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


DRAFT MASTER PLAN

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


PROJECT APPROACH &

DELIVERABLE STATUS


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


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


BIOCHEMICAL SECTOR


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


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


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


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



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



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


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


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


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


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


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)


MASTER PLAN OF BIOCHEMICAL SUB SECTOR


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


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


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


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


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


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:


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


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



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




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


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



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


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


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


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)


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


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)



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


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)


Source: UN ComTrade 2013


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






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




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


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


Bio-refinery Process


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


Demonstration Project Governing Parameters

Feedstock cost, transportation costs, synergies from co-location, funding & Regulation are key factors for the location decisions


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


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


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


SMEs Participation - Business cycle


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


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


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


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


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


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


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


THANKYOU


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

september 2014 draft master plan industrial sub sector ... biochem industries masterplan.pdf ·...

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