Libyan leader Muammar Gaddafi has again come to President Robert Mugabe’s rescue, with a deal for another year’s supply of petrol, the Zimbabwean state press reported on Wednesday.
The Herald said the two countries signed an agreement for the supply of $360-million worth of fuel on Monday night.
The report came as fuel supplies in the country are worsening.
On Tuesday and Wednesday fuel stations in Harare either had ”no fuel” signs up or queues of cars waiting for petrol.
The Herald, reporting from Libya where Mugabe arrived on Saturday, said the cash would be delivered in quarterly tranches of
$90-million.
The newspaper gave few details of an ”investment agreement” in which Libya would receive Zimbabwean agricultural products and take up stakes in productive sectors and the fuel industry.
However, the deal was slammed by some.
”To say we have an investment agreement is rubbish,” said economist John Robertson.
”The whole thing is opaque, and they mean to keep it that way.”
Gaddafi is seen as Mugabe’s strongest supporter in Africa.
In August last year, with foreign currency reserves desperately short and faced with diminishing fuel supplies, Mugabe secured the first $360-million deal with Libya. It expired on August 31.
Fuel industry experts say Libya now is probably the country’s only source of fuel.
”Consumption is down to about three-quarters of what it was because of the decline of the economy, so $30-million a month will be more than enough,” said Robertson.
Monday’s agreement was between Tamoil, the Libyan state fuel supply company, the Libyan Arab Investment Bank and the Libyan Arab Investment Company, the Herald said.
The same companies were involved in the last year’s agreement.
Zimbabwe Finance Minister Herbert Murerwa signed the ”trade, investment and fuel supply agreement” with his Libyan counterpart Ageli Breni.
Murerwa was quoted as saying that Libya would also ”invest in the mining, tourism and agricultural sectors and infrastructure development in the oil industry”.
Libya would enter joint ventures in Zimbabwe and reopen gold mines that had been shut down.
About 50 gold mines have closed in the last two years as a result of the collapse of the economy.
Murerwa said Zimbabwe would also export beef, tobacco and fruit to Libya.
However, there was no independent confirmation of the arrangements.
”An investment agreement is about parties taking and giving,” said Robertson.
”What have we to give? Nothing.”
Fuel first began to run out in December 1999 when the government was unable to meet payments for supplies from foreign oil companies.
The shortage saw motorists waiting in queues at service stations for days on end while government made short-term finance and supply deals and often defaulted on payments. – Sapa