RBZ fails to avail Delta’s monthly $5m forex need

DELTA Corporation says it has not received foreign currency allocation in the past three weeks, leading to sporadic supply of its products on the market.

By Freeman Makopa

Delta company secretary Alex Makamure told NewsDay on Friday that the group requires
$5 million in foreign currency on a monthly basis to import raw materials.

“We have not yet received any foreign currency allocation for the past three weeks and this has negative impact on our production, as we require it to purchase raw materials needed to make soft drinks. The business requires at least US$5 million every month to meet its imported raw materials needs,” he said.

“Right now, we are not meeting the national demand in soft drinks and we also have a high demand in beer, in which we are trying to supply to consumers. So RBZ (Reserve Bank of Zimbabwe) needs to avail these funds in order for us to curb these challenges.”

Corporate executive manager Patricia Murambinda refuted claims circulating on the social media that the company would, resultantly, retrench.

“Delta is not retrenching any workers. Our soft drinks business is operating below capacity due to foreign currency shortages to import critical raw materials, especially concentrates, which has resulted in intermittent product supply gaps in the market,” she said.

“We continue to engage our banks and RBZ to avail the required foreign currency and they are doing the best they can to avail the required foreign currency.”

9 Comments

  1. Considering that fizzy drinks are not recommended by doctors and are equally not good for ones health the little bit you are supplying the market suffices as the government need to focus on other key products required for day to day survival.

  2. Its a pity that forex still has to be sourced from RBZ by a company that could look for support from its major shareholder across the Limpopo. Central bank should play the role of regulator and facilitator and not direct source… there should be instruments which permit the movement in and out of Zim of money by operating companies the likes of Delta. I am sure part of the problem with us is that even mwana rimuGrade 5 arikuda kuyamwa when he can feed himself and even contribute to the family meal…change the dependence on RBZ…dilute those shares and bring in other players …

    1. Honestly i dont see how Delta is being too dependent on the reserve bank but rather i think the reserve bank is trying to control too much, and leading to inefficiencies in the market, Gold miners are closing not cause they dont have forex but the big brother’s (RBZ) failures

    2. Good observation @ Hurukuro. Surely a blue chip company like Delta with a big buy in from SubMiller RSA should not be seen begging for forex from the erratic RBZ. It is time Mthuli’s new policy that companies be allowed their own foreign currency accounts that are not tempered with by RBZ should quickly benefit these top drawer companies like Delta. Its gross derelict of duty for the incompetent RBZ to channel forex religiously to a dealer like Tagwirei who does not generate any forex for the economy when those who generate it like tobacco farmers and gold producers are deprived of it. This is the tragic reality of Mnangagwa’s self-styled “new dispensation.”

      1. What planet do you and Hurukuro live on! Why would a company ask its principal to fund its forex need only to sell at a controlled ZW price and have their funds stuck in this place ? How does that make sense?
        What is needed is to let Delta source funds like every other player on the market and not FORCE it to sell at a specific price. If the price of a coke needs to be $1.50 bond then let it …
        Cokes will be plentiful but not necessarily affordable as they were. At least it will be on the shelf. Gold and tobacco and Platinum also need to get their full retention so there is no more subsidisation. That is where the players and politicians get involved!!!!
        Not just government needs to live within their means, everyone does !

        @Hurukuro – who are these big players you want to be brought in ? Bigger than Coke and Pepsi ? Who given the experience of coke and pepsi would want to be brought in ? Guys need to get real !

        Market forces must be allowed to prevail at every level, but it hurts ! @Sinyo has it !

  3. One cannot die from missing a usual doze of Coca Cola or Castel larger but will die from lack of proper sufficient health services. It boggles the mind how our zanupf led government priotise its meagre foreign currency. It is ridiculous that the defence ministry continue getting the lion’s share on the budget allocation when there has never been and will never be any threat to the territory that is Zimbabwe.

  4. Yes drinks might not be essentials strictly speaking but have you considered how huge Delta is in employment opportunities, contribution to fiscus through taxes. If you are a tourist would you like to go where drinks will not be available in hot summer? With Delta being a top Zim Stock Exchange company do you know the impact it has to potential investors for them to know that the country has failed to make such a company operate in its environment they will just ask themselves who else will survive in Zim. This news item has big impact in the business world.

  5. True big corporates must source for its foreign currency, this is not sustainable at all for a country which trying to rebuild its economy.

  6. The challenge is we have a Government that wants to run businesses instead of just regulating and enhancing business growth. Delta Pepsi plus many other corporations should be allowed to source own foreign currency for their products, natural economic rules of supply and demand will regulate prices to the benefit of the consumer. Same as in FUEL Government is hindering abundant-supply by limiting importation of same to a few cartels one which has since captured the state – Sakunda. Same as in Agriculture Government is through Command Agriculture disturbing proper commercial farming activity on that very essential economic cog. Real farmers with traceable records must be given title deeds on farms then targets to achieve ie so much wheat tonnes in a year. Then those farmers must approach financial institutions of their choice for funding. In conclusion government has no competencies in and must not run business but must concetrate its resources and energies on the following deliverables health services education, and infra-structure development.

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