September 2014 DRAFT MASTER PLAN Industrial Sub Sector ... Biochem Industries Masterplan.pdf ·...
Transcript of September 2014 DRAFT MASTER PLAN Industrial Sub Sector ... Biochem Industries Masterplan.pdf ·...
Industrial Sub Sector Master Plan for Biochemical Industries
M I N I C O M
S e p t e m b e r 2 0 1 4
Industrial Sub Sector Master Plan for Biochemical Industries
DRAFT MASTER PLAN
BIOCHEMICAL
INDUSTRIES
Industrial Sub Sector Master Plan for Biochemical Industries
Bio Chemical Sector - What is Bio Chemical Sector?
- Bio Chemical Sector - Global Overview
- Bio Chemical Sector - Rwanda
Master Plan of Bio Chemical Sector in Rwanda
- What is Master Plan?
- Situational Analysis
- Policy Interventions & Institutional Capacity Building
- Infrastructure Development
- Recommendations & Proposed Interventions
Project Approach & Deliverable Status
PRESENTATION STRUCTURE
Industrial Sub Sector Master Plan for Biochemical Industries
PROJECT APPROACH &
DELIVERABLE STATUS
Industrial Sub Sector Master Plan for Biochemical Industries
BIO-RESOURCE MAPPING
REGIONAL OPPORTUNITIES
IDENTIFICATION OF SUITABLE
INDUSTRIES
PERFORMANCE & CHALLENGES
REVIEW OF POLICY FRAMEWORK
B I O C H E M I C A L S E C T O R P O T E N T I A L
APPROACH TO ASSIGNMENT - BASED ON 3 CONSECUTIVE STAGES
S U B S E C T O R M A S T E R P L A N
DEVELOPMENT OF GROWTH SCENARIOS
ENGAGEMENT IN PPP ARRANGEMENT
INFRA DEVELOPMENT
REVIEW OF EXISTING INDUSTRIES STAGE 1
STAGE 2
STAGE 3 CAPACITY BUILDING
Project Approach
Industrial Sub Sector Master Plan for Biochemical Industries
INCEPTION REPORT 1
INTERIM REPORT 2
DRAFT REPORT 3
Submitted
Submitted
Submitted
FINAL REPORT 4 On-going/ To be Submitted
Deliverables
Conducting National Workshop
Deliverable Status
Industrial Sub Sector Master Plan for Biochemical Industries
BIOCHEMICAL SECTOR
Industrial Sub Sector Master Plan for Biochemical Industries
Chemical substances &
processes that occur in plants,
animals and micro-organisms.
Based on various Bio-Refining Technology
Biochemical
products - human healthcare, food
& agriculture, industrial sector
etc.
What is Biochemical Sector?
WHAT IS THE POTENTIAL FOR RWANDA?
SOURCE PROCESS MARKET
Industrial Sub Sector Master Plan for Biochemical Industries
Biochemical Sector - Advantages
Heal
• Create indigenous medication with reduced side effects
• Prevention & treatment of viral infections
Fuel
• Streamline steps in chemical manufacturing processes
• Reduce use and reliance on petrochemicals
Feed
• Quality crop yields
• Reduced production costs
• Producing foods free of allergens and toxins
Manufacturing Advantages
Biochemical Innovations
Reduced Climate Impact & Pollution
Industrial Sub Sector Master Plan for Biochemical Industries
Sector Opportunities/ Techniques Sector Challenges
Extensive research required
Access to technology Economy of scale
Lack of know how among entrepreneurs & professionals
Lack of demonstration projects or business models
Development & training of skilled workforce
International Standards imposed by the developed markets for biochemical industry
Dedicated Production
using enzymes through bio catalysis and fermentation
Bio fuel derived Using by-
products of bio fuel (bio ethanol and
biodiesel)
Plants using crops or algae and
extracting these after harvesting
Biochemical Sector: Opportunities & Challenges
Industrial Sub Sector Master Plan for Biochemical Industries
Feedstock potential for Bio-based Products
Feedstock Crop yield kg/ha/a
Oil yield kg/ha/a
Meal yield kg/ha/a
Residues kg/ha/a
Fractions
Palm oil
Fruit 12000
Palm oil 5000 Palm kernel oil 320
Palm pulp meal 6000 Kernel seedcake 680
Empty bunches 8000
Soybean
Seed 3400 600 2800 2500
Rapeseed
2500 1000 1500
Sunflower Seed 2000 800 1200
Industrial Sub Sector Master Plan for Biochemical Industries
Feedstock potential for Bio-based Products
Feedstock Crop yield kg/ha/a
Residues kg/ha/a Fractions
Wheat
8000 11800
Rye
3800 4400
Corn 8160 8700 Type MC Share d.w Stalk 70-75 50 Leaf 20-25 25 Cob 50-55 20 Husk 45-50 10
Sugar cane 58000 - 88000
24000 -37000
Sugarbeet 69300 4700
Industrial Sub Sector Master Plan for Biochemical Industries
Feedstock potential for Bio-based Products
Feedstock Wood yield kg/ha/a
Residues kg/ha/a
Chemical Composition of Dry Matter
Fractions
Eucalyptus ssp. 14000-28000
8300 -16400
Cellulose: 40-50% Hemicellulose: 20-35% Lignin: 15-35% Extracts: 1-20%
Pine ssp. 1800 - 17500
800- 7600
Feedstock Yield kg/ha/a (dry) Chemical Composition of Dry Matter
Microalgae (open pond) 1000-3000 Protein: 6-79% carbohydrates: 4-64% Lipids: 1-40% Nucleic acid: 1-6% Microalgae (open bioreactors) 5000-6000
Macroalgae 45000
Industrial Sub Sector Master Plan for Biochemical Industries
Existing Markets
• Pharmaceuticals • Agrochemical
intermediates • Medical biomaterials • Electronics • Home & Personal
care
Emerging Markets
• Bio-plastics • Animal Health • Coatings,
adhesives • Solvents &
Elastomers
Biochemical Growth Trend Global Biochem Sector Characteristics
>13.3 million farmers worldwide use bio-based products
