By Jonathan Mbiriyamveka
Delta Corporation finds itself grappling with mounting challenges as it navigates significant tax disputes with the Zimbabwe Revenue Authority (ZIMRA) and operational disruptions in regional markets.
The company is contesting $73 million in tax assessments issued by ZIMRA, covering periods from 2019 to 2022.
The disputes center on ZIMRA’s insistence that taxes should have been paid exclusively in foreign currency, overlooking local currency payments made at the time.
With adverse court rulings and ongoing appeals, Delta has already paid $9.2 million under the “pay now, argue later” principle.
The company’s management remains engaged with authorities, seeking clarity and rational resolutions to these complex issues.
In Zambia, operational challenges have further compounded Delta’s difficulties. Natbrew volumes fell by 28% for the nine months ending December 2024 due to power outages and delays in commissioning diesel generators.
These issues, combined with high maize costs and a weakened Kwacha, have placed significant pressure on operating margins.
Efforts to stabilize the supply chain and revive the market are ongoing, but the path to recovery remains steep.
The resolution of these tax and operational issues will be critical for Delta Corporations sustained performance.
The company’s ability to navigate these hurdles will set a precedent for other businesses operating in similarly challenging environments.
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