OK Zimbabwe Cries Foul, Pleads With Harare City Council to Evict Informal Competitors
Zimbabwe Stock Exchange listed retail giant OK Zimbabwe has approached the City of Harare seeking support as the company battles mounting operational and financial pressures that have severely affected its performance, including the issue of illegal traders operating directly in front of their outlets.
Harare Mayor Jacob Mafume confirmed that he met with OK Zimbabwe Chief Executive Officer Vimbai Willard Zireva and the Permanent Secretary in the Ministry of Industry and Trade, Thomas Utete Wushe, to explore measures the municipality could take to aid the retailer’s recovery.
Mafume said the company raised concerns over informal traders operating outside its outlets, a situation that has contributed to declining sales as customers opt for cheaper informal alternatives.
“We committed to addressing the issue of people trading in front of their stores. We will also continue to look at ways of further reducing licence fees,” Mafume said following the meeting.
He added that the city would craft a sustainable payment plan to help the retailer settle outstanding rates owed to the council. OK Zimbabwe operates 31 stores across Harare, and the mayor expressed hope that the number would grow rather than shrink amid ongoing restructuring.
The company has been struggling to regain stability following a significant drop in revenue and persistent liquidity challenges.
OK Zimbabwe reported a 53% decline in revenue to US$240 million in 2025, attributing the downturn to supply chain disruptions, currency volatility and stiff competition from informal traders who offer favourable USD cash terms to suppliers.
In recent weeks, the retailer has also faced pressure to dispose of several properties to service loans and inject liquidity into the business.
Although shareholders raised US$20 million through a rights offer earlier this year, progress on raising the remaining US$10.5 million through property sales has been slower than anticipated.
By August 2025, only US$7.3 million worth of offers were under review, with some buyers proposing leaseback deals.
The properties earmarked for disposal include OK Mbuya Nehanda, OK Glen View, the Birmingham Warehouse, OK Gweru, OK Malvern, Stand 6464 in Ordar Township, Stand 39 in Odar Township (Harare), Stand 19676 in the Harare Township of Borrowdale, and a stand in Mutoko.
OK Zimbabwe links its decline to widespread supply-chain interruptions, fluctuations in the exchange rate, and mounting pressure from informal traders who attract suppliers by offering the advantage of US-dollar cash payments. *nehandaradio*
