Zimbabwe's local ethanol powers fuel stability

Zimbabwe's domestic fuel sector has shown remarkable resilience in the face of global oil price shocks, thanks largely to the ethanol blending policy introduced in 2013. The initiative, which substitutes up to 20 percent of imported petrol with locally produced ethanol, has become a cornerstone of the country's energy strategy—preserving foreign currency, strengthening fuel security, and supporting rural industrialisation.

The Zimbabwe Energy Regulatory Authority (ZERA) recently announced new fuel prices effective March 4, 2026, with petrol set at US$1.71 per litre and diesel at US$1.77, after the government cushioned citizens by reducing certain taxes and levies to offset surging international costs driven by instability in the Middle East.

Minister of Information, Publicity and Broadcasting Services Dr. Zhemu Soda, acting as Energy Minister, confirmed that Zimbabwe currently holds up to three months of fuel reserves, ensuring adequate supply for petrol, diesel, and aviation fuel. "We are sure that we will be able to maintain affordable prices of the commodity as we keep following events in the Middle East conflict," he said.

GreenFuel, the country's leading ethanol producer based in Chisumbanje, has been central to the programme. The company manages over 14,000 hectares of sugarcane estates, produces ethanol at 99.6% purity, and maintains an installed capacity of 12 million litres per month. "By supplying locally produced ethanol for blending with imported petrol, GreenFuel contributes to reducing the overall import requirement for finished fuel," said GreenFuel community relations manager Merit Rumema.

Beyond fuel production, GreenFuel operates a "zero-waste" power generation system, using sugarcane fibre residue (bagasse) to power boilers that produce steam and electricity. The plant generates up to 18MW, with surplus electricity exported to the national grid, further reducing reliance on imported energy.

The ethanol blending policy has yielded tangible results over more than a decade, with over one billion litres of ethanol incorporated into Zimbabwe's fuel supply. The initiative not only cushions consumers from global price fluctuations but also strengthens agricultural value chains, boosts GDP, and supports sustainable energy practices.

Looking ahead, GreenFuel plans to expand sugarcane cultivation to 15,000 hectares and enhance storage and logistics infrastructure to maintain a stable ethanol supply throughout the year, solidifying Zimbabwe's domestic fuel security and providing a buffer against global energy market instability.