Zim GBC News | Business Correspondent
OK Zimbabwe Limited has plunged into a severe financial crisis, reporting a staggering US$25 million loss as the retail giant battles a 52 percent revenue collapse, liquidity challenges, and critical supply chain disruptions that have crippled operations across its stores.
According to the company’s audited financial results for the year ending March 31, 2025, group revenue fell dramatically to US$245 million, with Chairman Herbert Nkala describing the downturn as a “perfect storm” of economic challenges.
“The decline is attributed to supply chain disruption, an unstable exchange rate—especially in the second half of the year—liquidity crunch in the economy, and heightened competition from the informal sector, compounded by exchange rate controls that distorted pricing,” Nkala stated.
The chairman revealed that the group’s failure to maintain timely payments to suppliers triggered a critical breakdown in its supply chain, leading to empty shelves and operational disruptions across its retail outlets.
“The Group failed to settle suppliers’ accounts on time, leading to some withholding deliveries while others demanded payment upfront,” Nkala confirmed, noting that the liquidity crunch directly affected the company’s ability to stock essential goods.
Despite the grim financial performance, which was weighed down by an average inflation rate of 15.21 percent, the retail giant has launched a restructuring drive to stabilize operations and ensure long-term survival.
Nkala offered cautious optimism about recovery efforts while tempering expectations for a quick turnaround.
“It will take some time to return to normal operations,” he acknowledged, warning shareholders and customers that the road to recovery would be “long and difficult.”
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