Zimbabwe to Swap Products for Libyan Oil
Zimbabwe has struck a $360 million barter deal under which it will procure fuel from Libya in exchange for the export of Zimbabwean products to Tripoli, a development expected to provide a temporary respite to Zimbabwe’s long-running energy problems.
Zimbabwean government sources were quoted by the Financial Gazette as saying that “the deal was brokered between President Robert Mugabe and Libyan leader Muammar Kadhafi and was finalized during the Libyan leader’s visit to Zimbabwe last week."
The Commercial Bank of Zimbabwe (CBZ), whose managing director Gideon Gono has over the past two years made several trips to Libya and Kuwait to negotiate fuel deals, is expected to act as financial advisers to the deal, the paper said.
According to the weekly, based on the arrangement, the Libyan Arab Foreign Bank will provide $360 million for fuel supplies to Zimbabwe.
The funds will be released in quarterly tranches of $90 million and Harare has agreed to finance the fuel purchases through exports to Libya of local products.
Zimbabwe requires about US$40 million to import fuel every month, according to the report – Albawaba.com