Unlocking the Potential of Bioethanol- Navigating Consumer Demand, Supply Chains, and Policy Frameworks (Blog #1 of the series)

By Dr Helen Osiolo

As the world transitions toward cleaner and more sustainable energy solutions, bioethanol is emerging as a promising alternative for household cooking. Successfully integrating bioethanol into mainstream use, requires addressing key factors such as consumer demand, supply chain infrastructure, economic viability, marketing strategies, and policy frameworks.

This article, titled “Unlocking the Potential of Bioethanol: Navigating Consumer Demand, Supply Chains, and Policy Frameworks”, examines the multifaceted aspects of bioethanol adoption in Tanzania, as implemented by the United Nations Industrial Development Organization’s (UNIDO) bioethanol and clean cooking program. It draws comparisons with the scaling of Liquefied Petroleum Gas (LPG) and electric cooking, exploring both the opportunities and challenges in expanding bioethanol use from cultural perceptions and consumer trust to logistical and regulatory challenges. This article is the first in a three-part series, “Breaking Barriers, Unlocking Potential: Scaling Bioethanol for a Sustainable Future.” The second article will discuss the crucial role of multi-stakeholder collaboration in advancing bioethanol adoption in Tanzania. The third and final article will analyse the complexities of scaling bioethanol by comparing the strategies of KOKO Networks and UNIDO.

Consumer Demand Dimensions: Understanding the Adoption Barriers

Understanding consumer demand is essential for the successful adoption of cleaner cooking technologies. This section explores key dimensions influencing consumer choices, including cultural preferences in cooking, the persistence of fuel stacking, and supply chain challenges that impact accessibility and reliability.

Cultural influence on cooking preferences strongly affects fuel choices in Tanzania, with many consumers preferring charcoal for its perceived ability to enhance the taste of staple dishes like rice, beans, and stews. In coastal areas like Zanzibar, cooking methods that require a crispy rice crust make charcoal the go-to fuel. Many believe modern alternatives such as bioethanol, LPG, and electric stoves cannot replicate these flavours, slowing their adoption.However, cleaner cooking technologies offer practical solutions. Induction and infrared stoves provide precise temperature control, while Electric Pressure Cookers (EPCs) improve efficiency by reducing both energy consumption and cooking time. Unlike kerosene, bioethanol, LPG, and electric cooking do not leave unpleasant aftertaste. Women, who are the primary household cooks, also appreciate the convenience of modern stoves, which eliminate the need for time-consuming fuel preparation.

Despite increased access to cleaner cooking solutions, most households in Tanzania continue using multiple fuel sources based on cost, reliability, and specific cooking needs. Even those who purchase bioethanol stoves often retain charcoal or kerosene for certain meals or as a backup. Charcoal remains attractive because it is widely available and can be bought in small, affordable quantities. LPG, while effective, suffers from inconsistent supply in the rural areas and air pollution concerns. Electric cooking, though clean and efficient, is sometimes perceived as expensive, with electricity reliability varying across regions. However, technologies such as EPCs, induction stoves, and solar-powered cooking systems are helping reduce dependence on traditional fuels, especially in areas with unreliable grid access.

Bioethanol’s limited availability in Tanzania hinders its adoption. Supply chain disruptions such as Consumer’s Choice Limited (CCL) 2024 failure to maintain its three-month stock, have raised concerns about reliability, discouraging users. Unlike LPG, which has a widespread distribution network, bioethanol’s availability is inconsistent, and consumers struggle to find real-time information on fuel stock. Additionally, maintenance services for bioethanol stoves are not as well-established as those for LPG and electric stoves. Performance concerns persist, with many users requiring live demonstrations to be convinced of bioethanol’s effectiveness.

Supply Chain Dimensions: Overcoming Infrastructure and Distribution Challenges

Tanzania has made progress in promoting clean cooking solutions spearheaded by UNIDO. However, supply chain challenges persist across component production, maintenance, system assembly, distribution, and customer support, affecting accessibility and affordability.

