adminThe Agricultural and Rural Development Authority and MacDom established the US$600 million ethanol project under a BOT scheme, which is the parent company for Green Fuel.
The company produces ethanol that is blended with petrol.
Appearing before the Parliamentary Portfolio Committee on State Enterprises and Parastatals on Tuesday, the executive director of the State Enterprises Regulatory Authority, Mr Edgar Nyoni, said they were assisting Government in the negotiations to change the ownership structure.
“We are currently assisting the Ministry of Agriculture on the Chisumbanje project. Government wants to convert the project from BOT to a joint venture,” he said.
Mr Nyoni said the desire by Government to have the ownership structure changed is a result of the importance of the green fuel project to the nation.
“This has been a concern of Government looking at it as a National Status Project, that is, it is a national project in terms of the land involved,” he said.
The green fuel project has a capacity to produce 160 million litres of ethanol annually although production has been suspended due to reluctance by fuel companies to blend petrol with ethanol.
The company has 10 million litres of ethanol in stock but has run out of storage space, prompting the suspension of production.
Permanent Secretary in the Ministry of State Enterprises and Parastatals Mr Eliah Mutowo said there was need to come up with legislation to compel companies to blend petrol with ethanol.
More than 5 000 people are employed at the green fuel project.
Online Reporter
- Herald
- July 31, 2026
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