By Business Reporter – OK Zimbabwe’s long-serving executive and industry stalwart, Mr Willard Zireva, has been appointed executive chairman of the supermarket chain as part of a stabilisation strategy following the resignation of chairman Mr Herbert Nkala.
According to sources close to the company, Mr Nkala, along with board members Ms Rose Mavima, Mr Tawanda Gumbo, and Mr Wonder Nyabereka, will formally step down at the upcoming annual general meeting, paving the way for a new leadership phase at the retail giant.
Mr Zireva’s appointment is a vote of confidence in his deep institutional knowledge and proven leadership, having successfully led OK Zimbabwe as chief executive for over two decades. His return, initially in an interim capacity, is seen as a strategic move to restore stability and guide the company through a critical turnaround period.
“It is an interim arrangement in which he (Zireva) is expected to be the executive chairman for the next three years to achieve stability,” a source familiar with the matter said.
The leadership reshuffle follows an urgent restructuring effort by shareholders, which saw the exit of former chief executive Mr Maxen Karombo, chief financial officer Mr Phillimon Mushosho, and supply chain director Knox Mupaya, all through voluntary separation agreements.
In a bid to reinforce the executive team, Mr Alex Siyavora has returned as chief financial officer, while Mr Muzvidzwa Chingaira has taken over the reins as supply chain director.
OK Zimbabwe said the current executive management—comprising seasoned professionals brought back to stabilise the company—will remain in place until the end of the current financial year, after which a substantive leadership team will be appointed. This incoming team will be tasked with executing a new strategy anchored in operational rigour and strategic foresight.
In a circular outlining its new direction, the company said the reconstituted board will strengthen oversight and enhance governance as part of a broader transformation initiative.
As part of its recovery and growth strategy, OK Zimbabwe is seeking to raise US$30.5 million through a combination of a renounceable rights offer and the disposal of selected immovable properties.
The company aims to use the capital to settle legacy obligations, boost working capital, finance capital expenditure, and restore supplier confidence. Of the targeted amount, US$20 million is expected to come from the rights offer.
The rights offer will allow shareholders to subscribe for 1.37 new ordinary shares for every one share held on the record date of July 21, 2025, at a subscription price of US$0.0109 per share—representing a 15 percent discount on the 30-day volume-weighted average traded price as of May 23, 2025.
Shareholders holding 73 percent of issued share capital have already committed to supporting the rights offer through irrevocable commitments and underwriting agreements. Key institutional shareholders—the National Social Security Authority, Datvest Nominees, and Old Mutual—have collectively pledged US$16.54 million and provided bank guarantee letters.
To prevent any single shareholder from surpassing the 35 percent threshold that would trigger a mandatory offer under listing regulations, the underwriting arrangement has been carefully structured.
The rights offer will open on July 21, 2025, and close on August 4, 2025. In parallel, the company is targeting an additional US$10.5 million through the disposal of selected properties, subject to lease-back arrangements where applicable.
OK Zimbabwe said the asset sales would focus on properties offering optimal saleability and value, given prevailing market conditions.
The company’s restructuring is a response to a combination of internal missteps and external economic pressures. Internally, OK cited poor capital allocation, delayed creditor engagement, and slow market responsiveness. Externally, informal retail competition, rising input costs, weakened consumer spending, and declining foot traffic have taken a toll.
As of February 28, 2025, OK Zimbabwe’s overdue creditor obligations stood at over US$30 million, including US$24 million to suppliers, US$5.12 million in other payables, and US$880,000 in statutory obligations.
The appointment of Mr Zireva, described by many as a steady and respected hand, signals a renewed effort to return the supermarket chain to operational health and long-term sustainability.