A letter of credit (L/C) from Ecobank has helped the Reserve Bank of Zimbabwe (RBZ) seal a deal to ensure adequate fuel supplies during the country's upcoming festive season.

The deal will see local petroleum trader, Sakunda Holdings, supplying the country with 160 million litres of fuel.

Structured facility

The deal is a structured facility in which Ecobank issued an L/C for US$24 million to support Sakunda's fuel imports.

Ecobank is also committed to providing an allocation of US$4 million to Sakunda on a weekly basis for fuel supplies to augment the L/C facility.

Forex shortage

Local media described the deal as a "local solution for a local problem."

Previous efforts by RBZ that failed to obtain sufficient foreign exchange for periods of high fuel demand resulted in fuel shortages.

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