Govt shoots down Delta US$ prices

GOVERNMENT yesterday shot down Delta Corporation’s decision to price its products in United States dollars, in a clear indication that authorities are opposed to re-dollarisation of the economy.

BY FIDELITY MHLANGA

There was no activity at the Coca-Cola Graniteside depot in Harare yesterday a day after Delta Corporation announced it would soon start selling its products in United States dollars, a decision which government has shot down ahead of today’s planned meeting between the two parties

Delta, the country’s largest beverages manufacturer, announced a new pricing system pegged in United States dollars on Wednesday, in a strategic move to keep itself afloat in the face of foreign currency shortages.

Industry minister Mangaliso Ndlovu, who described the move as illegal, said he was looking forward to discuss the issues bedevilling the company today with a view of finding a lasting solution.

“Look, I cannot pre-empt what we are going to discuss in the meeting. That will defeat the whole purpose of our meeting, but our position is that their proposal, promise or threat cannot work. We just want to discuss that issue and also look into the challenges they are facing,”he said.

Delta requires between $60 million to $100 million in forex per annum, but has not been able to access because of the ongoing shortages of foreign currency.

In the run-up to the festive period, the company announced that it had shut down its soft drink manufacturing plant due to shortages of imported raw materials.

The beverages manufacturer owes $41 million to foreign suppliers and dividends worth $30 million to Anheuser-Busch InBev, the world’s largest brewer, which holds a 40% stake in Delta.

Company secretary Alex Makamure yesterday confirmed their scheduled meeting with government today.

“Yes, we received a communication from government and we are meeting them tomorrow (today). If government gives us a direction, that is what we will do,” Makamure said.

Delta, one of the biggest counters on the local bourse, has invested in excess of US$600 million in plant and equipment, vehicles and ancillary services since 2009.


Confederation of Zimbabwe Industries (CZI) president Sifelani Jabangwe said government needs to manage its foreign earnings properly given that the country is performing well in export earnings.

“They (Delta) don’t want to sell in USD, but they need forex. If they are given forex, they will not continue operating. If they don’t allow them to trade in forex, they must be given foreign currency by the central bank,” Jabangwe said.

“The intervention that is required from government now is that they should be given forex. If they are not given forex they will close.”

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21 Comments

  1. Beer is leisure…..leisure is for those with money…..my suggestion is charge clear beer in USD. Use part of the proceeds to finance drinks. Mascud nesupee must be disbanded becoz the packaging needs forex. Masese ngaaendeswe kumabhawa becoz most bars are idle. Hwechirungu ngahukwidzwe price futi. Its too cheap.

    1. Aahh imi tsve nyaya dzinemusoro kana usingakwanise kutenga usanetsese vane mari dzavo, dont advocate for the rise of a price in something because you dont use it nxaa

    2. tendai chaminuka

      Very right Shumba.doro remugojo ngaridzoke.Alot of forex will be saved.

    3. So Coke haisi leisure? Is it a human need? Beer haridi forex to be manufactured, malt, hops, barley, mvura, all set. Ma soft drink enyu aya ndiwo anoda ma ingredients akawanda-wanda from outside the country. So they should charge those in USD. Why punish beer drinkers to finance vamwe vanoda zvinodhura kugadzira?

  2. Zimbabwe is open for business ED Pfeee

  3. If the Central Bank is failing to avail foreign currency to companies, they are killing the industry henceforth if the government forces the Manufacturing companies to continue trading in this no currency the so called bond not, these companies will be left with no other option other than closing and with this leading to an increase in unemployment rate and a further crumble of the economy. Its not Delta Beverages fault but that of the Finance ministry and the Central Bank which clearly mentioned that companies should come up with the means to raise their foreign currency and charging products in US$ is one og the means.

    These idiots nxaaa

    1. You are the idiot nxaaa! Does the central bank grow money/forex? Companies must source their own forex. As for Delta we don’t need their sugar water which is not good for the nation’s health!!

