Ecofootprint of Charcoal Production and Its Economic Contribution Towards Rural Livelihoods in Sub-Saharan Africa

Abstract

Charcoal is used in up to 80% of urban households and in small-to medium-scale commercial entities across sub-Saharan Africa (SSA). These provide a ready market which contributes to household income generation, poverty reduction, national development, employment, and development of especially the rural economy. The demand for charcoal as an energy source is mainly driven by urbanization and population growth and also varies with the level of income among other factors. Meanwhile, charcoal production in SSA is mostly by producers in rural areas who are usually scattered and work independently of one another. Their production operations are temporary, and they shift whenever the wood resources dwindle. Charcoal energy footprint has become vital, and calculating the impacts of charcoal production is important in shrinking the ecofootprint. Contribution to rural livelihoods and national economies is significant but grossly undervalued due to the nature of the sector. In 2008, charcoal production and trade contributed US$8 billion and employed seven million people across the region. This was projected that it would be worth US$12 billion by 2030 and employing eight million people. It has an oligopolistic structure whose major players in the value chain are producers, wholesalers, transporters, and retailers. The transporters/wholesalers get as much as four times the income of the producers and more than 10 times that of retailers. The stable urban demand, easy access to forest resources, and low investment cost ensure that 60% of rural household income is from charcoal production and trade in most of the SSA. Production technologies are quite a challenge as they are of low efficiency (10%), thereby putting immense pressure on the natural forests that provide the feedstock. This, in turn, increases the energy footprint due to the reduced carbon sequestration capacity of the SSA woodlands. Hypothetically, production is projected to increase by 73% in 2030 with the fastest growth being in the Central African sub-region of SSA driven by, among other things, an increase in the human population. However, despite its contribution to rural livelihoods, policymakers give the charcoal sector a low priority and nearly zero consideration in planning and the implementation of national or regional energy action plans. Besides, existing policies, if any, are rarely implemented, and are usually governed by a weak regulatory framework. As such, the charcoal sector remains largely informal and less appreciated at both national and regional levels in the SSA.