Zimbabwe’s Delta Corporation, the country’s largest drinks maker, reported a 48% fall in half-year lager sales compared with the same period last year after output and distribution were hit by shortages of electricity and fuel.
The drought that has reduced water levels in dams needed for hydro-power, leading to 18-hour electricity cuts that is negatively affecting industry and mines.
Delta, which is 40%-owned by Anheuser-Busch InBev, the world’s largest brewer, said on Tuesday that shortages of foreign currency meant the company also struggled to import raw materials during the half-year ending September.
“Our production and distribution operations were disrupted by the shortages of electricity and fuel, which in themselves are a manifestation of the limited availability of foreign currency,” said Delta. The company said it owed $72 million to foreign suppliers.
Sales of carbonated soft drinks were down 56% during the same period, while volumes for the popular and cheaper sorghum beer fell 15%. The government in June last year abolished the use of the multi currency system favouring the use of the local currency.
The transition from dollarisation to the Zimbabwe dollar has caused an upsurge in inflation, which has eroded salaries and savings while the domestic currency is weakening against the greenback.
However the Minister of Finance and Economic Development has assured the economy will stabilise on the back of a focus on productivity in 2020.
CHECK THIS OUT…
7 THINGS YOU MIGHT NOT KNOW ABOUT MARRY CHIWENGA
Marry Chiwenga nee Mubaiwa is an ex-model and the wife of Vice President of Zimbabwe, Constantino Chiwenga who is a Retired Commander of the Zimbabwe Defense Forces.
Marry was born in 1983. She is the daughter of Kenny Mubaiwa, who is the Chairman of Dynamos Football Club. She is a mother of 6 children….more here
Trending On ZIMetro News. . .
- Blue Dam Claims Another Life!
- Popular Prophet Shoots Wife Dead In Public For Leaving Him
- “There will not be a Ndebele Kingdom in Zimbabwe” – Mnangagwa
- “It’s legal” – Govt speaks on Grobler’s eviction from farm