Mining, agriculture growth drive surge in fuel consumption

Midlands Bureau Chief

THE growth of mining and agriculture activities is driving the surge in domestic fuel consumption by the productive sector, especially diesel, Zimbabwe Energy Regulatory Authority (Zera) chief executive, Mr Eddington Mazambani, has said.

Official statistics indicate that Zimbabwe consumed over one billion litres of diesel in the year 2022 from 849 million litres in 2021.

Agriculture and mining are the key economic activities that support the majority of the population that lives in rural areas.

Since the coming of the Second Republic led by President Mnangagwa, the two sectors have registered tremendous growth evidenced by higher production capacity and export receipts.

“Mining and agricultural activities are driving the surge in fuel consumption especially diesel in the country,” said Mr. Mazambani in an interview.

“Diesel consumption jumped from over 849 million litres in 2021 to 1, 04 billion litres. Petrol moved from 43 million litres to 51 million litres. There’s also an increase in vehicles on the roads.”

Economic players have also commended the Government for creating an enabling environment for agriculture and mining to thrive through incentives, which have seen the key sectors of the economy grow in the last two years.

Confederation of Zimbabwe Retailers president, Dr. Denford Mutashu, said higher fuel consumption was an indicator of increased economic activity across sectors.

“While we have our fair share of challenges, the economy under President ED Mnangagwa remains on a solid foundation for long-term growth,” he said.

“That fuel was easily available across the country is a key stability indicator that should not be taken for granted.”

Zimbabwe National Chamber of Commerce (ZNCC) past president, Dr Tinashe Manzungu, said businesses were excited about the increased performance of the mining and agricultural sectors, which has a spillover impact on construction.

“I think we are entering exciting times for the economy as pronounced by the surge in fuel consumption. A fuel consumption surge means the economy is moving,” he said.

“We have tractors in the fields, lorries moving inputs and harvests. We have mining sector plant and equipment using fuel and their downstream industries are benefiting, which has seen a boom in the construction sector.”

Dr Manzungu said there were also new industries that were coming on board that are contributing to the surge in fuel consumption.

“What we, therefore, need is a constant supply of fuel in the country. Any time a miner, farmer or retailer wants it, they should have it so that the economy continues to grow,” he said.

The strides in farming are being achieved under the Government’s Agriculture and Food Systems Transformation Strategy, whose aim is to ensure the country produces enough maize, wheat, and soya beans to meet domestic demand and even produce a surplus for export.

Under the mining sector, the Government is driving towards attaining a US$12 billion milestone this year. The extractive sector already contributes over 60 percent of annual foreign currency receipts and 17 percent of Gross Domestic Product (GDP).