Research report presented in partial fulfilment of the requirements for the degree of Master of Business Administration at the University of Stellenbosch / Thesis (MBA (Graduate School of Business))--Stellenbosch University, 2011. / ENGLISH ABSTRACT: The purpose of the study is to investigate the feasibility and sustainability of producing biodiesel
from Jatropha, which contains oil in its seeds by using the Rainbow Biotech economic intervention
or also known as the Distributed Food and Fuel Plantation (DFFP) model.
The DFFP model is an effective mechanism for producing food and fuel in conjunction with each
other, without the biodiesel production influencing the production of food in an adverse way. This is
very important, as food security is a high priority for Africa, in order to address the problem of
hunger and poverty. Biodiesel produced from Jatropha is an eco-friendly and sustainable
alternative to fossil fuel diesel, as it is a carbon neutral fuel.
Jatropha cultivation will also create much needed employment in the rural areas of Africa, which
has the highest need for socio-economic development on the continent. Jatropha also has the
ability to grow on marginal soils and wastelands. Africa has vast open spaces on which Jatropha,
as a biodiesel source, can be cultivated without infringing on food production areas.
The energy return of the whole production cycle of Jatropha biodiesel is nevertheless a source of
much debate. Most stakeholders felt that the energy return is negative. No agreement has yet
been reached about whether the energy content of the by-products from biodiesel must be
included in the integrated energy balance equation.
In order to make biodiesel from Jatropha a sustainable alternative for small farmers in the Southern
African Development Community (SADC), government and regional policies will have to support it
by promoting it actively. This will generate interest from global biodiesel investors who will then be
willing to invest in projects based on the DFFP model of economic development.
The DFFP model offers investors economic returns on investment of between 29 and 33 per cent
and payback periods of less than four years. It is a very attractive economic development
instrument, as it will ensure equitable and sustainable economic and rural expansion in SADC.
Ultimately, this model has the potential to create a better life for all the inhabitants on the African
continent. Rainbow Biotech (the DFFP model), as an economic development mechanism, will
therefore indeed be the next big thing for the SADC in the future.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/18195 |
| Date | 03 1900 |
| Creators | Roux, Pieter Gerhardt Van der Byl |
| Contributors | La Grange, Danie, University of Stellenbosch. Faculty of Economic and Management Sciences. Graduate School of Business |
| Publisher | Stellenbosch : University of Stellenbosch |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Rights | University of Stellenbosch |
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