DEPRECIATING currencies in Zambia, Malawi and Mozambique have affected African Distillers (Afdis) export initiatives into the region, managing director Cecil Gombera has said.
BY TARISAI MANDIZHA
Afdis began exporting to Malawi last year and the company said it had plans to venture into Zambia and Mozambique.
“We exported two containers just before Christmas, but because of the Malawian kwacha, prices are declining against the United States dollar, due to the strengthening of United States dollar, we are now slowing down on our exports,” Gombera said.
He said the depreciation of the currencies for the distiller’s export destinations also makes the product costlier.
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“Currently, the depreciation of the Malawian kwacha against the United States dollar becomes uncompetitive for players. It’s the same if we export into Malawi were currencies have depreciated against the dollar, we land the products a lot more costly,” Gombera said.
He, however, said Afdis plans to venture into Zambia and Mozambique once their currencies stabilise.
Afdis recorded an improved overall volume performance ahead of prior year in the four months of the 2015/2016 financial year driven by the growing demand for ciders and wine.Afdis has a June 30 financial year ending.
Ciders grew by 56% on prior year, while the spirit business was up 8% above prior year and contributing 58% of total Afdis volumes.
The spirit business in 2015 contributed 58% of total Afdis volumes, but has experienced severe challenges under the current financial year.