Zimbabwe: Delta Corp to only accept hard currency to fight dollar shortage

Delta Corp Ltd., part owned by Anheuser-Busch InBev SA/NV, told Zimbabwean customers it will only accept hard currency for its beverages as local businesses struggle to cope with foreign-exchange shortages, Bloomberg reported on January 3.

The maker of Castle Lager, Chibuku sorghum beer and a range of soft drinks hasn�t been able to pay some international suppliers for �extended periods,� choking off access to further credit, the Harare-based company told retailers and wholesalers in a letter dated Jan. 2. Delta, which will implement the measure from Friday, January 4, isn�t receiving enough foreign currency from banks to pay for imports, it said.

�Our business has been adversely affected by the prevailing shortages of foreign currency,� wrote Delta, about 23 percent owned by the world�s biggest brewer. This has led to orders not being met or prolonged stock shortages, the company said.

The southern African nation�s biggest company by market value is feeling the effects of a crisis that has its roots in Zimbabwe�s decision to abandon its own currency in 2009 in favor of the dollar. The central bank created electronic money, known as Real Time Gross Settlement dollars, or RTGS$, to lend to the government and introduced bond notes backed the U.S. currency.

�The company doesn�t trade on the parallel or black market and doesn�t subscribe to any exchange rate between the U.S. dollar and the RTGS$ or bond notes, as they�re not currencies,� Delta said.

Zimbabwe is in the throes of its latest economic crisis, just over a year after President Emmerson Mnangagwa came to power following the ouster of Robert Mugabe. Rampant inflation has been exacerbated by the central bank�s decision in October to order lenders to separate dollars and RTGS$ -- effectively recognizing that the country has two currencies and frightening away already wary foreign investors.

Delta�s decision follows a similar move by Simbisa Brands Ltd., a local operator of restaurants such as Nando�s grilled chicken and South African brands like RocoMamas burgers. It�s offering customers discounts to pay in dollars, though will still accept RTGS$, local cards, mobile money and bond notes.