admindue to low uptake of the blended fuel on the local market. The company has lobbied for the introduction of mandatory blending.
An Inter-Ministerial Committee tasked to deal with challenges affecting the plant has since recommended that the BOT deal be converted to a joint venture in line with the indigenisation laws of the country.
The committee said it was only after the deal was converted that mandatory blending would be considered.
In its report, the committee, headed by Deputy Prime Minister Professor Arthur Mutambara, noted that few people within the vicinity of the plant were being employed there.
“The grievances that not enough local people are being employed must be addressed. As an illustration Green Fuel employs a total of 975 workers. Out of that number 202 workers are from Chipinge District translating into 20,7 percent. This is too low,” the committee said.
“Out of an overall employment of 3 237 people only 1 099 are from the Chipinge District, meaning 34 percent, which is clearly unacceptable.”
The committee urged the company to strive to raise its overall local employment equity.
“In particular, all the low skill jobs must go to locals. Of course, we need to balance our resolution of this grievance with the desire to promote national cohesion and integration,” it said. The biggest in Africa, the plant has a capacity to produce 120 000 litres of fuel daily and to generate 18 megawatts of electricity per day, among other by-products.
Blending has the potential of cutting the fuel import bill by US$120 million per annum.
Last month, South Africa introduced mandatory blending in a move that would see all motorists using fuel with up to 10 percent content of ethanol. Other countries that have introduced similar measures include Brazil, China, Canada and India. — New Ziana.
leeroy
Online Reporter