Delta, Zimbabwe’s largest listed company has just announced that it will be charging its products in USD, with effect from this Friday, 4 January 2019, against serious viability challenges, few days after running into Christmas on minimal production.
In a statement Delta announced that the company did not have enough foreign currency, prompting foreign suppliers, some of which have not been paid for long periods, to cut off credit and new orders.
The decision means Delta, which is 40 percent owned by Anheuser-Busch Inbev, will no longer accept electronic dollars via RTGS known as “Zollars” or a quasi-currency known as “bond notes” at its Delta Beverages subsidiary.
Here are the new expected price list.
*Here is the full press statement from Delta*.
2. January 2019 Dear Customer PAYMENT OF WHOLESALE PRICES IN HARD CURRENCY
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 the banking channels, which have not been adequate to fund the import requirements.
Resultantly all our foreign suppliers are unable to continue providing credit or meet new orders as some of them have not been paid for extended periods.
In order to sustain its operations, the Company advises the retail and wholesale customers that its products will be charged in hard currency with effect from Friday 4`.’ January 2019.
It is noted that:
1. Our products are fairly priced in USD and have remained largely unchanged since 2013.
2. The Company has invested in excess of US$600 million in plant and equipment, vehicles and ancillary services since 2009. There is need to protect this investment and ensure sustenance of all value chain partners. 3. The prices of local materials and services have escalated both in USD and in RTGS (ostensibly in response to the foreign currency exchange rates).
4. The company does not trade on the parallel or black market and does not subscribe to any exchange rate between the USD and the RTGS or Bond Notes, as they are not currencies.
Registration Number: 226/68/48 Directors: P Gowero (Chief Executive Officer), M P Karombo, E R Mpisaunga. M M Valela Secretary: A Makamure
5. There is need for wider consultation on policy interventions to build consensus and market confidence among stakeholders to stabilise the macro-economic environment.
We attach our current price list and recommended retail prices, which are all in US Dollars. We trust that our customers will continue to charge the recommended retail prices in USD or equivalent currencies based on the multi-currency framework.
Registration Number: 226/68/48 Directors: P Gowero (Chief Executive Officer), M P Karombo, E E Mpisaunga. M M Valela Secretary: A Makamure