As a Namibian entrepreneur, my ambition is to contribute to the growth of the country’s economy through playing a role in the charcoal industry.
Charcoal is dubbed ‘Namibia’s black gold’, and it is a high-value commodity that is in high demand on the international market.
As the charcoal industry expands, it is important that creative minds join in to add value to it and also distribute the product globally.
Namibia’s charcoal industry has achieved high production, export income and employment growth by mainstreaming technological innovations and quality management, according to a 2016 report by the then Ministry of Industrialisation, Trade and SME Development.
This was done by adopting environmentally sound and socially equitable business practices along the value chain as a reseller of the Agrischoenau Charcoal brand, which is a 100% Namibian-owned company based in Windhoek.
The charcoal is a by-product of rangeland management to improve farmland livestock-carrying capacity, mainly for cattle farmers from the Omaheke, Otjozondjupa and Khomas regions.
One of my main objectives is to contribute to Namibian product awareness and foster quality and reputable products in the global market.
According to data from the Food and Agriculture Organisation of the United Nations, global production of charcoal increased by more than 52 tonnes in 2013.
It has increased 21% since 2023, and 72% since 1993.
Africa, which now accounts for 61% of global production, has significantly impacted this rapid growth.
Over the past two decades, Africa’s global lead in charcoal production has gradually increased.
In comparison to the rest of the world, Brazil is the largest single producer of wood charcoal, with an estimated production of approximately 7,25 million tonnes in 2014.
Wood charcoal has distinct characteristics that are gaining popularity due to its inherent qualities.
For example, it is an excellent humidity regulator because it can absorb moisture from the air.
This includes the removal of unpleasant odours and harmful substances, as well as being used for water purification and as room air fresheners.
The Agrischoenau charcoal brand has met all the legal requirements and quality control checks required to compete globally.
It satisfies international Forest Stewardship Council standards.
Much of the charcoal traded internationally is used for food preparation, whereas in emerging and industrial countries, it is no longer the primary domestic cooking fuel, but rather a symbol of affluence through its use as fuel for braais.
In terms of product distribution and trade, several factors emerge, such as the depreciation of the local currency, which is partly exogenous and has led to an increase in demand for Namibian charcoal, particularly in the Middle East and Europe.
This basically means when the currency value of the host country has decreased relative to another country’s currency, the product denominated in the depreciating currency becomes relatively cheaper for foreign buyers, therefore, this increased price competitiveness will essentially spike demand for those products in international markets.
While endogenous factors, such as the perceived high quality of Namibian wood charcoal, given its abundance and low-cost hardwood feedstock that serves as an essential input, and its high calorific and long-burning properties, drive demand.
According to the ministry of trade, Namibia’s charcoal performance is attributed to the fact that the country supplies high-grade charcoal at a low price, with an average unit value of US$213 per tonne.
In conclusion, biomass utilisation benefits the Namibian economy significantly.
Charcoal production has increased, creating much-needed direct and indirect job opportunities, as well as foreign exchange export revenue.
It is up to the Namibian youth to seize opportunities to join the economic prosperity bandwagon.
- Lilongeni Unoovene is a renewable energy consultant and entrepreneur.
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