Libya, Zimbabwe renew $360 million fuel deal
Zimbabwe has managed to secure regular supplies of fuel for its citizens for the coming year through the renewal of a $360 million deal with Libya, originally signed two years ago. The European Union had reportedly been trying to pressure Libya into terminating the contract, seen as supporting President Robert Mugabe's repressive regime.
Zimbabwe pays Libya for its purchases of fuel with local currency and export barter deals of beef and tobacco, according to the initial agreement concluded between the two countries. Within the framework of the renewed deal, Libya is expected to enjoy preferential investment opportunities in Zimbabwe’s infrastructure, mining, tourism and agriculture sectors, the local Herald reported.
Acute fuel shortages, which have been a regular feature in Zimbabwe for the past few years, have been alleviated by the Libyan oil supply agreement signed in August 2000. Currently, it is estimated that as much as 70 percent of Zimbabwe's fuel supply originates from Libya, making it the largest supplier of petroleum fuels to the southern African country
The deal was renewed this week following a three-day visit by President Robert Mugabe, accompanied by high-level officials, to the North African country, on route to a United Nations meeting in the New York City. — (menareport.com)
© 2002 Mena Report (www.menareport.com)