Subsidy ‘save’ diverted to Zimbabwe in ethanol deal

Money being ‘saved’ from the fuel subsidy removal will be used for importing ethanol from Zimbabwe as an alternative source to the high prices of fuel and Energy deputy minister George Zulu has been sent to that country to prepare ground for the deal.

Government, in its effort to justify the removal of subsidy from maize and fuel said the saving realised will be made to build infrastructure but sources close to State house have disclosed that there was an ethanol import business scheme between Sata and Mugabe.
“The deputy minister is already in Zimbabwe, but above all the deal is meant to benefit Zimbabwe, instead of developing our own ethanol plant here, why should we go and import from Zimbabwe, why take the subsidy money to another country?” asked the source.

And speaking in an interview from Zimbabwe, Zulu confirmed being in that country to consider importation of ethanol as a short term measure to the high fuel prices before coming up with an ethanol plant at Nakambala Sugar Estate.

Zulu said he is aware that fuel in Zimbabwe is cheaper than in Zambia as the country uses  ethanol just like the other neighbour Malawi.

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