In a dramatic turn of events highlighting Zimbabwe’s deepening economic crisis, OK Zimbabwe has announced the auctioning of four of its major supermarkets and several prime properties in a desperate attempt to salvage its operations and remain solvent. The move was unveiled at an Extraordinary General Meeting (EGM) held in Harare on Thursday, where shareholders overwhelmingly approved an ambitious rescue package aimed at raising fresh capital and stabilising the business.
Group Chairman Herbert Nkala told shareholders that the asset disposal strategy will form part of a larger two-pronged recovery plan. OK Zimbabwe is targeting the mobilisation of US$30.4 million—US$20 million through a rights offer and US$10.4 million from the disposal of immovable assets.
Among the properties set to go under the hammer are four key retail outlets: OK Mbuya Nehanda in central Harare, OK Gweru in the Midlands Province, OK Glen View, and OK Malvern located in Waterfalls. Also included in the asset disposal plan are a strategic warehouse in the industrial hub of Workington, a commercial stand in the upmarket Borrowdale area, and another property along the Harare-Masvingo Highway in Southlea Park.
The announcement sent ripples across the local business landscape, underscoring the magnitude of the challenges facing Zimbabwe’s retail sector in the face of hyperinflation, waning consumer spending, and persistent currency volatility.
Zimbabwe’s latest currency experiment—the Zimbabwe Gold (ZiG)—was introduced by the Reserve Bank in April 2024 to replace the collapsed Zimbabwe dollar. But within months, the ZiG has already lost considerable value, further eroding consumer confidence and squeezing liquidity for businesses. As a result, retailers like OK Zimbabwe are finding it increasingly difficult to stock shelves, meet supplier obligations, and service debts.
“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 a Harare-based financial analyst, speaking anonymously due to the sensitivity of the issue.
OK Zimbabwe Auctions Supermarkets, Assets in Bold Rescue Move Amid Economic Turmoil
In a bid to avoid collapse, the company’s recapitalisation drive has been underwritten by major institutional shareholders, including the National Social Security Authority (NSSA), Datvest Nominees, and Old Mutual Life Assurance Company. Nkala revealed that proceeds from the rights offer and property sales will be directed toward replenishing inventory, settling overdue accounts with creditors, revamping stores, and implementing new digital and operational technologies.
The rights issue will involve the issuance of approximately 1.83 billion new shares at a subscription price of US$0.0109 each, payable in United States dollars. Existing shareholders will be offered 1.37 new shares for every share they currently hold, based on the shareholder register as of July 21, 2025.
The company has also taken steps to stabilise leadership during the transition period. A restructured board has been appointed, and former executives have been brought back on an interim basis to guide the business through the crisis while a new executive team is recruited to lead the long-term recovery.
A circular distributed to shareholders ahead of the EGM outlined the broader goals of the turnaround strategy, which include restoring trust within the supply chain, increasing operational efficiency, enhancing store formats, and ultimately protecting shareholder value from further deterioration.
Industry watchers view the developments at OK Zimbabwe as a microcosm of the broader economic chaos engulfing the nation. Retailers across Zimbabwe are either closing branches, reducing staff, or downscaling their operations entirely as inflationary pressures, exchange rate distortions, and policy instability wreak havoc.
Despite government assurances and repeated blame placed on sanctions and unnamed “economic saboteurs,” ordinary Zimbabweans and private businesses continue to bear the brunt of Zimbabwe’s economic collapse.
With over seven decades of history, OK Zimbabwe has long been regarded as a household name in the country’s retail space. The company operates a wide network of supermarkets under brands such as OK Stores, Bon Marché, and OKmart. However, survival now hinges on the success of this high-stakes rescue mission.
Whether this bold plan can deliver OK Zimbabwe from the brink remains to be seen, but for now, the company is betting everything on drastic restructuring to navigate one of the harshest economic climates in its history.
-
-
-
-
-
-
-
-
-
-
