By Business Reporter-One of the country’s largest retail chains, OK Zimbabwe is auctioning off four supermarkets and other key properties in a desperate attempt to stay afloat amid Zimbabwe’s deepening economic collapse driven by the failure of the Zimbabwe Gold (ZiG) currency.
The shocking move was announced Thursday at an Extraordinary General Meeting (EGM) held in Harare, where shareholders endorsed a sweeping rescue package that includes raising US$20 million through a rights offer and disposing of immovable assets to raise an additional US$10.4 million.
Group chairman Herbert Nkala revealed that the affected properties include flagship outlets such as OK Mbuya Nehanda in Harare, OK Gweru, OK Glen View, and OK Malvern in Waterfalls. Other assets on the auction block include a warehouse in Workington, a commercial stand in Borrowdale, and another along the Harare-Masvingo Highway in Southlea Park.
The drastic measures come as the retail sector buckles under Zimbabwe’s hyperinflationary environment and chronic currency instability. The ZiG, introduced with much fanfare by the Reserve Bank in April 2024 to replace the Zimbabwe dollar, has already lost significant value, decimating consumer purchasing power and choking off capital for businesses reliant on local liquidity.
“The economy is in freefall, and the ZiG has failed to inspire the confidence it was meant to restore. Companies are struggling to restock, pay suppliers, and even service basic debt,” said an analyst with a leading financial services firm.
Nkala said the rescue plan—underwritten by key shareholders such as the National Social Security Authority (NSSA), Datvest Nominees, and Old Mutual Life Assurance Company—will be used to restock shelves, repay overdue creditors, modernise stores, and implement new technologies.
The US$20 million renounceable rights offer will see the issuance of 1.83 billion new shares at a subscription price of US$0.0109 each, payable in hard currency. Shareholders will receive 1.37 new shares for every 1 share held as of July 21, 2025.
In a bid to steady the ship, the board has also been reconfigured, and former executives have been temporarily brought back to provide leadership while a new executive team is appointed to drive the recovery strategy.
According to a circular issued ahead of the EGM, the asset disposal and recapitalisation efforts are part of a broader, long-term turnaround plan to rebuild supply chain trust, improve operational efficiency, and prevent further erosion of shareholder value.
The crisis at OK Zimbabwe reflects the wider economic devastation in Zimbabwe’s retail sector, where companies are closing branches, cutting staff, and scaling down operations due to a toxic mix of inflation, shrinking demand, and policy instability. As the government continues to blame sanctions and “economic saboteurs,” ordinary citizens and struggling businesses are left paying the price.