Delta boss speaks out on tax wrangle

Zimbabwe’s biggest brewer,Delta Corporation’s bruising tax battle with the  the country’s tax collector, Zimbabwe Revenue Authority (ZIMRA) has become a lightning rod for wider frustrations in the private sector.

The blue-chip company is fighting back against what it views as retroactive, unclear taxation, warning that unresolved disputes are placing a chokehold on business.

In a wide-ranging interview with our reporter Robin PHIRI (RP), Delta’s  Acting Chief Executive Officer Alex Makamure (AM) opened up about the financial strain of the ZIMRA case, the broader tax environment, and the behemoth’s  strategy for navigating shifting tastes, policy headwinds and economic uncertainty.

RP: Delta is currently embroiled in a tax dispute with ZIMRA. What impact has this had on your operations, and are you confident of a favourable outcome?

AM: We can’t be confident. Tax issues are inherently complex and often carry political weight, especially where the government wants to collect in foreign currency. But our core argument is about legislative clarity. It’s not just Delta. The Innscor group and others are also in similar situations. These cases are dragging on because we’ve had frequent currency changes, and the law hasn’t caught up.

Right now, we are operating with significant obligations hanging over us. These aren’t small numbers. If they crystallise, they could threaten the viability of the business. We can’t make long-term strategic decisions with a noose around our neck. We’re urging the authorities to look forward. Tax fairness may be a stretch, but legislative clarity isn’t.

RP: Some industry analysts believe this dispute reflects deeper structural issues in the tax and fiscal space. Your take?

AM: They’re right. Tax law by nature can be interpreted differently. But in our case, the dispute is narrow, it’s about how transitional currency periods are handled.

The Income Tax Act has already been amended (Section 37AA), but VAT still needs similar clarity. The real issue is that ZIMRA is currently filling legislative gaps with internal guidelines. In most countries, these grey areas are resolved by Parliament, not through interpretive guidance.

This problem will recur as long as we keep switching currencies every few years. The solution is simple: amend the law clearly. Don’t make companies litigate for clarity.

RP: Let’s shift to strategy. Delta continues to dominate the beverage sector. How are you positioning the business to sustain growth in a saturated market?

AM: We embrace competition. It forces us to be introspective and agile. Our brands—lagers, Coca-Cola soft drinks, and Chibuku—have stood the test of time. We innovate constantly to stay ahead. That’s how we’ll continue growing.

RP: In an inflationary environment, how do you balance pricing for affordability while protecting your margins?

AM: The semi-dollarised economy brings stability. Dollar-based pricing has made cost forecasting easier. But Zimbabwe’s cost structure remains high relative to the region. We’re working hard to remove inefficiencies. We believe a competitive economy benefits everyone.

RP: You mentioned innovation. How is Delta responding to evolving consumer tastes, especially among younger demographics?

AM: Consumer tastes are changing rapidly, especially with Millennials and Gen Z. We’re evolving too. That’s why we’ve introduced Chibuku Super, and we’re adding flavours to appeal to younger and female drinkers.

But we won’t abandon our loyal traditional base either. It’s about striking the right balance.

RP: Despite severe headwinds and policy shifts, Delta remains operational. What’s the secret to your resilience?

AM: Agility. We adapt quickly to policy changes. On forex, we’re fortunate to generate most of our earnings in foreign currency. With commodity exports like tobacco performing well, we’re optimistic about market stability. But our business model depends on our ability to respond fast.

RP: Your trading update  for the quarter to June 30, 2025, shows 25% revenue growth. What were the key drivers?

AM: One major contributor was Schweppes, which we fully consolidated this year. That alone added about 10%. But even without it, core business revenue grew 15% on the back of stronger volumes in lager and traditional beer.

RP: As the Minister prepares the Mid-Term Budget Review, what key reforms are you hoping for?

AM: We need clarity and moderation, especially on the sugar tax, which is hurting the non-alcoholic beverages sector. We understand the need to boost revenue, but overtaxing the sector distorts pricing and reduces competitiveness. We’re simply asking for a more measured approach.

RP: Delta is one of the top taxpayers and is listed on the ZSE. What role do you play in shaping industrial policy?

AM: We actively engage policymakers—through our parent ministry, the Ministry of Finance, and business member organisations like CZI and ZNCC. We draft proposals, write position papers, and participate in dialogue. But once proposals are submitted, we can’t always control what happens next. Our aim is to help build an environment where businesses can thrive.

RP: Finally, what’s your strategic outlook over the next five years given the current volatility?

AM: Zimbabwe has enormous potential. We have the resources—minerals, agriculture, people. If government sticks to policy consistency as outlined in national development strategy we could unlock real growth.

Political stability is key too—it directly affects economic confidence.

We’re ready to grow.

But we need an environment that allows us to plan, not just survive.