HARARE – Zimbabwe’s largest drinks company Delta Corporation has resorted to increasing the price of clear beer by an average 25 percent after the government stopped it from selling exclusively in United States dollars.
“The adjustment of the wholesale price is meant to cushion against the significant increases in local costs, as confirmed by the official inflation statistics,” Delta, a unit of the world’s largest beverages maker Anheuser-Busch InBev, said in a statement.
Delta had on January 2 announced plans to sell its drinks in the US dollar to remain viable in the face of an acute foreign currency crunch but dropped the decision after talks with the government and the central bank.
After the talks, the parties said in a statement the decision was “in the spirit of a multicurrency framework” and that the central bank would endeavour to provide the foreign currency required by Delta to operate.
Zimbabwe abandoned its own dollar a decade ago after it was rendered worthless by hyperinflation, adopting the use of the greenback and other foreign currency. It has however struggled with chronic shortages of forex due to weak exports.