The paper reviews the progression in biofuels development in Africa focusing on the current situation,
promising feedstock options, potential markets, environmental concerns and existing opportunities.
The paper highlights the gradual development of biofuels in Africa through the first generation and the
prospects of second generation lignocellulosic feedstocks which offer a better option because of the
absence of competition with food security. However, it is argued that the limited uptake of these
innovations is in part due to poor planning and financing arrangements. Suggestions are advanced on
how some of the challenges and opportunities can be exploited including policies that can promote the
development of pro-poor biofuels in order to protect the interest of local farmers while addressing
environmental concerns about carbon footprint in the promotion of biofuels and preservation of
biodiversity. It is also argued that the vast underutilized land in sub-Saharan African present
opportunities that can be realised from the carbon markets through the clean development mechanism.
The paper concludes with a call to facilitate the process of developing modalities for instituting PES
including procedures of the CDM that can accommodate developing countries.