Schweppes Zimbabwe has not been manufacturing Mazoe Orange Crush for the past three weeks. It is understood that the US$10m debt emanated from concentrates for cordials supplied by the world’s leading soft drink manufacturer.Beverages manufacturer, Schweppes Zimbabwe Limited, has stopped producing its flagship cordial drink, Mazoe Orange Crush, after The Coca-Cola Company which supplies critical ingredients of the product, cut off supplies due to an estimated US$10m debt.Mazoe Orange Crush is manufactured and distributed by Schweppes Zimbabwe under licence from Coca-Cola whose other products bottled by Schweppes are Minute Maid juices, Bonaqua still water, and Schweppes still water.
Schweppes Zimbabwe has not been manufacturing Mazoe Orange Crush for the past three weeks. It is understood that the US$10m debt emanated from concentrates for cordials supplied by the world’s leading soft drink manufacturer.This has seen Coca-Cola stopping supplies until the debt is settled.This could only be the beginning as international suppliers, who are owed about US$1.2bn, begin to press for the settlement of legacy debts. Several local companies have been struggling to continue getting supplies of critical raw materials on credit from offshore suppliers due to the non-payment of legacy debts, also known as blocked funds.Off shore suppliers have threatened to cut supplies to Zimbabwean firms, and the majority of them are now demanding pre-payments until the legacy debts have been settled. Charles Msipa, Schweppes managing director, yesterday confirmed the debt owed to Coca-Cola.
“Yes, there is an amount due and need to be paid so that the release of the concentrate can be done,” Msipa said. “It’s a forex issue which is causing frustration. Part of the resolution is that we are working with local banks and the Reserve Bank of Zimbabwe because that amount due, though it is less than US$10m, is legacy debt accrued over three years. So, this is part of the blocked funds.”
Alex Makamure, Delta company secretary, says that the problem was caused by legacy debts and was also administrative.“All companies are buying imported raw materials on pre-paid basis due to legacy debts,” Makamure said. “The delay in the purchase of ingredients for Mazoe Orange Crush arose from administrative issues on the lodging and settlement of a letter of credit.”
The RBZ revealed that it would this month issue financial instruments worth about US$1.2bn to local companies to balance their books. The RBZ would then next year start paying the international suppliers owed. The viability of several companies has been under serious threat as a result of legacy debts, denominated in foreign currency following far-reaching currency reforms by the government in June this year.
The debt burden has spooked business and companies, which are now finding it difficult to borrow from offshore creditors and financiers.Most lenders across the world have now become risk aversed when dealing with Zimbabwean companies. The debts have continued to weaken companies’ balance sheets and remain a deterrent to their chances of courting foreign investors.
Most investors demand clean balance sheets before extending the much-needed fresh international capital. Schweppes, which recently introduced a tomato business in Norton, is said to be struggling due to a plethora of challenges, including the influx of cheap imported products.The challenges at the Norton factory, the company said, was delaying the prospects of opening another plant at Esigodini in the Matabeleland South Province.chweppes is planning to scale up exports to generate foreign currency. The company has been exporting to Zambia, Namibia, Botswana, South Africa and Mozambique, but these have been limited.
Last month, Schweppes commissioned a US$2m one-megawatt solar generating plant in Harare. The project is the biggest rooftop solar generation plant in Sub-Saharan Africa, outside South Africa. The solar plant will see the company cutting its electricity bill by about 67%.Speaking at the launch, Msipa said operating on back-up generator had driven costs to over 40% of the group’s total expenses, from 25%. The company took five months to complete the project and expects the plant to play an important role in the provision of constant electricity in the wake of the current power challenges.
Electricity consumers are subjected to crippling rolling blackouts which lasts up to 18 hours daily, resulting in reduced production. Capacity utilisation for the manufacturing sector is below 40%.
Schweppes Zimbabwe also has significant shareholding in Beit Bridge Juicing, which supplies about 50% of Schweppes’ requirements. Most citrus farmers prefer to export their product where they fetch higher prices than what they get at Schweppes.
