Zimbabwe’s second largest company in terms of market capitalisation, Delta Corporation, has urged government and regulators to engage stakeholders before making major policy pronouncements to maintain market confidence.
It says in its latest trading update that the 2 percent transaction that was announced by Finance Minister Mthuli Ncube on 1 October took both business and consumers by surprise raising policy risks and undermining market confidence.
The price of commodities rocketed after the announcement and the bond notes plunged against the United States dollar.
The government, however, delayed implementation of the tax and revised exemptions and only brought it into force on Saturday.
The Confederation of Zimbabwe Industries which initially rejected the tax changed its mind on Friday last week.
Delta, which is now part of AB InBev says lager sales for the six months to September went up by 54 percent boosted by consumer demand and election-related spending.
Sorghum beer sales went up by only 2 percent. It says while packaging for Chibuku Super improved, the standard Chibuku production was limited by the shortage of scud bottles.
Sparkling beverages grew by only 3 percent because of problems in securing imported raw materials. This resulted in extended periods of production stoppages and out of stock situations.
Revenue, however, grew by 37 percent.
The half year results will be published on 8 November.
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