Libya ups stake in Zimbabwean bank

Financial Gazette (Zim) ^ | August 22, 2002 | Staff Reporter

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THE Libyan Arab Foreign Bank (LAFB) is now the third largest shareholder in the Commercial Bank of Zimbabwe (CBZ), according to the Global Credit Rating Company, indicating growing influence of the Libyans in Zimbabwe's economy.

The Libyans, who first took up a stake in the Zimbabwean commercial bank in August last year, now control 12.4 percent of CBZ and are third only to South Africa's ABSA Group Limited and the government of Zimbabwe.

ABSA is still the single largest shareholder, controlling 25.9 percent of CBZ while the government owns 17.3 percent.

Other major shareholders are the National Social Security Authority, First Mutual Life Assurance Society of Zimbabwe and Zimnat Investment Corporation.

Individuals and other small investors own about 28 percent of Zimbabwe's third largest commercial bank, which is also known as the jewel Bank.

The Libyans have benefited from the disposal of the 15 percent stake previously held by the International Finance Corporation, the private sector arm of the World Bank.20

"During the period under review, International Finance Corporation disposed of its stake in CBZ and 12.4 percent of the bank was purchased by Libyan Arab Foreign Bank," says South African-based Global Credit

Rating Company in a report released yesterday.

Government critics view the investment by the Libyans in the CBZ and other firms in which the state has a stake as President Robert Mugabe's reward to Tripoli for its role in easing Zimbabwe's fuel crisis.

The CBZ has in the past two years been in the forefront of efforts to mobilise resources to deal with the country's fuel crisis, which began in 1999 after international financial lenders cut off balance of payments support in protest against the government's policies.

The LAFB, the international arm of the Libyan central bank, came to the rescue of Zimbabwe last year by offering the cash-strapped National Oil Company of Zimbabwe a US$360 million loan for the purchase of fuel from Tripoli.

In return, the Libyans were to get shareholding in key government companies and a range of food products from Zimbabwe.

Commentators also allege that Mugabe has parted with farms seized from white farmers and some of Zimbabwe's most valuable assets to ensure that Tripoli continues to supply fuel to the troubled southern African country.

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In return, the Libyans were to get shareholding in key government companies and a range of food products from Zimbabwe.

Libya ups stake in Zimbabwean bank***The LAFB, the international arm of the Libyan central bank, came to the rescue of Zimbabwe last year by offering the cash-strapped National Oil Company of Zimbabwe a US$360 million loan for the purchase of fuel from Tripoli. In return, the Libyans were to get shareholding in key government companies and a range of food products from Zimbabwe. Commentators also allege that Mugabe has parted with farms seized from white farmers and some of Zimbabwe's most valuable assets to ensure that Tripoli continues to supply fuel to the troubled southern African country.***

Gadaafi to supply Mugabe with death squads?***Relations between Mugabe and Gadaafi have been warm for some time but it is only in the last year, as Zimbabwe's shortage of foreign exchange has caused repeated fuel cut-offs that Mugabe has several times flown to Tripoli to plead with Gadaafi for deliveries on credit. Gadaafi, who has despaired of his efforts to play a leadership role in the Arab world, has begun to use his financial muscle to make interventions right across black Africa where he has made Zimbabwe a special case, advancing Mugabe a loan of $100 million.

He then made a special trip to last month's OAU summit in Lusaka - the first such summit he had attended since 1977 - to give all-out support to Mugabe's land-grabbing and anti-white policies. So large was the Libyan delegation that Gadaafi even upstaged leaders like ex-President Mandela. African leaders anxious to earn some of his largesse were even willing to overlook the fact that before Gadaafi used any chair or microphone an African had previously used, his bodyguards would rush forward to disinfect it. "It's amazing", said one Zimbabwean farmer who did not wish to be named, "how black or Arab racism gets overlooked. Whenever we hear racists being denounced it always means whites. But on Heroes Day we had to listen to (Vice President) Joe Msika telling us that whites were not even humans."

From Lusaka Gadaafi drove down to Harare in a 150 car motorcade, his army of amazon women bodyguards virtually taking over Harare. He publicly embraced Mugabe's views in an extraordinary TV appearance in which he announced that Africa was for the Africans and that whites must go back to Europe and only be allowed to stay on as servants. It was also announced that Gadaafi had promised Mugabe $586 million in fuel supplies and had made a $900,000 election contribution to the funds of Mugabe's ruling Zanu-PF party.***

Gaddafi's designs and control of Zimbabwe and Africa***Gadaafi, who has despaired of his efforts to play a leadership role in the Arab world, has begun to use his financial muscle to make interventions right across black Africa where he has made Zimbabwe a special case, advancing Mugabe a loan of $100 million. In effect Gadaafi seems to be making a bid to save Mugabe which, if successful, would create a virtual Libyan client state at the far end of Africa. Already there is evidence of direct Libyan involvement in the violence which racked Zimbabwean farms in the last ten days. ***