The year 2006 marked a turning point in my life. I was a young man, wandering and seeking my purpose, when I met the love of my life. Her smile radiated warmth and her laughter was infectious, in that moment I knew she was the one. I took a leap of faith and asked her out, and as we got to know each other, my love for her grew with each passing day. Her compassion for others, her zest for life, and her unwavering support made me realize she was the missing piece I never knew I needed. And as
The world is in tears and great shock after the passing of AKA (SA hip hop star) who was killed in Durban. One of most feared and powerful magicians, “Papa” Isaac Makomichi from Masvingo, Zimbabwe has claimed he can perform some magic to resurrect AKA for at least 3 hours. Makomichi also said he doesn’t want one-eyed people to witness the “resurrection event.” The magician (Isaac Makomichi) is known for love potions and shocking magi
opposition party CCC has no funds due to lack of oligarchies within the party leaders, "The party is bankrupt ,we don't have funds."- Vice President Biti . Oligarchy wave hit opposition party CCC , the party is not yet launched, It has no structures ,the party has no funds and budget . Lack of accountability has corroded trust within opposition party CCC . Well-wishers and donors who were helping CCC with funds requeste
Comedian and social media personality Mai TThas pleaded with her ex-husband Tinashe Maphosa to sign their divorce papers as she cannot wait to be remarried. Mai Titi made the plea in a Facebook post where she also revealed that Maphosa has not been attending court sessions for a lawsuit he filed against the comedienne. Nhaimi undertaker mupenyu here zvatakutongodida kuma courts maroya ake asingauye. Asi arikushaya mari kana kuti akafa? I&rsqu
It is a known fact that recently, CCC Harare Mayor Councillor Mafume, also an SDA member refused for Mr Tagwirei to refurbish Rufaro stadium. Beyond the political tussle is a fight for the soul of the SDAs churches political soul. The SDA church was predominantly foreign funded from conception, and the CCC has always considered i
Socialite Mai titi concerned about Tinashe Maphosa's silence in a statement Mai titi posted on her Facebook page saying "Nhaimi undertaker mupenyu here zvatakutongodida kuma courts maroya ake asingauye. Asi arikushaya mari kana kuti akafa? I'm now worried ka i Kounotangirey nyaya dzemari usingazvikwanise? Usafeo usina kusigner divorce purizi unongozivawo handigone kugara ndisina kuchata futi k Ndaramba kuita
Tindo Gosso is claiming that the baby is his whilst The Nigerian guy claims to be the biological father too It is being alleged that Moana's sister dated Tindo gosso after breaking up with the Nigerian guy and she got pregnant .Now there is a conflict between Tindo Gosso and the Nigerian guy as they both claim to be the Father of the baby. Recently ,Tindo gosso was seen in pictures holding the baby which raised the concerns
Dj Fantan Airs his Two cents concerning his controversial album in a statement DJ fantan says "Ndanga ndanzwa nevanhu vachiti ko sei ndakanyara iye mukuru akabuditsa dambarefu. Vamwe ndai ignore but since mibvunzo yawanda here is my point of view. Yes I was excited to hear about the project. I was happy to see other artistes featuring for once pama gitare emukuru. This time he included other artists which was a dream come true for all of us, vai
FACTS : 1. You are in debt because you wanted to compete with a renewal of vows (not even a wedding) 😅 2. You have been engaged at least 3 times in a space of 1.5 years 🤨 3. You were never legally married but stood in a field to make the public happy - no marriage certificate to show up to today 😛 4. Your Facebook tete bororwed you money to marry yourself for likes 💅🏽 5. Your wedding was sponsored. You can’t even have wedd
In a statement Tom Deuschle deduced that there can't be Pastors4ED ,"you Can't be a Pastor for ED ,you can only be a pastor for our Lord Jesus."He added that Pastors are being manipulated by the state to support political ideologues.He went on to say that this Pastors4ED is an abomination and ridiculous .This just shows the deep hatred of the whites towards Zimbabweans as Tom Deushle claimed his facts without full understanding and knowledge of what is meant by Pastors4ED .T