Delta injects US$70m on projects to boost capacity

BUSINESS REPORTER

Zimbabwe’s biggest brewer, Delta Corporation has spent US$70m on its projects as the company moves to ramp up production to increase capacity.

The company yesterday commissioned three projects, which include Southerton Chibuku Super factory, soft drinks PET line and high-tech lager beer packaging line.

President Emmerson Mnangagwa officially opened the three projects.

Speaking at the commissioning ceremony Thursday, Delta CEO Matlhogonolo Valela told the delegates that these projects will have significant multiplier effects on the economy.

“Apart from the three new projects that you [President Emmerson Mnangagwa] are commissioning today, I am pleased to advise that we installed yet another line at our subsidiary, AfDIS bringing the total investment in capital expenditure to US$70m,” Valela said.

“These projects, your Excellency, will all be in full production within four months of each other, a record rapid investment programme never experienced before in our business.”

President Mnangagwa said Delta has invested US$169m since 2017, signalling a show of confidence in the government’s policies.

“This investment by Delta Corporation, which has been operating in the country for 125 years, demonstrates the confidence by players in the manufacturing industry in the business friendly policies being ushered by the Second Republic,” he said.

Valela said if consumer spending responds, there is opportunity for all value chain partners to increase output by 30% to supply lager beer, 33% to supply soft drinks and 33% to supply sorghum beer.

The agricultural value chain has contracted 12000 small-scale farmers in sorghum and maize growing and 7000 hectares in barley farming for direct inputs.

He expects the input support programme to expand given this growth.

Delta is deliberately localising the supply chain to encourage employment creation and economic growth.

The company supports over 20 000 retail customers and provides them with training on essential business skills as necessary.

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