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28 January 2020
BUSINESS

Zimbabwe turns to UAE to sell a stake in the national oil company

Sanctioned by the West and snubbed by China, Zimbabwe has turned to the UAE in its latest bid to find a saviour that can arrest the collapse of its economy.

Zimbabwe has approached the UAE in hopes of selling a stake in its national oil company/Bloomberg

by Bloomberg

Zimbabwe is considering selling a 25 per cent stake in the National Oil Infrastructure Company of Zimbabwe (NOIC).

NOIC owns storage depots at the port of Beira in neighboring Mozambique as well as five locations in Zimbabwe. The national oil company also owns gas stations and the pipeline that brings oil products from Beira to Mutare for companies including Puma Energy, in eastern Zimbabwe.

Zimbabwe is prone to frequent shortages of motor fuel and sees a relationship with the UAE, possibly through the Abu Dhabi National Oil Company, as a way of securing supply. The southern African nation consumes 1.4 million liters of gasoline and 2.5 million liters of diesel daily.

Fortune Chasi, the Zimbabwe Energy Minister, said, “We are working toward establishing a permanent arrangement with friendly countries and that also includes the UAE.”

Zimbabwe has approached the UAE in hopes of selling a stake in its national oil company. Similarly, the government wants companies in the UAE to buy more of its gold.

Zimbabwe's President Emmerson Mnangagwa said that UAE investors will build solar plants in Zimbabwe and the UAE President HH Sheikh Khalifa bin Zayed Al Nahyan issued a decree to open an embassy in Zimbabwe a year ago.

The UAE Dubai contributed to relief efforts when Zimbabwe was hit by a cyclone last year.

The UAE is not the only country President Mnangagwa has targeted for potential investment.

 


RELATED STORIES: UAE Fortune Chasi National Oil Infrastructure Company of Zimbabwe Zimbabwe President Emmerson Mnangagwa


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