HARARE – OK Zimbabwe Limited has overhauled its executive leadership as part of what it says is an urgent restructuring effort to stabilise the business amid mounting operational challenges.
The company has parted ways with Chief Executive Officer Maxen Phillip Karombo, Chief Financial Officer Phillimon Mushosho, and Supply Chain Director Knox Mupaya through voluntary separation agreements.
Willard Zireva, who retired as CEO in 2017, returns to the helm of the company alongside Alex Siyavora, who assumes the role of chief financial officer. Siyavora succeeded Zireva as CEO and led OK Zimbabwe until 2021. Muzvidzwa Richard Chingaira is the new supply chain director.
The trio has been tasked with steering the retailer’s turnaround over the next six months as the board searches for permanent replacements.
The board acknowledged the contributions of the outgoing executives and expressed confidence that the new leadership team would steer the retailer toward recovery.
The restructuring exercise comes as OK Zimbabwe, in a recent trading update, said it is working to restore normal stocking levels before the end of the financial year through new procurement models and support from supplier partners and financial institutions.
The company has previously said the fortunes of Zimbabwe’s formal retail sector are tied to exchange rate stability. In that light, OK Zimbabwe welcomed the recently announced monetary policy measures, which removed some limitations and introduced greater flexibility in the foreign exchange market but called for absolute clarity on the roadmap towards a full market-determined exchange rate system.
OK Zimbabwe reported a 36 percenr decline in revenue for the third quarter ended December 31, 2024, attributing the drop to subdued consumer spending, currency devaluation, and supply chain disruptions.
The company faced acute local currency liquidity shortages, which restricted access to funding for working capital cycles. A sharp devaluation of the Zimbabwean dollar (ZWG) in September 2024 nearly doubled the group’s US dollar-denominated obligations in loans and creditor balances.
Stock availability dropped to around 50 percent of normal levels due to limited supplies from manufacturers and distributors. The company reported that low US dollar sales collections, at times as low as 20 percent of sales revenue, exacerbated supply challenges. Suppliers continued to insist on shorter trading terms and, in some cases, prepayments for supplies invoiced in local currency, the retail giant said in a recent trading update.
This strained the group’s working capital and increased reliance on short-term funding. Power outages further disrupted operations and increased costs. In response, OK Zimbabwe closed four branches in Harare—Glen Norah, Kuwadzana 5, Chitungwiza Town Centre, and Robson Manyika Street.
Despite the quarterly decline, the group recorded a 10 percent year-to-date volume growth compared to the previous year. The company remains in consultation with fiscal and monetary authorities and continues to engage supplier partners and financial institutions to stabilise operations.
