Delta Zimbabwe withdraws notice to sell products in foreign currency


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Zimbabwe’s largest beverage maker, Delta Zimbabwe, a unit of the world’s largest brewer AB InBev, has withdrawn its notice to start selling its products in foreign currency from tomorrow.

It said the decision was reached after a meeting arranged by Acting President Constantino Chiwenga between Delta and the Reserve Bank of Zimbabwe today.

It was agreed that Delta withdraws the notice to sell its products exclusively in hard currency in the spirit of the multi-currency framework.

The Reserve Bank of Zimbabwe will endeavor to provide the foreign currency required to ensure that Delta continues to trade on the current basis.

In a letter to its customers yesterday Delta said it had decided to charge US dollars because its business had been adversely affected by foreign currency shortages resulting in the company failing to meet its orders.

“The new fiscal and monetary policy framework in place since October 2018 does not provide for easy access to foreign currency by non-exporters,” the company said.

“The company has only received limited foreign currency allocations from the banking channels which have not been adequate to fund the import requirements

“Resultantly all our foreign suppliers are unable to continue providing credit or meet new orders as some of them have not been paid for extended periods.”

Delta said it had invested US$600 million since 2009 so there was need to protect this investment.

 

 

 

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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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