OK Zimbabwe Undertakes Major Restructuring Amid Economic Downturn
By Loyd Matare
Zimbabwe’s retail sector is facing unprecedented challenges, with the country’s economic downturn showing no signs of abating.
The southern African nation has been grappling with hyperinflation, foreign currency shortages, and a debilitating liquidity crisis, which have collectively taken a toll on the retail industry—with the Confederation of Zimbabwe Industries (CZI) recently expressing doubts over the fiscal authorities’ capability to attain a 3% month-on-month inflation rate by year-end.
Against this backdrop, one of the country’s leading retail chains, OK Zimbabwe, has undertaken a major restructuring exercise in a bid to stay afloat.
According to Margaret Munyuru, Company Secretary, the retail giant has been facing operating challenges that have necessitated a comprehensive business review and restructuring aimed at enhancing operational efficiency and driving sustainable growth in a dynamic market.
“The restructuring exercise is aimed at streamlining our operations, reducing costs, and improving our competitiveness in the market.”
As part of the restructuring exercise, the company has announced the conclusion of voluntary separation agreements with three of its senior executives, including the Chief Executive Officer, Chief Financial Officer, and Supply Chain Director.
The departing executives have been replaced by a team of experienced retailers who have been tasked with assisting the Board with the restructuring and turnaround of the company.
“We would like to acknowledge the outgoing Executive team for their service through this challenging period,” Munyuru said.
“We also welcome the new team, who bring a wealth of experience and expertise to the table. We are confident that they will play a key role in stabilizing and turning the business around over the next six months.”
This comes as the retail giant has been forced to close several of its branches nationwide due to the economic downturn. The closures have resulted in significant job losses, adding to the country’s already high unemployment rate.