Fast growing, innovative sector– Growing by CAGR 8 %
Emerging sustainable alternative to Petrochem derivatives
By 2025, to reach 20% of the global chemicals share
Biochemical Sector: Global Scenario
8% 20%
Source: IB 2025, 2009
Industrial Sub Sector Master Plan for Biochemical Industries
Bio Chemical Sector Potential in Rwanda
Tea, Coffee, Mineral & Tourism
Textiles, Mineral processing, Construction materials, Dairy, Agro-processing, Diversified Tourism
Pharmaceuticals, Chemical products (including fertilizers)
Construction materials, Bio based chemicals & other hi-tech industries
Commodities & Services
Processing & Value Addition
Low tech Manufacturing
Medium to hi-tech manufacturing
Diversification & Value Addition
2010
2015
2020
10 YEARS CLUSTER PROGRESSION LADDER
National Industrial
Policy Vision
Industrial Sub Sector Master Plan for Biochemical Industries
Out of 1.7 Billion USD of import the sector related goods contribution was 10.5%
39.92%
8.98% 4.17%
0.61% 0.26% 0.34% 0.03%
26.45%
6.95% 2.67%
7.91% 6.71% 1.08% 0.08%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
FoodUnprocessed
Food Processesd FMCG Beverage(Alcholic)
Beverage (Non-alcholic)
Agriculture andFertlizers
Pharmaceuticals
% Share in Informal Exports % Share in Formal Exports
Export – related industries
Bio Chemical Sector Potential in Rwanda
Out of 620 Million of export, the sector related contributed 27%
Source: UN Comtrade; 2012
Source: EAC Trade HB; 2013
Import – related industries
Industrial Sub Sector Master Plan for Biochemical Industries
Existing Industries using Bio Based Products - Rwanda
Drugs Installed Capacity
Tablets 64,000,000 units
Suspension Syrup 20,000000 L
Pomade 10 Tons
Infusion 600,000 L
Biomedical Center
Essential Oil Production
Name of Factory/ Location Installed Capacity
Ikirezi Natural products located in Kirehe
10 l/ day
Pyrethrum Processing
Name of Factory/ Location Installed Capacity
Horizon SOPYRWA in Musanze 50 MT of refined product/ year
Rwanda Biomedical Center/ Production located in Huye District is a unique factory producing human drugs in
Rwanda.
Produced from Geranium, patchouli and lemon Grass
Land under Pyrethrum has increased from 2400 ha in 2007/
2008 to 3300 ha Yield is 250 kg/ ha
Industrial Sub Sector Master Plan for Biochemical Industries
Infrastructure & Resources Requirement for Biochemical
What type of resources needed for Biochemical Sub Sector?
What resources Rwanda has to support Biochemical Sub Sector?
Infrastructure: Accessibility, Core Infrastructure, communication system and services
13,000km Road Network
562MW by 2017 from 110.8MW (Gov. Vision)
2,300km Optical fiber cable network
Human Resources: skilled and unskilled, labors costs
Current Labor Force - 53%
Fast growing working populations (WB)
Working-age populations to be up by 20% by 2020 (UN) & ~67% by 2050 (WB)
Focus on Technical Vocational Training Programs
Knowledge Resources: scientific knowledge bases and R&D data bases
3% of GDP to be invested in Science & Technology in next 5 yrs (1.6% at present)
To double student enrollment rates for science, technology, engineering and math (STEM)
Capital Resources: sources of investment funds, financial costs
Among 25 fastest growing economies
Sustained average GDP growth rate of 8% p.a
Competitive place to do business in East Africa (Global Competitive Index Report 2013-2014)
Industrial Sub Sector Master Plan for Biochemical Industries
MASTER PLAN OF BIOCHEMICAL SUB SECTOR
Industrial Sub Sector Master Plan for Biochemical Industries
A master plan is an evolving, long term planning document which establishes the framework reflecting a clear vision created and adopted in an open process
RWANDA BIOCHEMICAL SUBSECTOR MASTER PLAN
Types of Industrial Master Plan
Sector Specific Master Plan
Issue Specific Master Plan
Regional Master Plan
Master Plan of Biochemical Sub Sector
COMPONENTS OF SUB SECTOR MASTER PLAN
Policy Intervention
Situational Analysis
Master Plan Targets
Funding & Project Identification
Institutional Mechanism
Proposed Intervention
Source Identification Feedstock Availability Resource Mapping
Roadmap for Development
Bio Industrial Processing Manufacturing Potential Bio Refinery Development
Industrial Sub Sector Master Plan for Biochemical Industries
Market & Consumers
Agriculture & Forestry
Physical, chemical,
thermal etc.
Chemical catalysis
Biotechnology
Purification, Formulation
etc.
Industrial Growth, up-gradation, modernization -BIOCHEMICAL SUB SECTOR IN RWANDA
Master Plan Targets for Biochemical Sub Sector in Rwanda
Potential Biomass
Resources
Pre Treatment
Conversion &/ or Extraction
Process
Downstream Processing
End Product
SOURCE IDENTIFICATION
BIO INDUSTRIAL PROCESSING DEVELOPMENT
SALES & MARKETING
Industrial Sub Sector Master Plan for Biochemical Industries
Vision – Mission
SECTOR VISION
Facilitating innovation investment and growth of bio chemical industry through sustainable and environment friendly means with a view to promote value addition and reduce import dependency.
