News / National
Anti-smuggling blitz bolsters local beverage production
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Zimbabwe's aggressive anti-smuggling blitz is beginning to bear fruit, easing pressure on local beverage producers and setting the stage for increased production and market growth, according to Delta Corporation Limited.
Presenting the group's financial results for the year ending March 2025, Delta, the country's largest producer of alcoholic and non-alcoholic beverages, credited the government-led crackdown on smuggled goods for stabilising the domestic market and creating space for local brands to thrive.
Group Finance Director Mr Alex Makamure told ZBC News that the impact of the anti-smuggling initiative became most visible in the final quarter of 2024, as illicit imports declined and consumer demand for locally manufactured beverages rose.
"The effects of the anti-smuggling drive on our products or operations began to be realised later in the last quarter," Makamure said. "The reduction in imported products provided an opportunity for us to maximise production and accelerate growth. The financials we presented today reflect that growth trajectory, which we expect to carry through 2025."
He added that while the crackdown has created breathing space for local producers, competition from regional players remains, making it critical to maintain stable economic policies that support local industry.
"There is still competition from other regional players, but we're committed to strengthening domestic brands. Our focus remains on increasing output and unlocking value for shareholders, supported by a more stable macro-economic environment," Makamure added.
Zimbabwe's beverage sector had been under pressure from smuggled and counterfeit imports, which not only eroded market share but also posed serious health risks to consumers. However, optimism has been rekindled since government launched the anti-smuggling campaign late last year to protect local industries.
Industry analysts say the improved policy environment and regulatory enforcement are vital to the recovery of the manufacturing sector, which has long battled against an uneven playing field caused by illicit trade.
With domestic brands now regaining ground and confidence returning, companies like Delta are poised to ramp up production and drive forward Zimbabwe's industrial revival agenda.
Presenting the group's financial results for the year ending March 2025, Delta, the country's largest producer of alcoholic and non-alcoholic beverages, credited the government-led crackdown on smuggled goods for stabilising the domestic market and creating space for local brands to thrive.
Group Finance Director Mr Alex Makamure told ZBC News that the impact of the anti-smuggling initiative became most visible in the final quarter of 2024, as illicit imports declined and consumer demand for locally manufactured beverages rose.
"The effects of the anti-smuggling drive on our products or operations began to be realised later in the last quarter," Makamure said. "The reduction in imported products provided an opportunity for us to maximise production and accelerate growth. The financials we presented today reflect that growth trajectory, which we expect to carry through 2025."
He added that while the crackdown has created breathing space for local producers, competition from regional players remains, making it critical to maintain stable economic policies that support local industry.
"There is still competition from other regional players, but we're committed to strengthening domestic brands. Our focus remains on increasing output and unlocking value for shareholders, supported by a more stable macro-economic environment," Makamure added.
Zimbabwe's beverage sector had been under pressure from smuggled and counterfeit imports, which not only eroded market share but also posed serious health risks to consumers. However, optimism has been rekindled since government launched the anti-smuggling campaign late last year to protect local industries.
Industry analysts say the improved policy environment and regulatory enforcement are vital to the recovery of the manufacturing sector, which has long battled against an uneven playing field caused by illicit trade.
With domestic brands now regaining ground and confidence returning, companies like Delta are poised to ramp up production and drive forward Zimbabwe's industrial revival agenda.
Source - zbc
