Harare, (New Ziana) – OK Zimbabwe Limited, one of Zimbabwe’s largest retail chains, has announced it expects to post a “significant loss” for the financial year ended March 31, 2025, citing severe operational and financial challenges.
Group secretary, Margaret Manyuru, attributed its struggles to a harsh economic climate marked by high inflation, exchange rate instability and liquidity constraints, which have disrupted supply chains and eroded profitability.
She said formal retailers, which are obliged to accept local currency, and use official exchange rates, had been placed at a disadvantage compared to informal traders operating without the same regulatory burdens.
On the other hand, inflationary pressures had driven up costs, forcing frequent price adjustments which led to a fall in consumer demand.
She also cited liquidity shortages across the economy which reduced customers’ purchasing power, and limited the company’s ability to generate steady cash flows.
This, together with working capital shortages, led to unpaid supplier debts and severe stock shortages across its stores in the country. “The company admitted that many suppliers have halted deliveries due to outstanding payments, leaving shelves empty and sales plummeting. Over the past six months, revenue has been insufficient to cover operating costs, pushing (the) retailer into deeper financial trouble,” said Manyuru.
To salvage the situation, she said, OK Zimbabwe had approved a US$30 million capital raise through a mix of rights issues, private placement and debt instruments with the funds earmarked to strengthen the balance sheet and improve liquidity, restock stores by clearing supplier arrears as well as support a broader turnaround strategy to stabilise operations.
She said the company has already advised shareholders and the public to exercise caution when trading its shares, signalling potential volatility ahead.
Analysts have warned that without successful recapitalisation, OK Zimbabwe could face further deterioration, or even insolvency if market, conditions do not improve.
New Ziana