SECTOR MISSION
• Facilitate successful demonstration projects
• Funding research and development
• Technical capacity building
• Facilitate technology transfer
• Provision of fiscal incentives
• Designing implementable action plan
Drawing Context From INDUSTRIAL MASTER PLAN 2009-2020
Industrial Sub Sector Master Plan for Biochemical Industries
What Shall the Master Plan Address
1
Identify of present resource base for the sector development
Potential product profiling from available resource base
Requirements for setting up of demonstrations projects
Materializing the available policy structures for sector promotion
Assessment of sector SWOT and recommending necessary interventions and strategies
2
3
4
5
Estimating allocation for sector development 6
Industrial Sub Sector Master Plan for Biochemical Industries
Short Term
Medium Term
Long Term
Development Phasing
2014 2016 2020 2030
Resource Assessment
& Spatial Planning
Process Development
Market
Research & Development R&D Programme focus on use of new raw materials & new technology
Skills Enhancement
Resource Mapping &
Detail Survey plan
Development of Spatial Planning
Demonstration Projects
Development of Bio Refinery
Business Plan & Marketing strategy
Export
Domestic Market
Demonstration of new manufacturing Process
Implementation Plan & Financial Plan
Enabling Policy
Branding
Industrial Sub Sector Master Plan for Biochemical Industries
Research & Development
Feedstock Development
Technology Development & Manufacturing
Scale up
Commercial Manufacturing
/ Market
Government
Venture Capital
Multilateral / Bilateral Funding
Government Facilitated Debt
Public Private Partnership
Project Identification & Funding Source
Credit (Debt) Markets Funding
Projects Key:
Industrial Sub Sector Master Plan for Biochemical Industries
Forest Category
Forest Species Total Forest Cover (ha)
%
Natural Forest
Closed Natural Forest
112,077.53 16.64
Degraded Natural Forest
11,463.58 1.70
Wooded Savannah
943.23 0.14
Bamboo Stand 1,654.41 0.25 Scrubland 260,640.33 38.69
Forest Plantation
Eucalyptus 256,105.39 38.02 Pinus 17,793.34 2.64 Callitris 957.56 0.14 Cypress 212.60 0.03 Grevilea 411.36 0.06 Jacaranda 104.58 0.02 Alnus 78.15 0.01 Black Wattle 7.34 0.00 Melanoxylon 979.04 0.15 Maesopsis 4.45 0.00 Arboretum 263.64 0.04 Mixed 8,462.14 1.26 Others 1,477.65 0.22
TOTAL 673,636.33 100
Major Crops Crop
Production (Season A)
Crop Production (Season B)
TOTAL
Sorghum 12,835 144,658 157,493 Maize 505,887 161,947 667,834 Wheat 14,392 55,744 70,136 Rice 41,787 51,959 93,746 Ordinary Beans 64,589
51,055 115,644
Climbing Beans
189,362 133,230 322,592
Peas 16,271 11,607 27,878 Groundnuts 7,597 6,817 14,414 Soya 11,717 13,121 24,838 Banana 1,654,150 1,637,703 3,291,853 Irish Potato 1,432,045 808,670 2,240,715 Sweet Potato
500,049 581,174 1,081,223
Yam 56,027 77,310 133,337 Taro 1,371 37,365 38,736 Cassava 1,306,014 1,642,106 2,948,120 Vegetables 197,149 287,681 484,830 Fruits 123,789 335,085 458,874
Situational Analysis: Feedstock Availability for Biochemical Sector
Agric
ultu
re R
esou
rce
Fore
st R
esou
rce
Industrial Sub Sector Master Plan for Biochemical Industries
Plants Species Uses
Monechma subsessile (Oliv.) C.B. Clarke Acne, cough, dehydration
Cyathula uncinulata (Schrad.) Schinz Dehydration, diarrhoea, wounds
Caucalis incognita (Norman) Heywood et Jury -
Aspilia pluriseta Schweinf. Kwashiorkor, worms, wounds
Berkheya spekeana Oliv. Anthrax, cough
Bidens pilosa L. Furuncle, hepatitis, otitis, wounds
Guizotia scabra (Vis.) Chiov. Agalactia, gonorrhoea, hepatitis
Microglossa pyrifolia (Lam.) Kuntze Cough, elephantiasis, wounds
Senecio maranguensis O. Hoffm. Cough, otitis, wounds
Spilanthes mauritiana (Rich. et Pers.) DC. Malaria, pneumonia, tonsillitis
Tagetes minuta L. Impotence, toothache
Tithonia diversifolia (Hemsl.) A. Gray Ascariasis, diarrhoea
Vernonia amygdalina Del. Ascariasis, hepatitis, malaria
Vernonia miombicolaWild Gonorrhoea, malaria, worms
Cassia didymobotrya Fresen. Ascariasis, neuropsychopathy
Raw Materials for Medicinal Plants
Situational Analysis: Feedstock Availability for Biochemical Sector
Industrial Sub Sector Master Plan for Biochemical Industries
Plants Species Uses
Chenopodium ugandae (Aellen) Aellen Eczema, hepatitis, snake bite
Kalanchoe crenata (Andr.) Haw. Otitis, skin diseases
Clutia abyssinica Jaub. et Spach Abortifacient, gonorrhoea
Macaranga kilimandscharica Pax Afterpains
Eriosema montanum Baker f. Conjunctivitis, cough, snake bite
Indigofera arrecta Hochst. ex A. Rich Emetic, furuncle, scabies
Hypericum revolutum Vaml. Cough, respiratory diseases
Coleus kilimandschari Gürke Cough, worms
Leonotis nepetaefolia R.Br. Hepatitis, pneumonia, wounds
Hibiscus fuscus Garcke Diarrhoea, pneumonia, sprain
Dissotis throthae Gilg Diarrhoea, wounds
Sesamum angolenseWelw Skin diseases
Phytolacca dodecandra l’Hérit Emetic, otitis, pneumonia
Rumex bequaertii De Wild Furuncle, kwashiorkor, worms
Clematis hirsuta Per. et Guill. Var. hirsuta Abortifacient, urinary diseases
Raw Materials for Medicinal Plants
Situational Analysis: Feedstock Availability for Biochemical Sector
Industrial Sub Sector Master Plan for Biochemical Industries
Plants Species Uses
Pavetta ternifolia (Oliv.) Hiern Skin diseases, worms
Pentas longiflora Oliver Fever, worms
Virectaria major (Schumann) verdc. Eye diseases, wounds
Triumfetta rhomboïdea Jacq. Abortifacient, snake bite
Clerodendrum myricoides (Hochst.) R.Br. ex Vatke Constipation, hepatitis, syphilis
Lantana trifolia L. Gonorrhoea, heart failure
Raw Materials for Medicinal Plants
Plants Yield Biochemical Product Uses
Eucalyptus 200 kg per ha Essential Oils
Medicinal products and used in cleaners and detergents, inhalants and other medicines and aromatherapy.