In Tanzania, local manufacturing capacity for bioethanol stoves remains limited, forcing reliance on external suppliers. Initially, bioethanol stoves were imported from Durban, South Africa. To reduce costs, imports later shifted to Nairobi, Kenya. However, regional supply constraints persist. Unlike bioethanol stoves, LPG stoves benefit from stronger distribution networks backed by government incentives. Electric cooking options are growing, but most pressure cookers and induction stoves are imported, increasing costs. Locally assembled battery-integrated cooking systems like those customised for Malawi could offer a promising off-grid solution for Tanzania.

A lack of repair infrastructure is a major challenge, especially for bioethanol stoves. While local repair capacity has improved in Tanzania, major repairs require shipping to centralized manufacturers, causing long delays. Additionally, high costs of bioethanol canister replacements discourage continued use. In contrast to bioethanol, LPG stoves benefit from well-established repair and spare parts networks, ensuring easier maintenance and accessibility. In addition, electric appliances require minimal maintenance, but efforts are being made to strengthen local capacity for repairs. Resources such as the technical guide for electric cooker maintenance and the repair handbook for pressure cookers are available to support local skill development and enhance repair services.

Technical skills shortages in bioethanol stove assembly and maintenance limit local capacity. UNIDO bioethanol and clean cooking program provide training, but dependence on imported components and external expertise remains high, increasing costs. Conversely, LPG and electric cooking technologies benefit from standardized designs, easing market integration.

Bioethanol fuel supply in Dar es Salaam remains inconsistent due to logistical challenges. UNIDO’s policy requiring distributors to maintain months’ worth of bioethanol stock may unintentionally create bottlenecks, further straining supply. This approach may lead to overstocking at distribution points, causing delays and inefficiencies in the distribution process. In contrast, LPG distribution is more established in urban areas, but affordability and last-mile delivery continue to pose significant challenges.

Beyond supply constraints, consumer support also requires strengthening. While a 24/7 call centre is available, gaps in consumer education persist in the bioethanol scaling program. Many users lack guidance on fuel efficiency and proper bioethanol stove handling, while LPG despite being more widely recognized still requires safety awareness initiatives. In contrast, electric cooking appliances, such as induction stoves and electric pressure cookers, require minimal user training but rely on consistent electricity access, which remains a challenge in some areas. To address these challenges, electric cooking campaigns and demonstrations are increasingly being used to promote the benefits of these technologies. These initiatives help educate consumers on the efficiency, safety, and ease of use of electric cooking, while also showcasing how electric cooking appliances can be integrated into daily life.

Barriers to the Economic and Infrastructure Impact of Bioethanol Programs

The growth of bioethanol programs in Tanzania is hindered by barriers such as limited local production capacity, reliance on sugarcane molasses, and weak infrastructure. These challenges create supply bottlenecks and limit scalability, reducing the economic benefits, particularly in rural areas. Additionally, weak linkages with smallholder farmers and limited market access due to underdeveloped retail networks further constrain the sector.

In contrast, LPG and electric cooking technologies require fewer local inputs, with LPG benefiting from established infrastructure for distribution. LPG offers a more immediate economic benefit, thanks to its widespread availability, though it still faces challenges in affordability and last-mile delivery. Electric cooking technologies, while offering clean alternatives, require investments in reliable electricity infrastructure and consumer education. However, both technologies have stronger local economic potential, as they rely on more readily available resources and infrastructure, making them easier to scale and more economically viable in the long term compared to bioethanol.

Marketing Challenges and Digital Strategies for Advancing Bioethanol Cooking

Bioethanol’s adoption as a clean cooking fuel faces financial, cultural, and sustainability challenges. High media costs have shifted marketing to digital platforms, but limited budgets restrict reach. Engaging ambassadors, like chefs, builds trust but is expensive and unsustainable. Misinformation about bioethanol’s efficiency fuels consumer distrust, while cultural resistance and unfamiliarity with bioethanol stoves slow adoption. Live demonstrations help but lack scalability. Women, as primary cooks, require targeted outreach, which demands continuous funding.

