Ethanol Saves Zimbabwe $26,5 Million

by Kenneth Matimaire (The Financial Gazette) Ethanol fuel blending saved the country an estimated $26,5 million in 2017, representing 2,65 percent of the import bill, the Zimbabwe Energy Regulatory Authority (ZERA) has revealed.

Zimbabwe introduced mandatory fuel blending in 2011 in a bid to reduce its huge fuel import bill, which hovers slightly above $1 billion annually. Currently, Green Fuel, a partnership between the State-owned Agricultural and Rural Development Authority and Macdom and Rating Investments owned by business tycoon Billy Rautenbach, is the sole registered ethanol supplier.

“The estimated forex (foreign currency) substituted by ethanol blending for up to November 2017 was $24,5 million litres. The total forex is estimated to reach $26,5 million by December,” ZERA acting chief executive officer Edington Mazambani told The Financial Gazette via email.

Zimbabwe’s fuel import volume for 2017 stood at 1,1 billion litres, down from 1,2 billion litres the previous year.

Government raised the blending threshold to 15 percent of ethanol mixed with unleaded petrol last year. Mazambani said the blending ratio was this month reduced to five percent owing to low ethanol production experienced during the rainy season. READ MORE