The Zambian government is set to ink a memorandum of understanding (MoU) with Zimbabwe-based firm Green Fuel to import ethanol in a bid to narrow down fuel costs.

The announcement follows a visit by Mines, Energy and Water Development deputy minister Charles Zulu to the Chisumbanje Energy plant operated by Green Fuel in Harare.

Zulu stated that the country is delighted with the cheaper ethanol source in Zimbabwe.

‘We are happy that we have found a source of energy which, in the short-term, will assist us as a country to bring down the prices of fuel in Zambia," said Zulu.

"We are about to sign a MoU with Nakambala, although the sugar company wants to start producing power and exporting ethanol. So we want to encourage them to just use ethanol produced at the plant."

The minister claimed that by switching to ethanol, the country can bring down fuel prices, besides creating jobs and giving a boost to the economy.

Green Fuel, meanwhile, noted that the company is gearing up to begin exporting the fuel to Zambia, besides adding that it was possible to export directly from the plant as it had a customs officer stationed within the plant.