Geranium 20-30 kg per ha Essential Oils
Perfumery, cosmetics- higher quality soaps, aromatherapy
Pyrethrum 2.05 Tons per ha Essential Oils Sprays for Mosquitoes, Household, Livestock and Crops Pests.
Lemongrass 50-300 kg of oil per ha Essential Oils Cosmetics, perfumery
Raw Materials for Essential Oils
Situational Analysis: Feedstock Availability for Biochemical Sector
Industrial Sub Sector Master Plan for Biochemical Industries
33.15%
15.79%
1.82% 1.55%
26.40%
16.28%
5.01%
Afforested areas Vs Total Forest (%) Humid NaturalForests
DegradedNatural Forests
Bamboos
Savannahs
Plantation ofEucalyptus
YoungPlantation ofEucalyptus
Situational Analysis: Resource Mapping
Banana 27.04%
Cassava 24.22%
Irish Potato 18.41%
Sweet Potato 8.88%
Grains 8.13%
Others 13.32%
Existing Resource - Rwanda
Eucalyptus & Pinus together accounts for almost half of afforested area (Suitable for Biochemical Production)
FOREST BASED RESOURCES
Cassava, Banana, Sweet Potato, Irish Potato, Cereals/ grains, Coffee, Fruits & Vegetables are major crops / Agricultural products
Focus on Value added products to be derived from Agricultural Residues suitable for Biochemical Production
AGRO BASED RESOURCES
Industrial Sub Sector Master Plan for Biochemical Industries
Forest based Biochemical
Potential Industries
Agro –Residue based Biochemical
Eucalyptus Tree: Chemical composition from Eucalyptus oil & Phenolic rich extract. Pinus Trees: Oleoresin - turpentine (mono & sesquiterpenes) & rosin (diterpenes)
- Pharmaceuticals Industries
- Leather Tanning Industries
- Used in Solvents - Paints - Varnishes - Flavor &
fragrance - Food Industry - Disinfectants - Synthetic
Rubber - Coating etc.
Banana: Lactic Acid Cassava: Citric Acid, Furmaric Acid, Aflaxtoxins Grains: Citric Acid, Lactic Acid Irish Potato & Sweet Potato: Citric Acid & Oxalic Acid
Potential industries
- Food Industry - Beverages - Cosmetics - Pharmaceuticals - Adhesives - Electronic
Chemical Emulsifiers
- Industrial Chemicals
- Plastics - Solvents
Situational Analysis: Biochemical Resource & Potential Industries
AGRO BASED RESOURCES FOREST BASED RESOURCES
COMMERCIAL CROP RESOURCES Coffee: Citric Acid Pyrethrum: Insecticide
Industrial Sub Sector Master Plan for Biochemical Industries
MAJOR SPECIES
BIO-CHEMICAL POTENTIAL
Eucalyptus Tree
Chemical composition of Eucalyptus oil - a-pinene, b-pinene, a-phellandrene, 1,8-cineole, limonene, terpinen-4-ol, aromadendrene, epiglobulol, piperitone and globulol. Phenolic-rich extract (total phenolic compounds (TPC))
Pinus trees (Pine)
Oleoresin - turpentine (mono & sesquiterpenes) & rosin (diterpenes)
Pinus (Pine) (Producing Districts)
Eucalyptus (Producing Districts)
DISTRICTS OF RWANDA
FOREST BASED BIOCHEMICAL POTENTIAL
Assurance of reliable supply is among the most critical factor for cost effective production of Bio based chemicals & biofuels
Situational Analysis: District Resource Mapping
256,000 Ha under Eucalyptus – 38% of Forest Cover
18,000 Ha under Pine – 3% of Forest Cover
Industrial Sub Sector Master Plan for Biochemical Industries
AGRICULTURE PLANT/ CROP
(Producing Districts)
BIOCHEMICAL POTENTIAL/
DERIVATIVES/ PRODUCTS
Agricultural Species
Cassava Citric Acid, Lactic Acid, Furmaric Acid, Aflaxtoxins
Sweet Potato / Irish Potato
Citric Acid, Oxalic Acid
Banana Lactic Acid
PLANT/ CROP RESIDUE BASED BIOCHEMICAL POTENTIAL CASSAVA (Producing Districts)
SWEET POTATO (Producing Districts)
IRISH POTATO (Producing Districts)
BANANA (Producing Districts)
Situational Analysis: District Resource Mapping
Cassava contributes 24% of the major crops >>> 2.9 million MT
Sweet / Irish Potato contributes 27% of the major crops >>> 3.3 million MT
Banana contributes 27% of the major crops >>> 3.2 million MT
Industrial Sub Sector Master Plan for Biochemical Industries
AGRICULTURE PLANT/ CROP (Producing Districts)
BIOCHEMICAL POTENTIAL/ DERIVATIVES/ PRODUCTS
Agricultural Species Cereals/ grains Citric Acid, Lactic Acid Commercial Crops Coffee Citric Acid Agricultural Species Fruits & Vegetables Citric Acid, Oxalic Acid
PLANT/ CROP RESIDUE BASED BIOCHEMICAL POTENTIAL
GRAINS (Producing Districts)
COFFEE (Producing Districts)
FRUITS & VEGETABLES (Producing Districts)
Situational Analysis: District Resource Mapping
Industrial Sub Sector Master Plan for Biochemical Industries
Situational Analysis: District Resource Mapping
Industrial Sub Sector Master Plan for Biochemical Industries
Sl. District Name Sl. District Name 1 Bugesera district 15 Nyabihu district 2 Gatsibo district 16 Nyamasheke district 3 Kayonza district 17 Rubavu district 4 Kirehe district 18 Rusizi district 5 Ngoma district 19 Rutsiro district 6 Nyagatare district 20 Gisagara district 7 Ramayana district 21 Huye district 8 Burera district 22 Kamonyi district 9 Gakenke district 23 Muhanga district
