Construction works on Rusape Chibuku Plant has in Zimbabwe has been halted due to challenges in raising enough foreign currency to import key components needed for the project.
Leading beverages manufacturer, Delta Corporation, Corporate Affairs Director, Alex Makamure explained that the plant will be constructed in phases, starting with civil works that do not require foreign currency. “The project is already behind as the company has exhausted the Chibuku Super capacity,” said Alex.
Rusape Chibuku plant
The latest development comes at a time the listed beverages manufacturer is eyeing Anheuser-Busch InBev (AB InBev)‘s Zambian and Malawian assets as the Belgian brewer exits the Sub-Saharan market.
The Zimbabwe Stock Exchange listed beverages manufacturer- which is 40% owned by AB InBev- in January said since the Budweiser maker was divesting out of the region, it had resolved to bid for assets available in the wake of an increasingly tough operating environment in Zimbabwe driven by foreign exchange scarcity.
Delta Corporation revealed plans to acquire United National Breweries, the leading South African traditional beer company, which manufactures brands such as Chibuku, Leopard, Ijuba, Tlokwe and Joburg beer brands and the traditional non-alcoholic maize based energy drink under City Mageu. The company operates through Lager Beer, Sparkling Beverages, and Sorghum Beer segments.
The plant’s component are being imported from Germany and South Africa. They have a lead eight months due to shipment logistics and full commissioning may take between 10 to 12 months from date of orders.