The strategy, which would not require "excessive support" nor hit food security, comes as volatile oil prices combined with a global drive to limit greenhouse gases forces governments to look at alternative energy sources.

South Africa, an economic giant on the African continent, envisages that biofuels would create jobs, particularly in the agriculture sector which is under pressure as it comes to grips with post-apartheid liberalisation and global competition.

"The biofuels industry has the potential to create 55 000 agricultural jobs and will contribute to reducing greenhouse gases and promote a cleaner environment," government spokesman Themba Maseko told a news briefing.

"The required capital investment will be approximately six billion rand which will come from both public and private sectors."

Maseko said a team will review the strategy before it is submitted for finalisation in May 2007.

The proposed strategy will see South Africa, which produces a surfeit of sugar and maize crops, use the excess to manufacture bio-ethanol for possible use in cars.

Already Brazil, a strategic partner in trade relations with South Africa, is being touted as an example to follow because of its successful biofuels industry.

Plants have also emerged in the United States and in Europe as countries look for cheaper and more environmentally friendly alternatives to conventional fuels.

Nampa-Reuters

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