Delta Corporation highlights Zimbabwe's economic fragility amidst revenue growth

DELTA Corporation, Zimbabwe's leading brewer and soft drinks manufacturer, has painted a stark picture of the nation's economy, highlighting its persistent fragility despite signs of resilience in consumer spending.

- TAWANDA KAROMBO

This comes amid intensifying competition in some of the company's product categories and poor economic policies that are weighing down manufacturers. Delta Corp has the highest capitalisation on the Zimbabwe Stock Exchange. For the year to the end of March the company raised revenues by 5% to $807 million. However, this revenue increase was achieved against the backdrop of a tough operating environment.

"Overally, the economy remains fragile and presents significant operational challenges," said Todd Moyo, chairman of Delta Corp on Thursday.

Moyo said the local operating environment was fraught with "challenging route to market policies, constrained market access arising from poor road infrastructure and rehabilitation programs, high inflation" and an unstable domestic currency.

However, consumer spending in Zimbabwe has remained resilient, benefiting from mining activities, government infrastructure projects as well as rising diaspora remittances.