Ethanol Use in Zimbabwe
The Green Fuel Ethanol Project was awarded National Project Status by the Government of Zimbabwe due to the significant benefits it will bring to the country.
- Job creation and employment in agriculture and technology – The ethanol project currently employs over 3,000 people and this will only increase as the project expands. State of the art harvesting techniques have also been introduced and all our local employees have been trained by experts from Brazil, ensuring that new skills are introduced into, and kept within the country. With the investment, 36,500 fully trained, local Zimbabweans could be employed by 2025.
- Fuel Security, foreign currency savings, balance of trade – The use of ethanol provides Zimbabwe with fuel security by offering a reduced reliance on imported petroleum products. This, in turn, reduces the trade deficit with domestic ethanol production, replacing petroleum imports. Ethanol is an import replacement product – this essentially means that the foreign currency usually used to purchase petroleum product from foreign oil companies remains in Zimbabwe, thereby improving Zimbabwe’s current liquidity challenges. With every percentage of increased ethanol use, Zimbabwe improves its fuel security by being less affected by oil price fluctuations. At a blended rate of 20% (E20), approximately US$3,8 million per month will remain in Zimbabwe, replacing imported fuel.
- Clean, renewable fuel at the pump – The use of ethanol in the place of unleaded petrol decreases harmful greenhouse gas emissions by up to 90%. In particular, it significantly reduces CO2 emissions because it uses materials (i.e. sugarcane plants) that absorb CO2 during the growing process. Most recent studies have shown a positive energy balance for ethanol of between 23 and 40 percent.
- Cheaper local fuel – Ethanol is sold at a significantly cheaper price than petrol, which means that blending will reduce the cost of fuel at the pump. These savings offer consumers more spending power as the money remains within Zimbabwe.
- Increased Rural Development/Community Growth – The Chipinge district was considered one of the least developed in Zimbabwe, nicknamed ‘Mugowa’ (semi-desert). Extremely low incomes and dryland farming have historically fuelled migration into South Africa. With massive job creation brought on by the project, over $2 million is now injected into the local community each month as salaries, rent, transport and procurement. Banks and cell phone towers have opened in Checheche – a growth point that has applied for town status due to the ethanol project. Local businesses are thriving and social services such as healthcare facilities, roads, churches and schools are being refurbished and revived. In addition, 10% of all land cultivated for sugarcane is developed by Green Fuel and distributed to small-scale farmers for their own use. On completion, this will equate to a total of 5,000 hectares of flood irrigation for smallholders in Middle Sabi and Chisumbanje. More than 10,000 families will benefit from this investment of approximately $50 million.