President Mnangagwa commissioning a new Delta plant, 2023 The country’s biggest business group says the government backs foreign investors over its own. The Confederation of Zimbabwe Industries (CZI) says incentives granted to new foreign investors are shutting out local companies that have been pouring money into expansion, but without enjoying the same perks. “CZI is concerned that the Government of Zimbabwe currently has a bias towards Foreign Direct Investment, with a multitude of incentives being given to new foreign investment in sectors where local investors are already operating,” the CZI says in a paper submitted ahead of the national budget.
Local companies, CZI says, have been spending heavily on expansion but “without qualifying for any new incentives”. The result is that “new foreign investors have a competitive edge over local investors, not due to superiority of technology, but due to the tax incentives that they get. This results in newly established foreign companies becoming more competitive, taking up market shares from existing investors.” CZI says incentives must be based on the investment itself, and not on where the investor is from.
“This ensures that existing investors also compete to expand their businesses, instead of only incentivising foreign investors.” It’s a complaint long made by some of the country’s biggest firms. Delta, the country’s largest beverage maker, has previously complained of regulations that create “an uneven playing field”. “We’ve no issues fighting competition.
[paywall]
All we ask for is that the market is fair, that the new entrants come on terms that do not result in them being funded by us Zimbabweans,” Delta executive Alex Makamure repeated recently. All we ask for is that the market is fair…”With reports that rival Varun plans to enter the lager business, Delta execs Alex Makamure and Matts Valela speak on how they’re ready to compete.Previously, Delta has complained about tax…https://t.co/ppR3n6fzlwpic.twitter.com/I8IlliJ8yJ— newZWire (@newswireZW)November 13, 2025 “We’ve no issues fighting competition. All we ask for is that the market is fair…”With reports that rival Varun plans to enter the lager business, Delta execs Alex Makamure and Matts Valela speak on how they’re ready to compete.Previously, Delta has complained about tax…https://t.co/ppR3n6fzlwpic.twitter.com/I8IlliJ8yJ Delta’s main rival, Varun, was granted Special Economic Zone (SEZ) status in 2019.
The package of benefits included zero-rated corporate tax for the first five years, and 15% thereafter, lower than the 25% existing firms pay. Varun also enjoys duty-free importation of equipment and raw materials, as well as zero-rated capital gains. These incentives helped Varun compete aggressively on price against Delta, gaining market share.
Many local firms have been expanding. Delta has invested significantly over recent years, including new bottling lines and expansion of its breweries. Innscor, the country’s biggest food manufacturer, has invested US$318 million over the past five years in expansion and plant maintenance.
[/paywall]
