulting company Frost & Sullivan, "South African Biofuels Markets", finds that the market could earn revenues of $872.0 million in 2010 and as much as $1,039.0 million in 2013.

   
 
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Although the South African biofuels markets are currently only theoretical, they offer several promising opportunities due to the government’s commitment to establishing the industry. However, delays in government decisions have dampened investments and will continue to hamper growth in the short term.

New analysis from growth consulting company Frost & Sullivan (chemicals.frost.com) South African Biofuels Markets, finds that the market could earn revenues of $872.0 million in 2010 and as much as $1,039.0 million in 2013.

"The market for biofuels production in South Africa offers real potential, as South Africa has much to gain from decreased dependence on imported fossil fuel products," comments Frost & Sullivan Industry Analyst Cornelis van der Waal. "Biofuels utilisation will also form the cornerstone of the government’s strategy to reduce greenhouse gasses under its Kyoto commitments."

Biofuels can also play an important role in stimulating economic activity in agricultural communities and boosting employment. As South Africa is a net importer of petroleum products, any additional local production should be encouraged. There will be significant opportunities for new and established companies to get involved in the lucrative petroleum sector that is currently dominated by a small number of large competitors.

However, the manufacture of biofuels requires feedstock and these could potentially conflict with food production. It is, therefore, of the highest importance that a cohesive strategy is developed at a central level with contributions from all stakeholders.

"Current agricultural activities in South Africa are mostly geared to meet local requirements and any additional demand for the same products will increase prices and reduce availability," says van der Waal. "While there is a delay in the development of the national strategy for biofuels, the planning and investment from the private sector has come to a halt. As long as there is no further clarity on the opportunities, it can be expected that very few new companies would be willing to invest in this industry."

Market participants need to carefully plan their area of involvement in the biofuels industry. There are various opportunities in the agricultural and production industries, but competition could become fierce, especially if government subsidies are favourable.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the investment analysis and growth opportunities in the South African Biofuels Markets, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, fax number, and email address. Upon receipt of the above information, an overview will be sent to you by email.

South African Biofuels Markets is part of the Chemicals and Materials Growth Partnership Service programme, which also includes research in the following markets: Sub-Saharan African Biofuels Markets, European Biofuels - Market and Opportunity Analysis, European Biodiesel and Feedstock Markets, Strategic Analysis of the Asia Pacific Biodiesel Industry, Strategic Analysis of the Indian Biofuels Market and Latin American Biofuels Markets. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

About Frost & Sullivan
Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

 
 
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Government Support Critical to Establishing South African Biofuels Markets

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Contact: Patrick Cairns 
+27 21 680 3274 patrick.cairns[.]frost.com
 
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