HARARE – African Distillers Limited (Afdis), a listed wine and spirits manufacturer, has expressed optimism that the Government’s intensified crackdown on illicit and smuggled alcohol will help curb unfair competition and boost the formal market.
Afdis, a subsidiary of Delta Corporation, has previously raised concerns about the adverse impact of non-compliant and smuggled products on its sales volumes and operations. Irregular imports from neighbouring countries, often evading taxes and regulations, have compounded the problem, leading to significant losses for the company.
In a third-quarter trading update to December 2024, Delta Corporation company secretary Ms Faith Musinga said, “It is hoped that the current blitz against illicit and smuggled alcohol will curtail unfair competition.”
The Zimbabwe Revenue Authority (ZIMRA), along with other border control agencies, has ramped up efforts to address smuggling. Travellers and cross-border traders have been urged to strictly comply with customs regulations, with ZIMRA warning that failure to declare goods may result in hefty fines or confiscation.
The crackdown is part of a broader Government effort to protect local industries and enhance tax revenues. Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube highlighted the detrimental effects of smuggling on the formal sector, stating, “Retailers and manufacturers have reported significant losses due to smuggled goods. This operation is aimed at addressing these challenges and supporting the sector.”
Afdis reported a 14% volume growth for the quarter and 12% year-to-date, driven by improved product availability and a reduction in informal imports. The Ready-to-Drink (RTD) and Wine segments saw growth of 12% and 47%, respectively.
The ongoing operation, which also targets contraband in supermarkets, wholesalers, and informal markets, underscores the Government’s commitment to tackling smuggling and fostering a fairer business environment.
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