The biofuel producer has commenced production of anhydrous ethanol at the plant located in the Province of Manicaland.
The company will own 49% in the venture, while the remaining 51% will be held by the government. The joint venture was formed in adherence to the country’s indigenization and economic empowerment laws that stipulate 51% ownership with domestic investors, reported Newzimbabwe.com
Green Fuel, meanwhile, said that the move can help the nation save about $120m spent for annual fuel imports.
"The blending of ethanol with petrol will reduce the petrol price thereby inhibiting the inflation rate in Zimbabwe to the benefit of the general public. It will also ease Zimbabwe’s cash liquidity crisis," the company was quoted as saying by the website.
The Chisumbanje plant, which was originally a joint venture among three parties including two private firms, stopped operating after the government declined approval for mandatory ethanol blending in the country.
In addition, the government had raised concerns over the displacement of locals for the project.
