Shoprite, Choppies exits foreshadow turmoil as OK Zimbabwe enters corporate rescue

OK Zimbabwe Limited, Zimbabwe’s largest listed supermarket chain, has entered voluntary corporate rescue after sustained liquidity pressure left the supermarket group unable to meet its financial obligations, deepening concerns over Zimbabwe’s fragile retail sector.

The February 23, 2026, board resolution follows a $20 million rights offer approved in July 2025 that failed to restore working capital stability. While the capital raise strengthened equity and enabled partial debt repayments, tightening supplier credit in late 2025 disrupted inventory flows and accelerated revenue decline.

Supplier crunch triggers collapse
Bulisa Phillimon Mbano of Grant Thornton has been appointed Corporate Rescue Practitioner under Section 122 of the Insolvency Act. The process imposes a temporary moratorium on creditor action while a restructuring plan is developed.

Chairman Charles Msipa said supplier confidence deteriorated sharply in the second half of 2025. Credit terms were reduced to as little as one week, with some suppliers suspending deliveries entirely. Inventory shortages followed, forcing operational slowdowns across stores.

Currency instability weighs on retailers
The crisis underscores structural pressures in Zimbabwe’s retail economy, including volatility linked to the Zimbabwe Gold (ZiG), persistent inflation and tightening trade credit conditions. Reduced consumer purchasing power further compounded revenue pressures.

Choppies and Shoprite exits echo warning signs
Regional peers had previously withdrawn. Botswana-based Choppies Enterprises exited Zimbabwe in 2024, citing currency volatility and declining traffic. South Africa’s Shoprite Holdings divested in 2013 as part of a broader African retrenchment strategy.

Unlike its regional counterparts, OK Zimbabwe has opted for restructuring rather than exit, citing tangible assets, brand recognition and an established workforce as pillars for recovery.

For Zimbabwe’s retail sector, the episode reinforces a critical lesson: in volatile macroeconomic environments, liquidity strength and supplier confidence often outweigh scale and brand legacy.