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OK Zimbabwe Limited, one of the country’s flagship retail chains, is closing in on a critical US$30 million capital injection as it navigates a turbulent operating environment and mounting financial strain.
The company, grappling with a combination of supplier debts, economic instability, and shrinking market share, confirmed that discussions around the capital raise are at an advanced stage. The funding, which comes in the form of a rights issue, private placement, and debt instruments, is aimed at stabilising the company’s finances and preserving its position in Zimbabwe’s increasingly hostile formal retail space.
“Further to the cautionary announcement dated 2 May 2025, Directors of OK Zimbabwe Limited wish to advise shareholders and the investing public that discussions regarding the proposed capital raise in the sum of up to US$30 million are now at an advanced stage and are nearing finalisation,” company secretary Margaret Munyuru said in a statement issued on June 4.
“Further details will be announced in due course. The Company will then publish a circular to shareholders incorporating notice of an Extraordinary General Meeting of Members for the purpose of considering and approving the capital raise.”
OK Zimbabwe is currently saddled with supplier debts amounting to US$30.34 million, as per documents from February. A significant portion of this figure is tied up in overdue creditor balances, underscoring the urgency of the capital raise.
The company’s financial woes mirror a broader crisis in Zimbabwe’s formal retail sector, which is battling the dual pressures of a volatile exchange rate and rampant inflation. Traditional retailers are also losing ground to a burgeoning informal sector that operates with fewer regulatory burdens and greater pricing flexibility.
Food Lovers Market, another well-known retail brand, is reportedly shuttering two major branches in Avondale and Borrowdale, highlighting the extent of the sector’s decline.
“Accordingly, shareholders and the investing public are advised to continue exercising caution when dealing in the Company’s shares. Further announcements will be made in accordance with regulatory requirements as and when there are material developments,” Munyuru added.
As Zimbabwe’s economic landscape continues to shift, the outcome of OK Zimbabwe’s capital raise could serve as a bellwether for the future of formal retail in the country.
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