10 Gicumbi district 24 Nyamagabe district 11 Musanze district 25 Nyanza district 12 Rulindo district 26 Nyaruguru district 13 Karongi district 27 Ruhango district 14 Ngororero district 28 Kigali city
High Priority Districts
Lower order priority
Biochemical Cluster Identification** **Based on study of District wise Agro-forestry resources, Production potential, and existing SME clusters
Rwandan Bio-chemical Cluster Identified
Top Identified District For
Potential Bio Chemical Cluster: Nyamasheke Karongi Ngororero Bugesera Gatsibo Kirehe Kamoniye Nyanza Ruhango
Industrial Sub Sector Master Plan for Biochemical Industries
AGRO BASED RESIDUES: LACTIC ACID PRODUCTION ESTIMATE PRODUCTION OF LACTIC ACID
BANANA 3.3
million Ha
17 Million
Tons (Stem)
LACTIC ACID
185 Tons per year of Lactic Acid
80 Tons per
year of Lactic Acid
AGRO COVER
BIOCHEMICAL EXTRACT (FERMENTATION &
CHEMICAL SYNTHESIS)
64 G PER KG
RESIDUES ESTIMATE
GRAINS 0.24
million Ha
0.8 million
Tons
LACTIC ACID
7 Tons per year of Lactic
Acid
3 Tons per
year of lactic Acid
AGRO COVER
BIOCHEMICAL EXTRACT (FERMENTATION &
CHEMICAL SYNTHESIS)
84 G PER KG
RESIDUES ESTIMATE
70% Residues 30% Residues
Bio Chemicals Manufacturing Potentials for Rwanda
MARKET PRICE OF LACTIC ACID = USD 500 -1000 PER TON RWANDA IMPORT = 5 TON OF LACTIC ACID (FROM BURUNDI & UGANDA)
70% Residues 30% Residues
Source: UN ComTrade 2013
Industrial Sub Sector Master Plan for Biochemical Industries
CASSAVA 2,948,120 Ha
430,970 Tons
CITRIC ACID
5 Tons per year of Citric
Acid
2 Tons per
year of Citric Acid
AGRO COVER
BIOCHEMICAL EXTRACT (MICROBIAL
FERMENTATION)
70 G PER KG
RESIDUES ESTIMATE
AGRO BASED RESIDUES: CITRIC ACID PRODUCTION ESTIMATE PRODUCTION OF CITRIC ACID
MARKET PRICE OF CITRIC ACID = USD 800 -1000 PER TON RWANDA IMPORT = 40 TON OF CITRIC ACID (FROM CHINA, INDIA, KENYA & GERMANY)
COFFEE HUSK
33,000Ha
7674 Tons
CITRIC ACID
1 Tons per year of Citric
Acid
0.3 Tons per
year of Citric Acid
LAND COVER
BIOCHEMICAL EXTRACT (MICROBIAL
FERMENTATION)
50 G PER KG
RESIDUES ESTIMATE
70% Residues 30% Residues
70% Residues 30% Residues
Source: UN ComTrade 2013
Bio Chemicals Manufacturing Potentials for Rwanda
Industrial Sub Sector Master Plan for Biochemical Industries
EUCALYPTUS TREE
256,103 Ha
EUCALYPTUS OIL
597 Tons per year
256 Tons per
year
LAND COVER BIOCHEMICAL EXTRACT
20-175 KG PER HA/ YEAR
PINUS TREE 17,793 Ha PINE OIL 170 Tons
per year 120 Tons per year
LAND COVER BIOCHEMICAL EXTRACT
115 KG PER ACRE/ YEAR
70% 30%
FOREST BASED RESIDUES: ESSENTIAL OILS PRODUCTION ESTIMATE PRODUCTION OF ESSENTIAL OILS
70% 30%
MARKET PRICE OF ESSENTIAL OILS = USD 12 - 50 PER KG RWANDA IMPORT Essential oils for Perfumes & cosmetics = 10 million USD Essential oils of Resinoids & Oleoresins = 59 thousand USD
Source: UN ComTrade 2013
Bio Chemicals Manufacturing Potentials for Rwanda
Industrial Sub Sector Master Plan for Biochemical Industries
Selected Biochemical - Rwanda
Lactic Acid Cereals/ grains
Banana
Phenolic extracts Eucalyptus Tree
Citric Acid
Coffee
Cereals/ grains
Fruits & Vegetables
Irish Potato
Sweet Potato
Cassava
Oxalic Acid
Feedstock Source Selected Building Blocks
C6
C6
C3
C3
Sweet Potato
Irish Potato
Fruits & Vegetables
Industrial Sub Sector Master Plan for Biochemical Industries
Lactic Acid
Acrylates, L-Propylene
glycol, Dioxanes,
Polyesters, Lactide
Green solvents
Specialty chemical intermediate
Polyacrylates
Polyacrylamides
Phthalate polyesters
[Industrial] - Corrosion inhibitors, dust control, boiler water treatment, gas purification, specialty lubricants, hoses
[Safe Food Supply] - Food packaging, preservatives, fertilizers, pesticides, beverage bottles, beverage, vitamins
[Environment] Water chemicals, flocculants, cleaners and detergents
[Textiles] -Carpets, Fibers, fabrics, fabric coatings, foam cushions, upholstery,
[Transportation] - Fuels, oxygenates, anti-freeze, wiper fluids molded plastics, car seats, belts, corrosion
[Housing] - Paints, resins, siding, insulation, coatings, varnishes, flame retardants, adhesives,
Cereals/ grains
Banana
Phenolic extracts
Specialty Chemical Intermediate
Polycarbonates
Phenol-formaldehyde Resins
Eucalyptus Tree
Citric Acid 1,5-
pentanediol, itaconic
derivatives, pyrrolidones,
esters
Phthalate polyesters
Specialty Chemical Intermediate
Coffee
Cereals/ grains
Fruits & Vegetables
Irish Potato
Sweet Potato
Cassava
[Communication] - Molded plastics, computer casings, optical fiber coatings
[Health and Hygiene] - Plastic, cosmetics, detergents, pharmaceuticals, lotion, dental products, disinfectants
