HARARE – Zimbabweans must brace for a Christmas without one regular fixture at the dinner table: Mazoe Orange Crush.
Schweppes Zimbabwe Limited has stopped producing Mazoe in mid-November after the Coca-Cola Company stopped supplying critical ingredients over a US$10 million debt.
Charles Msipa, the Schweppes managing director, is blaming the Reserve Bank of Zimbabwe for failing to process foreign payments as the country goes through a severe foreign currency shortage.
“Yes, there is an amount due that needs to be paid so that the release of the concentrate can be done,” Msipa told the Business Times newspaper. “It’s a forex issue which is causing frustration. Part of the resolution is that we’re working with local banks and the Reserve Bank of Zimbabwe because that amount due, though it is less than US$10 million, is a legacy debt accrued over three years. So, this is part of the blocked funds.”
Mazoe might be 50 percent orange juice, but it also contains concentrates for cordials supplied by the world’s leading soft drink manufacturer, Coca-Cola.
Zimbabwean companies owe foreign suppliers about US$1.2 billion in legacy debts. The huge debt has led to some companies failing to access critical raw materials on credit owing to the blocked funds.
Alex Makamure, the company secretary for Delta Beverages who hold the local portfolio for Coca-Cola, said: “All companies are now buying imported raw materials on pre-paid basis due to legacy debts. 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.”
Mazoe Orange Crush is one of Zimbabwe’s best exports, and can be found in shops across Africa and Europe.
