Story by Peter Chivhima
ZIMBABWE’S beverage manufacturing sector is appealing for enhanced government support to stabilise sugar supplies and reduce production costs.
The call was made this Tuesday during a briefing with the Parliamentary Portfolio Committee on Industry and Commerce, where Delta Corporation Finance Director, Mr Alex Makamure, detailed the operational bottlenecks affecting the sector.
“The main suppliers of refined sugar are StarAfrica (Goldstar Sugars) and Tongaat Hullets (Hippo Valley and Triangle). Over the years they have failed to meet the quantity and quality requirements. Given these challenges, the Ministry of Industry and Commerce has agreed with the bottlers that they be allowed to supplement their requirements from imports,” he said.
However, sugar remains on the controlled list of imported products, attracting a protective import duty of US$100 per tonne a cost the sector says adds significant pressure on pricing.
In addition, the beverage sector continues to grapple with the implications of the sugar tax, introduced in February 2024, which Mr Makamure says led to price hikes of between 15% and 45%, especially for sugar-laden products such as Mazoe Orange Crush.
“Prices of Sugar added on soft drinks increased by 15 % to 45 % following the introduction of the tax in February 2024. The highest increase were on cordial such as Mazoe Orange Crush. The process of cordials have been moderated since January 2025 after the surtax was halved to 0.0005/g,” Mr Makamure said.
In response, Chairperson of the Portfolio Committee on Industry and Commerce, Honourable Clemence Chiduwa, urged Delta Corporation and other industry players to strengthen engagements with domestic sugar producers to build sustainable supply chains.
“We encourage you to find each other local companies so that you increase your production. This will create a balance between your production and the market. However as the Committee will further discuss the issues you have raised,” he said.
To ease some of the financing constraints in the productive sectors, including the sugar industry, the government through the Reserve Bank of Zimbabwe, has put in place a Targeted Finance Facility (TFF).
The facility is aimed at providing working capital to business in both the manufacturing and retail sectors.
Industry experts note that continued coordination between producers, government and policymakers is key to maintaining competitive pricing, improving food processing capacity and aligning Zimbabwe’s sugar industry with regional benchmarks.
