By Business Reporter-The entire board of OK Zimbabwe is stepping down in a sweeping leadership shake-up, as the struggling supermarket giant fails to recapitalise amid Zimbabwe’s deteriorating economic environment and the controversial introduction of the Zimbabwe Gold (ZiG) currency.
OK Zimbabwe has been unable to secure adequate funding to stabilise its operations, as investors and suppliers lose confidence in a hyperinflationary environment plagued by currency volatility, low consumer spending, and a collapsing formal retail sector.
Interim chief executive Mr Willard Zireva will assume the role of executive chairman following the resignation of long-serving chairperson Mr Herbert Nkala.
Other board members, including Ms Rose Mavima, Mr Tawanda Gumbo, and Mr Wonder Nyabereka, are also set to step down at the upcoming annual general meeting.
The resignations follow what insiders describe as an “urgent restructuring” effort by shareholders after the voluntary departure of former chief executive Mr Maxen Karombo, chief financial officer Mr Phillimon Mushosho, and supply chain director Knox Mupaya.
To stem the crisis, Zireva – who previously led the company for over two decades – has been recalled to provide continuity and restore supplier trust. He will be joined by former finance chief Mr Alex Siyavora and new supply chain director Mr Muzvidzwa Chingaira.
“The interim management will serve until the end of the financial year, after which a new executive team will take over to execute a recovery strategy,” the company said.
As part of this rescue plan, OK Zimbabwe is seeking to raise US$30.5 million through a combination of a renounceable rights offer and the sale of selected properties. The bulk of the capital—US$20 million—is expected to come from issuing 1.83 billion new shares, offered to shareholders at a 15% discount.
However, the capital-raising initiative is being hampered by Zimbabwe’s unstable economic fundamentals, with the newly introduced ZiG currency failing to restore investor or consumer confidence. All payments for the rights offer must be made in United States dollars, reflecting the market’s rejection of ZiG in favour of hard currency.
So far, shareholders controlling 73% of OK’s stock have committed to the rights issue, leaving a US$5.4 million shortfall. The company has secured underwriting from the National Social Security Authority, Datvest Nominees and Old Mutual to guarantee a portion of the raise.
In parallel, OK Zimbabwe plans to raise US$10.5 million through the disposal of immovable properties, some of which will be leased back to the retailer. These asset sales are being prioritised for their liquidity value given the dire economic conditions.
OK’s financial woes are compounded by internal inefficiencies—including poor capital allocation, delayed creditor engagement, and sluggish innovation—and external pressures such as shrinking consumer demand, rising input costs, and intense competition from informal traders who operate outside regulatory constraints.
As of February 28, 2025, the company owed over US$30 million in outstanding obligations: US$24 million to suppliers, US$5.1 million to service providers, and nearly US$880,000 in unpaid statutory dues.
OK Zimbabwe’s struggle to recapitalise reflects the broader collapse of formal retail in Zimbabwe’s dysfunctional economy. The failure to secure liquidity, even after decades of brand dominance, underscores the magnitude of the crisis facing legacy businesses under the Mnangagwa administration’s mismanaged currency and fiscal reforms.
The renounceable rights offer opens on July 21, 2025, and closes on August 4, 2025.