(Ecofin Agency) - The Reserve Bank of Zimbabwe has signed a deal with local petroleum giant, Sakunda Holdings, for the importation and supply of fuel in the country.

Under the deal, which became effective at the beginning of this month, Sakunda is to supply the country with 160 million litres of fuel in order to ensure adequate supplies during the Christmas season.

The deal was struck under an organized facility, in which Ecobank issued a letter of credit for $24 million to support Sakunda’s fuel imports and has been termed as one of the local solutions for local problems, Sweetcrudes reports.

Zimbabwe’s daily consumption is at 2.5 million litres of diesel and 1.5 million litres of petrol and the country has to cautiously manage import payments.

Anita Fatunji