Mozambique diesel riots reported in Western media as “food riots”, fanning anti-biofuels sentiment

A recent uprising in Mozambique that was characterized as a “food riot” in the UK Independent and other international media, was in fact a series of fuel riots, according to local sources. The protests occurred when local drivers called on the government to increase fares by 15 percent after a 30 percent increase in the cost of diesel. Roadblocks of burning tires and dumpsters appeared at bus depots, and men armed with rocks and clubs threatened local drivers.

Riots erupted in Chokwe, in the southern Mozambican province of Gaza, as well as Maputo. Four deaths were reported in the uprising, which resulted in a rollback in the scheduled fuel price increase.

Local observers agreed that there is ongoing concern that the continuing rise of the cost of wheat and consequent rises in the cost of bread might provoke popular disturbances.

President Armando Guebuza of Mozambique said that biofuel development will not dislodge Mozambican farmers from their lands. He said that government policy would require the use of underutilized or empty lands, would avoid using lands used for food production, and that Mozambique will refine its own raw materials.

Mozambique has been rapidly expanding its biofuels capabilities and plans since Brazil and Mozambique signed a cooperation agreement for sharing resources in biofuels production and training.The largest announced project is the launch of the Central African Mining and Exploration Company (CAMEC) biofuel project. CAMEC will invest US$510 million, and in produce 32 Mgy of ethanol from 30,000 hectares of sugar cane. The venture is expected to create 7,000 jobs. The plant is expected to commence operation in 2010. The financing of the plant and surrounding infrastructure was not disclosed.

UK-based Principle Energy said it would invest $250 million in sugar cane ethanol at a facility along the Lucite and Buzi rivers in Mozambique. Also, Principle Capital Holdings said the total project will cost $597 million and includes 20,000 hectares for sugar cane cultivation. Yields are projected at 50% more than the Brazilian average, due to superior soil and climate conditions. Final approval from Mozambique is expected by next month.

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