By Elvis Dumba
Harare – OK Zimbabwe Limited, one of the country’s largest retail chains, has issued a cautionary statement to shareholders and the investing public, highlighting significant operational and financial challenges.
The retailer, which operates a network of supermarkets and department stores, has been navigating a difficult economic environment.
This has led to job losses and the closure of some branches. Key challenges include macroeconomic volatility, inflationary pressures, liquidity constraints, and working capital shortages.
As a result, OK Zimbabwe has struggled to meet its financial obligations, including payments to suppliers and financial institutions. Supply chain disruptions have further led to reduced stock availability, negatively impacting revenue generation.
The company anticipates posting a significant loss for the financial year ending March 31, 2025. In response, its board of directors has approved a capital-raising initiative of up to US$30 million to stabilize operations and restore financial health.
The capital raise—comprising a combination of a rights issue, private placement, and debt instruments—aims to strengthen the company’s balance sheet, improve liquidity, and enhance working capital availability to support its strategic turnaround plan.
Shareholders and investors have been advised to exercise caution when dealing in the company’s shares.
OK Zimbabwe’s financial struggles mirror the broader economic difficulties facing the country, including persistent inflation, liquidity shortages, and macroeconomic instability.
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