Elia NtaliHarare- Zimbabwe’s leading beverages manufacturer, Delta Beverages, announced a new pricing system pegged in United States dollars to keep itself afloat owing to foreign currency shortages.
In a circular dated January 2, Delta advised its retail and wholesale customers of the new pricing system, which takes effect tomorrow.
“In order to sustain our operations, the company advises the retail and wholesale customers that its products will be charged in hard currency with effect from Friday January 4, 2019,” part of the circular by Delta management read.
“Our business has been adversely affected by the prevailing shortages of foreign currency, resulting in the company failing to meet your orders and in the case of soft drinks, being out of stock for prolonged periods.
“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 has only received limited foreign currency allocations from banking channels, which have not been adequate to fund the import requirements.”
Delta revealed that it had been receiving erratic supplies of foreign currency from the Reserve Bank of Zimbabwe and was struggling to pay foreign suppliers who are now unable to continue providing credit or meet new orders, hence the decision to switch to the foreign currency pricing regime.
The country has been facing severe foreign currency shortages as the central bank prioritised exporting companies, a move that crippled many companies that produce for the domestic market, but require forex for importation of raw materials and production equipment.