[Recreation] - Footgear, Protective equipment, bicycle parts & tires, Wet suits, Tapes-CD's, Golf equipment etc.
Oxalic Acid
Chelator & Reagent
Feedstock Source
Building Blocks
Secondary Chemicals
Intermediates
Prod
ucts
/Use
s
Diversified industrial sectors, end use and products.
RWANDA
C6
C6
C3
C3
Bio-based Potential Industries - Rwanda
Industrial Sub Sector Master Plan for Biochemical Industries
Bio-refinery Process
Industrial Sub Sector Master Plan for Biochemical Industries
Value Chains and Capital Investment
Feedstock Conversion Technology Output
Size and Capex Estimate (New)
Sugar Based Biochemical Integrated Bio refinery (applicable for whole crop and green) Must Have
Good to Have
• Agricultural residues e.g. harvest residue, bagasse, wheat straw
• Hard wood/processed residue from paper industry
• Municipal waste • Algae • Energy crop
• Biological enzymatic conversion
• Steam explosion • Waste treatment
• Thermochemical route • Biological acidic • Combustion • Gasification • Fermentation • Onsite enzyme production
• Fine chemicals • Bulk Chemicals • Heat & Power • Materials • Biofuels
• 10 MT of dry biomass/day
• $ 15 - 40 Million
• Additional feedstock + $ 5 – 15 Million
Thermochemical integrated bio refinery (applicable for all three types)
Must Have
Good to Have
• Forest resources • Black liquor
• Multiple wood types
• Biological enzymatic conversion
• Pyrolysis • Gasification
• Integrated biochemical
conversion
• Fibers • Chemicals • Materials • Biofuels
• 100 MT of dry biomass/day
• $ 150-200 Million
Industrial Sub Sector Master Plan for Biochemical Industries
Demonstration Project Governing Parameters
Feedstock cost, transportation costs, synergies from co-location, funding & Regulation are key factors for the location decisions
Industrial Sub Sector Master Plan for Biochemical Industries
DOMESTIC POLICY ENVIRONMENT
Growth Fiscal Reforms
Public Administration
Foreign Trade
Finance Sector Development
Labor Markets
National Industrial Policy 2010 Economic
Development and Poverty Reduction
Strategy Customer and
Consumer Protection Policy,
2010
Rwanda Trade Policy, 2010
Rwanda SME Policy and Strategy (2010)
Competitive industrial & advanced service sector & increasing off-farm jobs
Strategic infrastructure investment for exports, increased private sector financing
To promote fair competition
Growing sustainable & diversified quality products and services for trading
Designed to complement a set of existing policies/strategies aim to increase non-farm employment& technical skills
Policy Intervention
Recommendations
Support promotion of demonstration projects
Facilitate government to infuse capital investment for bio refineries
Generate incentive & entry facilitation mechanism
Update quality control measures & develop standards
Facilitation cultivation of identified feedstock
Liberalize tax control & facilitate with affordable credit
Industrial Sub Sector Master Plan for Biochemical Industries
Develop value chain
Developing linkages with domestic suppliers
Promote alternate sources of energy
Connecting farms, food processing hubs & SEZ/Industrial Parks
Land allocation for industries through PPPs
Development of Rwanda Capital Market Mobilize long term funding for industrial development
Focus courses on management and technical needs Increase scholarships to international higher learning institutions
Strengthen effectiveness of measures against Technical Barriers to Trades (TBTs) Promote domestic product’s compliance with international and EAC standards
Enforce establishment of industry specific environment management
RAW MATERIALS TRANSPORT
LAND & ENERGY CAPITAL HUMAN RESOURCES
ENVIRONMENTAL SUSTAINABILITY
TRADE FACILITATION Provide Performance based time bound incentive packages
REGULATORY ENVIRONMENT
Conduct Regulatory Impact Assessments prior to implementing
INDUSTRY
Policy Intervention - National Industrial Policy 2010
Recommendations
Subsidizing the input costs
Promotion of local talent and employability
Strong standards
Affordable land and power
Implementing environmental control
Feedstock assurance and availability
Industrial Sub Sector Master Plan for Biochemical Industries
Lack of Entrepreneur
Limited Skills
High cost of doing business
Lack of access to finance
Access to market information
Lack of Business Development Services
CONSTRAINTS RECOMMENDATIONS
Promote entrepreneurship
Facilitate SME access to development services
Set access to finance for SMEs
Simplify fiscal & regulatory framework for SME
Develop appropriate institutional framework - SME
HOW TO IMPLEMENT THE RECOMMENDATIONS
Support promotion of local brands
Access to affordable loans
Promoting NBFC, Agri-Banks etc.
