Delta pays US$240m in tax obligations

LIVINGSTONE MARUFU

Delta Corporation Limited, Zimbabwe’s largest brewer, says it pays between US$216 m and US$240 m annually in statutory obligations as part of its commitment to regulatory compliance and contribution to the national fiscus.

Despite its ongoing tax dispute with the Zimbabwe Revenue Authority (ZIMRA) over calculation methodologies, Delta has continued to meet its obligations, underscoring its position as a responsible corporate citizen.

Speaking at the groundbreaking ceremony of the company’s new brewhouse at the Belmont Lagers Manufacturing Plant in Bulawayo last week, Delta chairman Todd Moyo said the company remains one of the biggest contributors to the national treasury.

“Our beer operations provide much-needed revenue to the fiscus through excise duty and other taxes. On average, Delta pays an equivalent of US$18 million to US$20 million monthly in taxes such as excise duty, sugar tax, VAT, and PAYE, in addition to company taxes and import duties,” Moyo said.

He added that the new investment would further strengthen Delta’s local value chain.

“It will also reinforce our local sourcing strategy, supporting Zimbabwean farmers, packaging suppliers, and logistics providers, fostering livelihoods and championing sustainable development. We also appreciate the support of local authorities, regulators, and the people of Bulawayo, whose patience and collaboration make this possible.”

The new brewhouse marks a return to Delta’s historic roots. Bulawayo is the birthplace of the Sable Brewery, which officially opened on October 28, 1950. Following its merger with Rhobrew in 1952, the sable head was retained as the company’s enduring logo.

Moyo reflected on the city’s industrial heritage, noting that while many companies have migrated northwards to Harare, Delta remains firmly anchored in Bulawayo.

“The brewery packaging project will cost around US$17 million and is part of the upgrade and expansion of Belmont Brewery to include a second packaging line, fermentation vessels, and ancillary equipment at a total cost of US$35 million,” he said.
“We are playing our part in advancing inclusive growth, industrial renewal, and sustainable development — rebuilding confidence in Bulawayo’s future as a thriving industrial city once again. The overall capacity of the brewery will increase to around 1.5 m  hectolitres per annum.”

Delta has been implementing a robust capital investment programme across its operations, aimed at modernization, efficiency, and capacity expansion.

Recent projects include the installation of a returnable glass packaging line and additional fermentation tanks at the Southerton Brewery in Harare, a Chibuku Super plant at Harare Brewery for its sorghum beer portfolio, and a new PET packaging line at the Graniteside plant for its soft drinks business.

“By investing here again, we reaffirm our faith in this great city — its people, its talent, its industrious spirit, and its future as Zimbabwe’s industrial heartbeat,” Moyo said.
“This new brewhouse represents our company’s determination to reinvest, reindustrialize, and reenergize Bulawayo. The upgrade of the Belmont plant is key to improving the supply of our brands and assuring our consumers of the high quality of beverages they expect from Delta.”

He said the project goes beyond production.

“This project is not only about beer — it is about jobs, skills, and growth. It will create employment during construction and provide opportunities for local contractors, engineers, artisans, and suppliers — especially from Bulawayo and surrounding communities.”

Describing the event as a milestone, Moyo said:

“It gives me great pride and joy to stand before you this morning for this historic moment — the groundbreaking of Delta Beverages’ new brewhouse right here in the City of Kings and Queens, Bulawayo. This project reconnects with our history and heritage, as this site, which dates back to 1950, carries the company symbol and name of the Sable House Head Office in Harare. What we are witnessing is both a tribute to our legacy and an investment in our future.”

Delta has also invested heavily in logistics to ensure product availability across the country.

“We have been investing around US$40 million to US$50 million annually, inclusive of the returnable glass bottles and crates,” Moyo noted.

However, for the new investment to reach full potential, Delta has called for improved municipal and utility services.

“We value the ongoing collaboration on equipping boreholes at the Nyamandhlovu aquifers, which are vital for Bulawayo’s water security. We are hopeful that the Shangani Dam project will alleviate the water challenges,” Moyo said.
“These initiatives are critical not only for Delta’s operations but for the sustainable growth of Bulawayo and the region. We call upon ZESA and all utility providers to prioritize industrial zones and collaborate closely with the City Council and private sector.”

He also highlighted Delta’s partnership with the Bulawayo City Council in infrastructural improvements.

“We have recently partnered with the City in resurfacing Lemington Road, expanding the section of the Harare highway at our Fairbridge Brewery, and installing a water line into Umguza.”