Delta Beverages says it will invest $26 million to upgrade its Masvingo and Kwekwe breweries to increase production capacity of its popular sorghum beer, Chibuku Super from 2.2 million litres to 2.4 million litres by the fourth quarter of this year.
Zimbabwe’s banks reported an aggregate net profit of $127.5 million last year, making this one of the most lucrative business sectors in the country whose economy has been on the decline over the past four years.
The Zimbabwe Asset Management Corporation which was set up by the Reserve Bank of Zimbabwe to take over non-performing loans from banks to strengthen their balance sheets has so far restructured loans totaling $357 million and has bailed out at least seven major companies.
Zimbabwe is the only country in the Southern African Development Community with negative inflation and this is largely because of the deflating effects on food and non-food prices and waning aggregate demand due to significant externalisation taking place in the country, Central Bank governor John Mangudya said last week.
Zimbabwe’s huge import bill is constraining the country’s economic growth potential and the situation is being worsened by illicit financial flows out of the country, Central Bank governor John Mangudya said in his monetary policy statement last week.
Zimbabwe, which is now using the United States dollar as its main currency, needs self-discipline to cushion itself from the vulnerabilities associated with the recent hike in interest rates by the United States government.