KENNETH MATIMAIRE
MUTARE Bottling Company (MBC) operations have not been spared by the foreign currency shortages which have intensified during the past few weeks, Business Times can report.
MBC is one of the many manufacturing companies that import essential raw materials for production.
The company sells its soft drinks beverages in local currency – bond notes and Real Time Gross Settlement (RTGS) while it requires foreign currency to import some of its raw materials.
Though MBC has been receiving allocations under the Reserve Bank of Zimbabwe (RBZ’s) nostro accounts, the funds have been inadequate. The company was already feeling the pinch of foreign currency shortages as early as 2016, with the situation having intensified of late.
The company managing director Allen Lang said all questions are now directed to Econet Wireless spokesperson Fungai Mandiveyi. Econet is the major shareholder in the beverages manufacturer.
Mandiveyi had not responded to questions emailed to him as advised by the time of going print.
However, according to the company’s 2018 Business Overview Report released early this year, MBC received only $1 076 227 of the required $3 million in 2017.
The foreign currency shortages resulted in subdued production of 1 261 543 cases in 2017 from 1 4 84 279 cases in 2016 at a time regional demand was projected to reach 2,5 million cases.
“This is just a summary of the impact of the foreign currency shortages to our business. We require about $900 000 per quarter but we received way less than we need to operate well.
So when we have foreign currency shortages, you see a big decline in production which translates to low sales,” MBC managing director Allen Lang is on record saying during a tour of the company.
The MBC plant has capacity to produce 30 000 bottles per hour up from between 6 000 to 10 000 bottles per day by the old line. Soft drinks demand is projected to increase to 2,9 million cases in 2020, 3,2 million cases by 2022 and four million cases by 2025.
