News / National
Govt should adopt ethanol blending policy says CZI
16 May 2012 at 21:58hrs | Views
Dr Joseph Kanyekanye
The Confederation of Zimbabwe Industries (CZI) says there is need for government to adopt mandatory ethanol blending policy to save the Chisumbanje Project from collapse as failure to do so will set a wrong signal to other potential investors.
As debate on the US$600 million Chisumbanje Ethanol Project rages on, the CZI has added its voice saying government should have a policy framework by December this year so as to promote the use of E10.
Briefing journalists in the capital, CZI president, Dr Joseph Kanyekanye said savings that can be accrued from utilising green fuel will be used in bridging the trade deficit of around US$2.4 billion.
"The amount of money saved by utilising the ethanol from Chisumbanje will be channelled towards the country's national debt, payment of civil servants among other pressing issues," said Dr Kanyekanye.
Dr Kanyekanye said the Chisumbanje Ethanol Plant is set as an example to other potential investors and its failure will have a negative impact on those willing to invest in the country, adding that suggestions by the responsible Minister, Mr. Elton Mangoma, to export the product are not valid owing to the existence of illegal economic sanctions imposed on the country by western nations.
"The ethanol plant is the yardstick for other investors and the failure to ensure its success will impact negatively on the inflow of investment in the country. Those who are advocating for the exportation of the product are misplaced as the country is under sanctions imposed on the country by western nations," he added.
The Chisumbanje Ethanol Project is anticipated to reduce the fuel import bill as well as increase electricity supply significantly.
Currently, reports indicate that more than 4 000 workers will be laid off owing to the stoppage of operations at the plant.
Government is failing to come up with a policy to enable mandatory blending of petrol in a move analysts say are deliberate acts of sabotage by some elements within government.
As debate on the US$600 million Chisumbanje Ethanol Project rages on, the CZI has added its voice saying government should have a policy framework by December this year so as to promote the use of E10.
Briefing journalists in the capital, CZI president, Dr Joseph Kanyekanye said savings that can be accrued from utilising green fuel will be used in bridging the trade deficit of around US$2.4 billion.
"The amount of money saved by utilising the ethanol from Chisumbanje will be channelled towards the country's national debt, payment of civil servants among other pressing issues," said Dr Kanyekanye.
Dr Kanyekanye said the Chisumbanje Ethanol Plant is set as an example to other potential investors and its failure will have a negative impact on those willing to invest in the country, adding that suggestions by the responsible Minister, Mr. Elton Mangoma, to export the product are not valid owing to the existence of illegal economic sanctions imposed on the country by western nations.
"The ethanol plant is the yardstick for other investors and the failure to ensure its success will impact negatively on the inflow of investment in the country. Those who are advocating for the exportation of the product are misplaced as the country is under sanctions imposed on the country by western nations," he added.
The Chisumbanje Ethanol Project is anticipated to reduce the fuel import bill as well as increase electricity supply significantly.
Currently, reports indicate that more than 4 000 workers will be laid off owing to the stoppage of operations at the plant.
Government is failing to come up with a policy to enable mandatory blending of petrol in a move analysts say are deliberate acts of sabotage by some elements within government.
Source - Zbc