Fiscal & non-fiscal incentives to SMEs
Facilitating access to basic services, trade support, market access etc.
Rwandan Small and Medium Enterprise (SME) Policy & Strategy (2010) – PPP
Create new business models
Implement sustainable management practices
Mobilizing an increasing supply
SUSTAINABLE PPP DEVELOPMENT
Refining of feedstock into its valuable components
Developing innovative products
Share risk of development of innovative biochemical products
Support for research of a more "pre-competitive nature" Meet major challenges of translating research to products
Make the development of the whole value chain attractive
CLUSTER DEVELOPMENT & PPP PUSH-PULL FACTORS OF PPP
Regulatory Framework Conditions
Funding of demonstration plant
Subsidies for agricultural sector
Tax incentives for investment
Standards-Related Issues
Industrial Sub Sector Master Plan for Biochemical Industries
SMEs Participation - Business cycle
Industrial Sub Sector Master Plan for Biochemical Industries
EXISTING POLICIES AND STRATEGIES
• Rwanda Industrial Policy
• National Construction Industry Policy
• Industrial Master Plan
• SEZ Policy
• Economic Development and Poverty Reduction strategy (EDPRS)
MINAGRI MININFRA MINECOFIN EWSA RURA MINIRENA MINYICT MINISANTE MINALOC MINEDUC
INSTITUTIONAL STAKEHOLDERS
OTHER STAKEHOLDERS
District Executive Committee
Executive Secretary of the District
Joint Action Development Forum (JADF)
Working Group in charge of Planning
Technicians of the District
Sectors and CDC
Cells and CDC
Villages (Imidugudu) and CDC
Local Organizations of Civil Society
DRIVERS
SPECIFIC STRATEGIES
Enlarge economic scale and improve the competitiveness
Adjust the product structure Improve production technology level, especially the level of downstream technology Integrate industries, universities and research institutions
Improve the quality of the employees
Strengthen IP protection
Institutional Capacity Building
Industrial Sub Sector Master Plan for Biochemical Industries
STATUS, CHALLENGES & OPPORTUNITIES
31
2012
1
1993
58,000
1995-2012
1,962
1963-94
HIGHER EDUCATION: KEY FIGURES
No. of University
Graduates
73,000
Present Enrolment in Higher Education
Enrolment in Public
Institutions 34,000
Present
CHALLENGES OPPORTUNITIES
• Sector still in the nascent stage - Lack of knowhow
• Youth unemployment
• Low Remunerations
• Lack of skilled workforce
• Dependent on foreign expertise & Skill
• Immigration of skilled workforce to fill the Skill Gap
• Youth Entrepreneurs having little access to formal banking institutions
• Low registration rate of local professionals (Engineers)
• One of the fastest-growing working populations
• Current Labor Force - 53% of the total population
• Young Labor force
• Large Existing Market Base -Hub for rapidly integrating East African Countries
• Industrialization & human resource development - part of Govt. of Rwanda’s strategy for achieving Vision 2020.
