Botswana fuel deal awaits RBZ nod

BULAWAYO business people have engaged the Reserve Bank of Zimbabwe (RBZ) to secure a guarantee they will get foreign currency to pay for fuel supplies into the city by Botswana investors.

Through the Bulawayo think-tank, local businesspeople recently signed a Memorandum of Understanding with Hangana Private Limited, a diversified Botswana-headquartered firm, which has interests in petroleum, mining and manufacturing, among others to supply fuel into the city.

In an interview last Friday, chairperson of the Bulawayo advisory board and think-tank Mr Kwanele Hlabangana said: "We are at the moment just waiting for the Reserve Bank of Zimbabwe (RBZ). There is a document that we require from them to guarantee the project so we wrote to Dr Mangudya (RBZ Governor) and once we get it, the fuel will start flowing into the city."

The fuel supply deal, which was facilitated by the office of the Minister of State for Bulawayo Provincial Affairs, Judith Ncube, was one of the many proposed areas of co-operation between local investors and their counterparts from the neighbouring country.

Mr Hlabangana said their Botswana counterparts have requested for a guarantee from the apex bank that the local fuel dealers would be able to pay back the supplies in forex within a stipulated time frame. As part of the agreement under the fuel deal, the Botswana counterparts will supply the petroleum into Bulawayo on 30-day credit terms.

"Once we get it (guarantee), we will then assemble all the fuel dealers in the city to actually avail the deal. We're hoping that in the next few days he (Dr Mangudya) will respond," he said.

"That's the only thing that is holding but otherwise we could have had fuel right immediately after signing of the MoU, but then those guys required that we give them some sort of guarantee from the Reserve Bank."

Mr Hlabangana is on record saying the thrust of the private sector was to complement Government efforts in turning around the economy. As such he said the intervention by the Botswana businesspeople had come at an opportune time. It is hoped that the envisioned fuel procurement arrangement would see Bulawayo service stations receiving adequate stocks to meet the city's demands.

Going forward, Hlabangana plans to spread the fuel venture across the country including setting up investments in areas such as diamond cutting and polishing in Bulawayo, mining and manufacturing.