  4. its better for these companies to close we do not need them in zimbabwe given their appetite for profiteering if the usd prices circulated are anything to go by

  5. Zimbabwe is open for business…

  6. tendai chaminuka

    This booze cabinet always misses the point.Why not allow Delta to trade in US$ then you tax them in US$ thereby raising your forex reserve.That allocation you want to give them at least have a gradual allocation to civil servants starting with the health sector.Be in control of the situation not to respond to a situation.You can not conceal a pregnancy for a long time.The market was going to determine for Delta and within 3 months vaichema.

  7. kkkkk so we have an economy that is melting and the President or is it the acting president is busy discussing the price of beer. AHHH

  8. Policy inconsistency, the same government is charging imported vehicles in USD denying Delta will not improve the situation as they will just close down operations and more jobs will be lost indeed the country is days away from closure.

    1. Nobleman Runyanga

      There are double-standards here. Motor vehicles are for personal use and are, therefore, a personal luxury. Delta Corporations employs thousands of people and going the USD route would likely see them closing shop, throwing the employees in the streets in the process. Delta is among the top tax payers in this country and allowing it to close shop would obviously deprive Treasury of the much-needed revenue. I disagree with you that the country is facing “closure”. If anything Government is sparing no effort and expending every resource to turn the economy around. The economy deteriorated over a 20 year period and, therefore, its recovery will take time. As Zimbabweans we should be prepared individually to contribute to our economic turnaround instead of just pointing politically-coloured fingers at Government.

  9. the problem is that the consumers dont earn usdollars. only a few have the usd while those who have it might use it for once ,twice or thrice and its over……I THINK GOVT JUST NEEDS TO INTRODUCE RANDS FOR CIRCULATION RATHER THAN USD , CZ ITS HARD TO GET.

  10. Ngaivhare nyaya yeforex yazotanga kushaikwa gore rino chete here,kubva 2000 zvaingonetsa vakadini kufara let them close tonwa pepsi nemiranda and that will give this supplier of miranda to introduce thier own larger.Vanofunga kuti forex yacho chirimwa here chinorimwa ngavatsvage sematsvagire avaingoita since 1980.Manga majaira baba Chatunga vaikubvisai mabori kumeso dzaiziva pekusota.

  11. Ngaivhare nyaya yeforex yazotanga kushaikwa gore rino chete here,kubva 2000 zvaingonetsa vakadini kufara let them close tonwa pepsi nemiranda and that will give this supplier of miranda to introduce thier own larger.Vanofunga kuti forex yacho chirimwa here chinorimwa ngavatsvage sematsvagire avaingoita since 1980.Manga majaira baba Chatunga vaikubvisai mabori kumeso dzaiziva pekusota.

    1. We do not need to ble Delta it is the only Company which kept quiet whilist everyone raised their prices and the only Company after Econet who has large investments in Zimbabwe..You think the Minister can call an emergency meeting not seeing the effects of the closure..zvakafanana nemhunu anoti Econet ngayivarwe iwe kuti urarame pauri you need Ecocash…kana musina ma comments shut up or go back to night school munoita Economics..

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    delta ngaisanyengereravo,ngaingotengesa zvigadzirwa zvayo nemari yainoda.Hurumende yedu haizivi zvairi inoudzvinyiriri.Predident ngavatambirevo mabond vaone kushata kwawo.

  13. delta ngaisanyengereravo,ngaingotengesa zvigadzirwa zvayo nemari yainoda.Hurumende yedu haizivi zvairi inoudzvinyiriri.Predident ngavatambirevo mabond vaone kushata kwawo.

  14. Delta is used to bullying tactics..they do not tolerate emerging players in the drinks market. Let them close and give others a chance! No interest in there products.

  15. As for me representing all money changers I’m praying that every Delta’s produce/products must be sold in US$ so as for us to make cash inoonekawo.When others weeping about the situation abound our Zim is teee tichitodeedzera Zim is really open for business

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