Aspirational marketing positions bioethanol as modern and clean, but financial constraints limit large-scale impact. Without sustained public and private investment, growth may stagnate, similar to LPG’s early struggles. However, LPG expanded through subsidies, infrastructure development, and private-sector engagement. Electric cooking has also grown with incentives and grid improvements, overcoming cost and reliability issues. Unlike bioethanol, these alternatives received government backing and structured distribution.

Policy Enabling Environment: The Need for Government Support

Bioethanol holds promise as a clean cooking solution in Tanzania but faces significant regulatory and fiscal challenges. The 18% VAT and high import tariffs drive up costs, making bioethanol less competitive than LPG, which benefits from tax exemptions. Unlike Uganda, where subsidies and carbon financing support bioethanol adoption, Tanzania lacks similar incentives, making it unaffordable for many households.

The recent EAC Bioethanol Symposium emphasizes that regional policy inconsistencies undermine bioethanol’s viability. Kenya’s stricter regulations on imported bioethanol, the reversal of tax exemptions, and the import ban have driven up costs and disrupted cross-border supply chains. Furthermore, differences in bioethanol purity standards (90% vs. 84%) and varying tax structures across East Africa create market inefficiencies and trade barriers.

Bioethanol’s scalability in Tanzania is further constrained by high production costs, weak investment incentives, and regulatory uncertainty. In contrast, Uganda has leveraged carbon financing to offset up to 60% of production costs, strengthening its bioethanol sector, while Tanzania remains at a disadvantage.

Conclusion and Policy Recommendations

Bioethanol can be a transformative clean cooking fuel in Tanzania, but regulatory, fiscal, and market barriers limit its adoption. Strengthening consumer demand, supply chain infrastructure, economic impacts, marketing strategies, and policy frameworks can enhance affordability, accessibility, and long-term viability. These policy recommendations are discussed as follows.

• Cultural adaptation and consumer awareness are key. Bioethanol must align with traditional cooking preferences by replicating familiar flavours and improving efficiency. Targeted campaigns should highlight its convenience, health benefits, and compatibility with local cuisines.
• Fuel security and reduced fuel stacking are critical. Strengthening supply chains will ensure consistent bioethanol availability, reducing reliance on charcoal, kerosene, and LPG. Subsidies and flexible financing, such as Pay-As-You-Go, can enhance affordability and long-term adoption.
• Infrastructure and consumer trust must improve. Expanding distribution, real-time fuel tracking, and better after-sales support will enhance reliability. Consumers need confidence in bioethanol as a dependable and cost-effective option.
• Government support through subsidies, tax cuts, and infrastructure investment is essential. Bioethanol must achieve price parity with LPG and electric cooking to drive broader market adoption.
• Consumer awareness and market expansion require nationwide campaigns to counter misinformation and promote bioethanol’s benefits. Engaging trusted local ambassadors and securing long-term outreach funding are key.
• Fiscal incentives are needed to boost affordability. Lowering or removing the 18% VAT and import tariffs will cut costs and improve competitiveness. Targeted subsidies and carbon financing, modelled after Uganda, can attract investment and support production.
• Harmonizing regional policies and standards will improve bioethanol supply. Aligning purity standards, tax structures, and trade regulations across East Africa, reinstating tax exemptions, and easing import restrictions will enhance market efficiency.
  

Moving Forward

Stay tuned for second blog that will explore how multi-stakeholder coordination has strengthened bioethanol adoption in Tanzania. 

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Featured Image: UNIDO-supported bioethanol production facility in Tanzania, enhancing local supply chains for clean cooking solutions through sustainable fuel processing and workforce development. Photo credit UNIDO.