Biomass energy: Employment generation and its contribution to poverty alleviation

Abstract

Studies were undertaken in Malawi from 1995 to 1997 and 2007 to 2008 to estimate the supply and demand of household energy. Because little is known about the supply chain for biomass, surveys were carried out for urban areas on its production, transport and trade as well as sustainable supply. Also, because biomass is used by all people for a multitude of purposes, a complete picture was made of regional and urban biomass supply and demand. The results indicated that biomass is not only the principal energy, accounting for 89 percent of demand, but also the main traded energy in the two time periods accounting for 56–59 percent of commercial demand. Petroleum products supplied 26–27 percent, electricity 8–12 percent and coal 6–10 percent. The market value of traded woodfuel was US$ 48.8 million and US$ 81.0 million in 1996 and 2008 respectively, about 3.5 percent of gross domestic product (GDP). The study found that in 1996 and 2008 respectively, the equivalent of 93,500 and 133,000 full-time people was employed in the biomass supply chain, approximately 2 percent of the potential workforce. In contrast, about 3400 and 4600 people were employed in the supply chain of other fuels in these years. If the Malawi findings are applied to the current estimated wood energy consumption in sub-Saharan Africa, then approximately 13 million people could be employed in commercial biomass energy; this highlights its importance as a means to assist with sustainable development and poverty alleviation.