Biodiesel plant faces ongoing closure in Zimbabwe

Originally viewed as the solution to all of Zimbabwe's fuel issues, one of the nation's key biodiesel plants faces a period of drawn-out closure after the Reserve Bank of Zimbabwe (RBZ) has pulled out of the project.

Despite having already invited bids for its 50% shareholding in fuel manufacturing company Transload, investment and economic analysts predict the project will find no investment from locals, while investors from overseas will be put off by the negativity surrounding the Indigenisation Empowerment Act.

'Chances are very minimal that anyone would put money into such a project considering our economic and political circumstances,' comments Nyasha Muchichwa, an economist at the Labour and Economic Development Research Institute of Zimbabwe.

However, independent economist John Robertson disagrees with Muchichwa, stating the plant could find a buyer as long as it is sold for a good price. 'We have oil producing companies such as Olivine, United Refineries and National Food which might need to equipment,' he says.
The biodiesel plant is a joint venture between Zimbabwe and South Korea's Yuon Woo.