OK Zimbabwe executives fired after Guvamatanga’s scathing criticism

HARARE – Zimbabwe’s biggest retail supermarket, OK Zimbabwe Limited, has announced a significant overhaul of its leadership, with the departure of key executives and the return of former company officials.

This shake-up comes after a period of substantial operational challenges and public criticism from the Ministry of Finance.

The Zimbabwe Stock Exchange company released a statement confirming the “conclusion of voluntary separation agreements” with Chief Executive Officer Maxen Karombo, Chief Financial Officer Phillimon Mushosho and Supply Chain Director Knox Mupaya.

In their place, former CEO Willard Vimbai Zireva has been appointed caretaker CEO, and Alex Edgar Siyavora has returned as Chief Financial Officer. Richard Chingaira will assume the role of Supply Chain Director.

“The Board would like to acknowledge the outgoing Executive team for their service through this challenging period, and to welcome back the team reposed with the remit to stabilize and turn the business around over the next six months whilst the Company engages in the process to identify the executive replacements,” Margaret Munyuru, the Company Secretary stated.

These changes follow a turbulent period for OK Zimbabwe, marked by a 36% decline in sales volumes for the third quarter ended December 31, 2024.

The company attributed this downturn to a combination of economic factors, including currency devaluation, liquidity shortages, and power outages. The challenges led to the closure of four branches in Harare and significant stockouts.

The executive changes also come after a public dispute between the Finance Ministry and OK Zimbabwe’s former CEO, Maxen Karombo.

Finance Ministry Permanent Secretary George Guvamatanga publicly criticised Karombo, accusing him of a lack of innovation and suggesting he should be fired.

Guvamatanga argued that formal retailers should be able to compete with the informal sector, citing the resilience of South African retailers in the face of spaza shops.

Guvamatanga’s criticism centred on the idea that formal retailers were failing to adapt to the current economic climate, particularly the rise of the informal sector. He argued that businesses should find innovative ways to compete rather than relying on a stable exchange rate.

“How do you complain about a tuck shop which pays five times more per square meter rent, does not have access to credit, and buys all the goods in cash right, because they do not have any access to credit,” the former banker said.

“Possibly they do not have better systems than what you have. And they do not have access to the cheaper foreign currency, they have to go to the parallel market.

“You then come and say that you’re not able to compete because you have been taken out of business by informal tuck shops. If I was the board, I would fire you because you will be useless management. I would fire you.”

The company’s official statement acknowledged the “operating challenges that have necessitated a comprehensive business review and restructuring aimed at enhancing operational efficiency and driving sustainable growth in a dynamic market.”

The returning executives have been tasked with stabilising and turning around the business within the next six months while the company seeks permanent replacements.

The company has been emphasising the importance of exchange rate stability for the formal retail sector and called for greater clarity on the roadmap towards a fully market-determined exchange rate system.

The dismissal of the executives, following the public dressing down from Guvamatanga, is likely to be seen by many as a clear victory for the Finance Ministry’s stance.