Delta warns of deepening business crisis

SAMANTHA MADE

Delta Corporation Limited, Zimbabwe’s largest brewer, has sounded the alarm over the country’s worsening economic climate, warning that persistent currency instability, erratic policy shifts, and surging production costs are severely undermining local industry and threatening its competitiveness.

In a hard-hitting statement, Delta chairman Todd Moyo said the company is operating in an increasingly unpredictable and hostile environment that is eroding pricing power, driving up costs, and exposing local producers to a flood of cheaper regional imports.

He urged authorities to urgently stabilise the local currency and ensure reliable access to foreign exchange through formal banking channels.

“The operating environment in Zimbabwe remains complex, influenced by policy changes and currency instability,” Moyo said. “The beverages sector faces further challenges relating to uncompetitive retail prices arising from high input costs and taxes which attract lower priced imports from the region and policy-driven changes to the route to market. We continue to urge the authorities to implement policies that would ensure the stability of the local currency and access to foreign currency through the banking channels or through trading.”

Delta’s concerns echo a broader outcry from the formal business sector, which is increasingly alarmed by the economic headwinds sweeping across industries.

Moyo warned that unless urgent reforms are undertaken, companies like Delta risk being outpriced and outpaced by imports, while long-term planning becomes virtually impossible under the current volatility.

The company, which dominates Zimbabwe’s beverages market, said it is being squeezed by rising production costs, punitive taxes, and chronic exchange rate disparities. Moyo stressed that the pricing disadvantage is now a serious threat to domestic manufacturing.

Despite these setbacks, Delta remains cautiously optimistic and is positioning itself to benefit from any rebound in consumer demand and improvements in the 2025 agricultural season.

“Despite these challenges, the business remains well-positioned to seize any opportunities from increased consumer spending. Our focus remains on capitalizing on activities that generate aggregate demand and positioning the business for future growth,” Moyo said.

Looking ahead, Delta’s performance will be shaped by both domestic and international dynamics, including global commodity prices, exchange rate movements, and escalating trade tensions between major economies.

“The full effects of lower mineral prices, improved gold price, international currency movements and disruptions to global trading arising from tariff disputes between the United States of America and its key trading partners have not fully manifested,” he said.

Moyo also pointed to the impact of climate change and natural disasters on agricultural commodity supply chains—critical to Delta’s operations. However, he sees promise in the upcoming harvest season.

“The pricing and supply of agricultural commodities is affected by changing climatic conditions and prevalence of natural disasters. There will be some benefit from the improved cereals and tobacco outputs in 2025,” he said.

As part of its long-term strategy, Delta is doubling down on sustainability, focusing on environmental stewardship, responsible consumption, and community engagement. Moyo said the company is stepping up its campaigns targeting underage drinking, recycling, and brand support for sports and culture.

“The group remains focused on its sustainability agenda, with increased activities in the areas of responsible alcohol consumption, reduction in waste and pollution, community involvement and optimising resource utilisation,” Moyo said. “In the current year we have amplified our communication on underage drinking under the Pledge 18 campaign, Make A Difference–Recycle executions, and uprated the brand activations supporting sports and culture.”

Delta’s warning underscores growing private-sector frustration over Zimbabwe’s unpredictable policy environment and currency chaos.

Without urgent reform, even the most established corporates face a precarious future in what has become an increasingly unstable marketplace.