Recent reports reveal that a deal valued at an estimated $360 million has been signed between Libya and Zimbabwe, reports the The Harare Financial Gazette.
Under the agreement, Zimbabwe will supply Libya with locally manufactured products in return for Libyan fuel. At the same time, the Libyan Arab Foreign Bank will provide the funding needed to supply the fuel.
The deal was reportedly finalized at a recent visit by President Muammar Qaddafi to Zimbabwe.
Zimbabwe, which requires a monthly fuel supply of nearly $40 million, is facing a severe fuel crisis since 1999 threatening the nation’s industry and commerce. The present deal is expected to alleviate the country’s prevailing lack of fuel.
In recent years representatives from The Commercial Bank of Zimbabwe, who serve as the financial advisers for the deal, have made numerous trips to Libya regarding fuel sales.
Although official sources refrained from going in to great detail about the agreement, they hinted that a Libyan investment in fuel facilities and service stations in Zimbabwe might also be part of the plan. –(MENA Report)
© 2001 Mena Report (www.menareport.com )