Harare - The inability of Zimbabwean institutions to make foreign payments means Anheuser-Busch (AB) InBev will have to wait a bit longer before it can enjoy dividends from its Zimbabwean associate Delta Corporation.
Speaking at an analysts' briefing on Wednesday, financial director Matts Valela said the company is sitting on about $28m in dividends meant for its major shareholder AB InBev, due to the ongoing liquidity crisis in the country.
Company secretary Alex Makamure added that his company, which also has a $20m backlog on payments to its foreign suppliers, has since stopped applying to have the dividends transferred as it prioritises payment for key supplies.
“We haven’t actually bothered to make an application (for dividend payments) as we are prioritising business operational issues (such as payment for consignments),” said Makamure.
Minority foreign shareholders have however been paid.
At Wednesday’s briefing, Delta also declared another healthy final dividend of 2.45 US cents in addition to a 3.00c interim dividend, taking its full-year dividend to 5.45c from earnings per share of 5.70c.
Zimbabwe's foreign payments backlog currently stands at $185m, according to the Reserve Bank of Zimbabwe, but Makamure believes the figure does not capture other obligations such as dividend payments.
Businesses, especially manufacturers and mines, have been struggling to make foreign payments since the banknote shortage intensified at the beginning of 2016.