ZIMBABWE Stock Exchange-listed industrial concern Delta Corporation Limited, an associate of SAB Miller of South Africa, says it is still waiting for a response from government on an indigenisation plan submitted three years ago, the group chief executive has said.
The Indigenisation and Economic Empowerment Act requires foreign-owned companies with a net asset value of $500 000 or more to sell a 51% stake to indigenous people.
Speaking at the Imara Capital Investment conference in Harare, Delta CEO Pearson Gowero on Monday said: “We have no clearance, but we comply with the country’s laws. As a business we have submitted an indigenisation plan, as of today our plan has not been signed off since 2010.”
According to the Zimbabwe Stock Exchange (ZSE) as of January 31, 2013, the top three shareholders for Delta were Stanbic Nominees (22,79%), SABMiller Zimbabwe (21,86% ) and Rainier incorporated with 15,75% shareholding.
Market watchers say foreign investors would surpass the 51% threshold as Delta has been a favourite stock for foreign investors on ZSE. Major manufacturing concerns such as cigarette maker British American Tobacco have already partially complied with the empowerment law.
Gowero said the company will continue to engage government regarding the Indigenisation Act.
Turning to the company’s performance, the group reported a 38% growth in after tax profit to $104 million for the full year to March 31 due to a significant growth in revenue.
Delta’s sparkling beverages full-year volume performance grew by 9% driven by improved product availability following the commissioning of a new PET packaging line in November 2012.
He said mahewu volumes grew by 42% due to localisation of the product and sorghum beer volumes were down 8% partly affected by the poor agriculture season and a raw material cost-induced price increase.
The group has plans to increase lager production capacity to 3 million hectolitres (hls) if the need arises from the current 2,4 million hls.
Sparkling beverages capacity stood at 1,7 million hls and this could be increased to 2,4 million hls while sorghum beer production could also be increased to 5 million hls.