Tanzania is representative of an underdeveloped country that does not produce or consume bioethanol, but which has a high interest in having other countries using its fertile, virgin lands for bioenergy purposes. Tanzania is a sugarcane producer, but not a fuel ethanol producer as of yet. A Swedish company is among seven foreign firms that want to buy or rent large chunks of fertile land along the Rufiji Delta. The firm is looking for about 400,000 hectares for the production of etha­nol from sugarcane. It has already put 20,000 hectares into the crop and a further 50,000 hectares are yet to be developed (Cardona et al., 2009).

Sugarcane is an important commercial crop in Tanzania. It is the main source of sugar produced for both export and domestic consumption. Tanzania is well situated for the sugarcane production in East Africa. The country has a wide variety of climate and weather and an area of 945,087 km2. Rainfall may be con­sidered the limiting factor for most crops, sugarcane inclusive. About 21% of the
country can expect 90% probability of receiving slightly higher than 750 mm of rainfall and only about 3% can expect more than 1,250 mm.

The yields and technology for sugarcane growing are very low. Consequently, the feedstock prices are very high. The production of ethanol in Tanzania from sugarcane juice or molasses can be economically competitive with global produc­tion once the costs of feedstock, namely, sugarcane, are reduced by 70 to 80% of the current cost (Cardona et al., 2009).

Actually, this country is under very serious analysis by FAO (a BEFS project with the participation of the authors of this book) regarding the biofuels potential and food security risks. Some considerations about this country will be discussed in detail later in this chapter.