By Anyway Yotamu
Delta Beverages has sounded the alarm over Zimbabwe’s high local sugar prices, warning Parliament that current pricing and heavy taxation are threatening the viability of beverage manufacturing in the country.
Speaking before the Parliamentary Portfolio Committee on Industry and Commerce chaired by Zaka South MP Clemence Chiduwa, Delta Beverages Finance Director Alex Makamure said local sugar prices—currently pegged at US$900 per metric ton by Goldstar Sugars and US$890 by Tongaat Huletts—are significantly higher than import prices.
“Currently, imported sugar is landing at $800/mt before adding the 30% surtax. With the added cost of sugar tax, the impact of the sugar cost is a key determinant to the viability of our business,” Makamure told legislators.
The beverage giant says the situation has been worsened by a sugar tax introduced in February 2024, adding another US$100/mt to production costs. According to Makamure, the tax led to product price increases ranging from 15% to 45%, particularly affecting cordials like Mazoe Orange Crush.
“The prices of cordials have been moderated since January 2025 after the surtax was halved to $0.0005/g,” he said.
Despite this relief, beverage manufacturers continue to report mixed performance due to weakened consumer demand.
Most companies, Makamure noted, have absorbed the sugar tax by keeping prices low to prevent a collapse in sales volumes.
Local sugar producers insist there is ample supply. The Zimbabwe Sugar Association claims it had over 16,000 tons of carry-over bottler-grade sugar from the 2024 season and projects more than 90,000 tons of uncommitted stock in 2025.
Still, Makamure argued local suppliers fail to consistently meet industry demand.
“Over the years, they have failed to meet the quantity and quality requirements. Given these challenges, the Industry and Commerce Ministry agreed with the bottlers to supplement their requirements from imports,” he added.
He urged government to align sugar taxes with regional averages and only apply them to beverages exceeding 4g/100ml sugar content.
The sugar tax, introduced in the 2025 budget by Finance Minister Mthuli Ncube, aims to curb excessive sugar intake and fund cancer treatment and equipment.