• Focuses on Knowledge Based Economy -through IT, Application of Science & World Class Institutions (Vision 2020 )
STATUS
Human Resource Requirements - Rwanda
Industrial Sub Sector Master Plan for Biochemical Industries
HUMAN RESOURCE DEVELOPMENT STRATEGY - RWANDA
Need for sector specific (Biochemical-Biotechnology) Human Resource policies
Rwanda should capitalize on large working age population base
Target Young population for advanced Technical skill development
Rwanda needs to be positioned as Knowledge hub, through institutions
EMPLOYMENT GENERATION EQUITABLE INCOME DISTRIBUTION
• Direct employment opportunities for the locals
• Indirect Employment - backward and forward industrial linkages
• Increased industrial share in the country’s GDP
• Contributing to higher education standards
HUMAN CAPITAL DEVELOPMENT
• Narrowing down income disparity among the population
• Trainings and workshops for development of skilled labor
• Competitive & efficient industrial policy for dynamic labor markets
• Improving quality of traineeships
• Investments in skills & training in addition to structural change
Human Resource Development Interventions
Industrial Sub Sector Master Plan for Biochemical Industries
Key institutes with Agri-biotech research capacity (Africa)
Country
Key institutes with agri-biotech
research capacity
Biotech research projects/programmes
Area of application Crop Forestry
South Africa 10 58 26 Nigeria 7 72 0 Kenya 6 31 4 Zimbabwe 6 27 0 Ghana 6 25 3 Uganda 4 21 1 Ethiopia 4 9 7 Tanzania 4 13 1 DR Congo 2 6 4 Malawi 4 9 1 Namibia 3
Rwanda
• Support efforts to Cooperate Internationally
• Gathering expertise and Promoting Engagement
• Involving Industry, researchers & academia at national and sub-regional level
INTERVENTION
Institutional Capacity Building – Regional Scenario
Industrial Sub Sector Master Plan for Biochemical Industries
Bio chemical route stays expensive
Existing chemical industries not combatable for bio-chemicals
Higher costs in terms of investment, operation and R&D
Existing worldwide credit crunch
CHALLENGES FACED
Strong agriculture sector
Diversity in biomass & crops
Existence of bio-chemical centres
No big private players in industrial biotechnology or related R&D
Lack of intra-industry collaboration
Lack of awareness of biochemical
Bioenergy is center of all studies
Fluctuations in demand & offer of biomass Food crops already in major demand
Increased demand for wood biomass
Establishment of common strategy on bio based economy Involvement of different districts administration & initiatives
To create a green economy
Growing interest from chemical industry in renewable resources
Transport of final products
Possible competition between bio based sectors
Lack of strong supporting policies
Lack of a certification & labelling
STRE
GN
TH
WEAKN
ESS
OPP
ORT
UN
ITIE
S
THREATS
FEEDSTOCK
POLICIES
INDUSTRY
OTHER FACTORS
Sector S W O T
Industrial Sub Sector Master Plan for Biochemical Industries
RECOMMENDATION & PROPOSED INTERVENTIONS
Industrial Sub Sector Master Plan for Biochemical Industries PP
P
Bio-based Industrial Strengthening Strategy: Recommendations
NEED FOR AN INTEGRATED & HOLISTIC APPROACH
Regional Integrated Strategy
Cooperation - districts & various central departments
Organize ‘one office’ for getting information
1 RESEARCH & INNOVATION
Create ‘Regional Bio based Sub Sector Research & Innovation Task Force’
Finance interdisciplinary research projects
Optimize knowledge transfer
2 Attain leadership in conversion process technologies Competitive feedstock
supply Integration of bio
based industries Demonstration
Programmes
FEEDSTOCK SUPPLY & AVAILABILITY
Support renewable feedstock for industrial use
Develop programmes to increase agro productivity
Invest in infrastructure & logistics
3 STIMULATING PRODUCTION & CONSUMPTION
Develop specific grants & loans for developing new technologies
Incentives for pioneering commercial production
Develop technical standards & labelling
4 VISIBILITY & AWARENESS
Regional Bio based Subsector
Develop multidisciplinary education & training
Strategy for communication & stakeholder involvement
5
Industrial Sub Sector Master Plan for Biochemical Industries
AGRICULTURE A
• Ensuring Long Term Production
• Innovation in Plant Breeding & Good Agricultural Practice to Achieve Optimal Biomass Supply
• Focus on Post Harvest Handling, Storage, Marketing & Value Addition
• New Agroforestry Business Model
• Link Agroforestry Resource Clusters to Industries & Markets
• Breeding to Improve Feedstock Quality for Biorefinery Application
INFRASTRUCTURE & TECHNOLOGY B
• Infrastructure Gap to be filled
• Regional Integration
• Integrate Industries, Universities and Research Institutions
• Technological Cooperation and Exchanges.
• Interdisciplinary Strategy to be advocated
• Upstream & Downstream Processing with focus on New Separation and Purification Technologies
POLICY LEVEL C
• Establish an Advisory Group, Incl. Member States & Industry
• Analyse Impact of Legislation & Policies: Product-specific Legislation
• Enlarge Economic Scale & Improve Competitiveness
• Establish Network between Public Purchasers of Biobased Products
• Encourage Green Public Procurement - Bio-based Products
• Standardization-Bio-based Products
• Developing Multiple Annual Strategic Roadmaps
• Involvement of Public Authorities & Civil Society from early stage
• Strengthen Intellectual Property Protection
• Communication & Awareness Plan
• Develop & Link to Capital Markets
• Structured Investment
• Strategies to provide higher ROR compared to competition markets
• Financing of SMEs
• Research Funding to develop innovative Bio-based Products and Bio-refineries
• Financing for Translational Research & Demonstration Projects
FINANCIAL D
Biochemical Sector in Rwanda – Proposed Interventions
Industrial Sub Sector Master Plan for Biochemical Industries
THANKYOU
Industrial Sub Sector Master Plan for Biochemical Industries
CHALLENGES
NATIONAL INITIATIVES
INDUSTRY INITIATIVES
COMPANY-LEVEL
INITIATIVES
Domestic Branding
INDIGENIOUS BRANDS
WELL-RECOGNIZED
BRANDS
SUPPORT REQUIRED
MINISTRIES INVOLVED
DIRECT/INDIRECT SUPPORT
Double Tax Deduction
Brand Promotion & Grant for Market Development
Business Planning & Development
Product & Process Improvement
Enhancing Marketing Skills
RDB
MINECOFIN
MINAFFET MINICOM
MINAGRI
MINEAC
Owner-Managed Brands Government-Linked Company (GLC) Brands Acquired Brands Company-Driven Brands
Cohesive strategic responses to the target brand positioning
Brand Value Chain
Identify brand leaders
Support large companies and domestic market leaders
Designate anchor brands to support MSMEs
Introduce governance in brand & marketing
Develop IP in product & service innovations
Identify sub-sectors for brand creation
Facilitate branding in services segment
Support for obtaining branding & marketing
Monitor the impact of brand investments
Inexperience of corporate structures
Absence of brand
Lack of integration of brand support clusters
Lack of R&D
Development of indigenous intellectual property (IP)
Supply chain inefficiency
Limited number of domestic anchor brands
Dependence on foreign brand manufacturers
Limited domestic market