Collapsing Zimbabwe looks for Arab money

Friday 3rd of June 2005
PLUS

While over 22 000 Zimbabweans were arrested in Harare as "illegal dwellers" this week and their shacks and makeshift shops destroyed causing fear and havoc, the constitution is to be changed to allow for easier land-grabbing by the government. But President Mugabe’s cash-strapped government faces a fuel and food crises and is negotiating with Arab companies, according to ZimNews. This week Mugabe offered Dubai-based firm lucrative mining concessions in return for a US$100 million loan to import desperately needed fuel and food. The Arab financier, Al Shams Building Trading Materials LLC, is to give the loan but according to experts, it will not be enough. Zimbabwe on average requires about US$40 million of fuel per month, while at least US$200 million is needed to import about 1.2 million tonnes of food to avert starvation. Zimbabwe has in the last 4 years entered into oil supply deals with firms from Libya and Kuwait. The deals collapsed after Harare failed to pay.

In addition, most parts of Harare were plunged into darkness Monday after a power failure. Electricity only returned at noon Tuesday. Business came to a halt as a result and chaos reigned on the streets after traffic lights were not functioning.

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