Chronicle Editor
Nokuthaba Brita Ncube, [email protected]
LISTED beverages producer, Delta Corporation Limited, says the implementation of policies that promote the stability of the local currency and access to foreign currency through formal banking channels could improve the operating environment.
Delta highlighted in a trading update for the third quarter ended December 31, 2024 that the operating environment in Zimbabwe remains complex, influenced by policy changes and currency concerns.
“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,” said the company.
Despite fluctuations in exchange rates, disruptions in utility supply and varied consumer spending patterns during the traditional summer peak period, demand remained relatively strong across all categories.
Consumer spending also remained resilient, benefitting from mining activities, the expansionary effect of the Government infrastructure projects, and the steady flow of diaspora remittances.
The firm noted that despite these challenges, the business remains well-positioned to seize any opportunities from increased consumer spending.
The company further highlighted that its focus remains on leveraging activities that generate aggregate demand and positioning the business for future growth.
In response to a difficult operating environment, businesses have demonstrated resilience through the adoption of low-cost operating models, diversifying products and expanding markets to include exports.
However, the Government believes sustaining the ease of doing business reforms plays an important role in creating an environment conducive to entrepreneurship and investment and allows the country to attract both domestic and foreign investors.
According to the Budget Strategy Paper: 2025, Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube has said sustaining ease of doing business also creates a favourable climate for innovation and the development of new businesses.
He noted that in 2025, the Government will develop a policy framework that supports sustainable business growth and enables entrepreneurs, both local and foreign, to operate with increased ease and efficiency.
Online Reporter