Mukudzei Chingwere-Herald Reporter
GOVERNMENT has approved a Memorandum of Understanding (MoU) with Zambia aimed at enhancing private sector development and implementing the Zimbabwe-Zambia Oil Products and Natural Gas Pipelines Project.
This follows a recent Cabinet meeting where potential benefits of the project were extensively discussed.
One of the primary goals of the pipeline project is to reduce the transportation of fuel by road, which has been associated with tax evasion and illegal sales.
By establishing a dedicated pipeline, the Government aims to ensure that fuel and gas are transported legally and efficiently.
The proposed pipeline will extend the existing infrastructure from Beira to Feruka and from Feruka to Harare, further linking to Zambia and eventually to the Democratic Republic of the Congo (DRC).
Energy and Power Development Minister July Moyo, said the pipeline is of strategic importance for the two countries.
He noted Zimbabwe is already connected through various networks, including the Southern African power pool, railways, roads and communications.
“Sitting in the middle of Southern Africa, we have become a conduit for many integrated SADC infrastructures,” Minister Moyo said.
Minister Moyo highlighted concerns about unscrupulous individuals exploiting the road network to smuggle fuel into Zimbabwe, bypassing the taxation system.
He expressed confidence that the private sector would recognise this initiative as a lucrative business opportunity, with the Government maintaining oversight of regulatory issues to ensure compliance with necessary standards.
The project is expected to increase fuel transport capacity, with projections rising from 2,5 million to 5 million litres per year by the end of this year.
“We are planning for both fuel and gas. The fuel is easier because we have capacity now, which we are increasing,” Minister Moyo explained.
He noted that both CPMZ in Mozambique and the pipeline through PetroZim will see increased capacity, making the transport of fuel to Zambia essential.
The MoU represents a pivotal moment in regional cooperation, aiming to enhance energy security and promote economic growth in both Zimbabwe and Zambia.
It promises to reshape the energy landscape in Southern Africa, fostering greater connectivity and trade between neighbouring countries.
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