CHISUMBANJE - Zimbabwe is moving to expand ethanol production with the goal of sustaining an E20 fuel blending ratio throughout the year, a shift that could reduce pump prices by 18 cents per litre and lower the country's fuel import bill.
Vice President Constantino Chiwenga made the announcement on Thursday during a tour of GreenFuel (Pvt) Ltd in Chisumbanje, Manicaland. He reaffirmed the government's commitment to boosting domestic ethanol output as a buffer against global fuel market shocks.
Zimbabwe currently operates at an E5 blending ratio, limited by seasonal sugarcane crushing capacity. The government is now pushing to coordinate production across multiple ethanol producers to achieve a stable E20 blend.
"We have asked them to coordinate with other producers, such as Tongaat Hullett, to increase ethanol production. This is Zimbabwe's direction — we want to sustain ourselves amidst current challenges," said VP Chiwenga.
He added that the government would explore expanding sugarcane cultivation in areas including the Zambezi and Runde river basins to secure a larger raw material supply for the ethanol industry.
GreenFuel general manager Conrad Rautenbach said the company is targeting an expansion of its storage capacity from 40 million litres to 120 million litres per year. He said that reaching E20 blending would deliver a meaningful reduction in fuel costs for consumers.
"If there was an E20 blending ratio now, there will be a saving of 18 cents, and that will be quite significant," said Rautenbach.
The push comes as fuel prices in Zimbabwe rose on Wednesday following reduced global supplies tied to the ongoing Middle East conflict. Minister of Energy and Power Development July Moyo was present at the Chisumbanje visit to discuss expansion terms with GreenFuel.
Reporting by Ray Banda
