Zim firms face no water for more than five days

Harare - The bad news just doesn't stop for businesses operating in Zimbabwe.

Already reeling from a myriad of economic challenges that include a slump in aggregate demand, competition from cheap imports and a cash crisis that just won't go away, Zimbabwe-based businesses are now facing a different kind of challenge.

According to the latest trading update released by the country's biggest beverages brewer and distributor, SABMiller's Zimbabwean associate Delta Corporation, a new kind of risk has emerged.

"There is an emerging risk on water supply due to depleted dam and ground water sources causing production disruptions," said Delta in its trading update for the quarter ended September 30 2016.

To confirm Delta's plight, the City of Harare, where most of the company's plants are located, on Sunday issued a water rationing schedule that will see some areas going without water for five days or more . The cuts have been triggered by reduced water levels in the main sources of supply to the city. 

The latest challenge adds to the company's woes and might result in a further drop in volumes and revenue.

READ: SABMiller Zim unit down on dollar crunch

Management also talked of delays in payments to foreign suppliers which had resulted in the late commissioning of new Chibuku Super plants at Masvingo and Kwekwe. 

Zimbabwean businesses have for the better part of the year failed to pay foreign suppliers in time, as forex accounts became depleted.