OK Zimbabwe Limited has restructured its executive team, parting ways with key leaders to stabilize the business amid operational challenges. Returning CEO Willard Zireva and CFO Alex Siyavora aim to improve the retailer’s performance as the company navigates declining revenues and supply chain disruptions. Various strategies, including partnerships and new procurement models, are focused on restoring stock levels and adapting to economic pressures.
OK Zimbabwe Limited has enacted a significant overhaul of its executive leadership as part of a restructuring initiative aimed at stabilizing the business amidst ongoing operational difficulties. This restructuring involves the voluntary departure of several key figures, including Chief Executive Officer Maxen Phillip Karombo, Chief Financial Officer Phillimon Mushosho, and Supply Chain Director Knox Mupaya.
In their place, Willard Zireva, who previously served as CEO until 2017, is reappointed to lead the company again. Alex Siyavora, who succeeded Zireva as CEO and served until 2021, assumes the chief financial officer role, while Muzvidzwa Richard Chingaira steps in as the new supply chain director. They have been tasked with reversing the company’s fortunes over the next six months while a search for permanent successors is underway.
The board expressed gratitude for the outgoing executives’ contributions and is optimistic that the new leadership team will drive a recovery for OK Zimbabwe. This revamp occurs as the retailer seeks to restore normal inventory levels before this financial year’s conclusion, aided by innovative procurement strategies and support from suppliers and financial entities.
OK Zimbabwe has emphasized that the health of Zimbabwe’s formal retail industry is closely tied to the stability of the local exchange rate. In light of this, the company has welcomed new monetary policies that promote some flexibility in foreign exchange, while also calling for a clear path toward a fully market-based exchange rate system.
The company reported a 36% decline in revenue for the third quarter ending December 31, 2024, a downturn attributed to decreased consumer spending, currency devaluation, and disruptions in the supply chain. Issues with local currency liquidity have challenged access to funding, leading to a sharp increase in US dollar-denominated obligations following the Zimbabwean dollar’s devaluation in September 2024.
Stock availability has dropped to about 50% of typical levels, exacerbated by limited supply from manufacturers and distributors. The retailer noted that low collections in US dollars, peaking at just 20% of total revenue, compounded supply challenges, with suppliers demanding shorter trading terms and, occasionally, prepayments in local currency.
The situation has intensified the pressure on working capital and reliance on short-term funding resources, alongside the operational interruptions caused by frequent power outages. Consequently, OK Zimbabwe has closed four branches in Harare: Glen Norah, Kuwadzana 5, Chitungwiza Town Centre, and Robson Manyika Street.
Despite this quarterly revenue decline, the company achieved a 10% increase in year-to-date volume compared to the previous year. It continues discussions with fiscal and monetary authorities and collaborates with supplier partners and financiers to stabilize its operations.
In summary, OK Zimbabwe Limited is undergoing a major reshuffle in its leadership to address significant operational challenges and declining revenues. Key executives have stepped down, and returning and new leaders are expected to implement strategies for improvement. The company recognizes the importance of stable monetary policies and aims to address stock shortages and improve supply chain efficiencies while grappling with broader economic issues affecting the retail sector.
Original Source: www.zimlive.com
