Pharmaceuticals find more than one solution in ethanol
iSolvents Chemicals
Ethanol is a simple organic molecule found in nature. A hydrocarbon constituted of its bases, carbon, hydrogen, and a hydroxide group introducing oxygen. These three elements are found readily in organic material, yet bound together in a specific conformation as ethanol, bringing us a compound set apart as a multifunctional resource. To only list a few applications explored in Africa: biofuel, solvent, detergent, and antiseptic – proves its significance as a commodity in our day. Usually, the value of a compound is closely linked to its availability. If it’s rare, it’s valuable. But not so with ethanol. It remains a valuable stock in the market despite its abundance. Some African countries are on the cusp of introducing ethanol as a motor-fuel, showing that it’s no longer considered a luxury good traced at low concentrations in bottles of drink.
However, the transcendence of ethanol from beverage to any higher purpose is not straight-forward. It requires the recognition of a starting point in manufacture and procurement, only then can questions of utility and purpose be asked. Most of Africa is home to third world countries so it comes with no shock that the starting point is the sugarcane industry. Fermentation is a standard industrial process yielded and controlled to produce ethanol. Glucose from the sugar is broken down to organic ethanol which can be further distilled to produce higher concentrations for use in industry.
Economic perspectives from Malawi and Kenya
To get a lay of the ethanol economy in Sub Saharan Africa we’ll look at Malawi and Kenya, each offering unique insight on how ethanol trade effects various industries, specifically the pharmaceutical industry. The production of ethanol in Malawi and Kenya is founded on the agricultural sector with sugarcane being the feedstock to make ethanol.
Malawi has two sugar production sites in Dwangwa and Nchalo which together sustain some parts of the country’s energy sectors. Having fully integrated biofuels into their energy system with some of the fuel blended with 20% ethanol. Any ethanol that is domestically produced is syphoned to motor-fuel blending, paying great dividends to the transport sector, but hamstringing other industries such as the pharmaceutical industry. EthCo is a distillation company in Nchalo that entered the pharmaceutical market with their ethanol, but it cannot be sustained with the growing demand for ethanol fuel.
Sugarcane is the highest yield in agriculture for Kenya – which has lent itself well to an established ethanol trade. 56 million litres of ethanol is produced annually in western Kenya in the province of Nyanza. Of this, a significant proportion is dedicated to pharmaceuticals. Kenya is one of the leading countries in Africa with the 5th highest import and export rate of pharmaceuticals. The standard ethanol pathway when traced in its economy from sugar to products, arrives in one of three areas: blended fuels, breweries, and medicine. In the latter category of medicine, anhydrous ethanol is denatured and used as a solvent in pharmaceuticals.
Having briefly considered the economies of Malawi and Kenya, what is most noteworthy are inextricable links between ethanol production, the sugar value chain and the pharmaceutical industry. This stays true when contrasting the two countries and finding their predicaments to be different. Whether or not the pharmaceutical industry is comparatively weak, any country will benefit from a growing ethanol economy.
Foreign exchange
A straight-forward and convincing method in boosting domestic ethanol production in Sub Saharan Africa is to create a supply and demand in the market. Countries have a lot of capital designated for the manufacture of ethanol, which can bring about a supply and demand in others that have comparatively less capital. In South Africa, where we have a high ethanol output at our fingertips, we can serve other countries by entering and promoting international trade. As large as an undertaking this seems to be, the only task at hand is to bolster the selling power of ethanol by offering it at a premium that makes it affordable and beneficial to foreign economies.

A working example of this is Kenya’s situation in foreign exchange. In 2004 a drought so devastating, blighted the land that food aid was required, and sugar production temporarily reduced. But their foreign exchange policies brought them through that time and in 2018 their spike in gross domestic product was attributed to the rise of small businesses that diversified their economy and strengthened their foreign exchange. Now they have developed self-sufficiency in the industry of pharmaceuticals with surpluses being exported to neighbouring countries. It is a winsome prospect to invest with a government that is generally friendly and have enacted several regulatory reforms to simplify foreign exchange.
