HARARE, Feb 17 (NewsDay Live) - Troubled retailer, OK Zimbabwe (OK) says it has begun restocking shops following weeks of empty shelves that have led to the closure of several outlets as it grappled with macroeconomic challenges, chief among the exchange rate volatility.
Last week, OK was among several retailers that made presentations to the Parliamentary Portfolio of Industry and Commerce that they were closing outlets because of high taxation, exchange rate volatility, power cuts, and growing informalization of the economy.
“The business has begun restocking the operating units with support from supplier partners as well as financial institutions that continue to assist with short-term funding structures,” OK said, in a trading update on Monday.
“New alternative procurement models have been developed, which include, but are not limited to, a structured stock supply arrangement with a third party for supplier assurance purposes as the business works to restore critical supply relationships with both local and foreign suppliers.”
OK said it was confident of restoring normal stocking levels before the closure of the current financial year.
“The fortunes of the country’s formal retail sector are hinged on the stability of our exchange rate regime,” OK said.
“Consultations with both fiscal and monetary authorities have led to a relaxation of the very strict policing of applicable in-store exchange rates.”
The group welcomed the recently announced 2025 Monetary Policy Statement measures which removed several limitations and introduced some level of flexibility within the foreign exchange market.
- Tribunal to settle sugar milling dispute
- Manufacturers get US$300m lifeline
- Real estate key enabler of economic activity: Nzenza
- Interview: Nzenza: Buckle up for AfCFTA or collapse
Keep Reading
“However, there is a need for absolute clarity on the roadmap towards a fully market-determined exchange rate system,” OK said.
“Such a liberalised system will go a long way in restoring the competitiveness of the formal retail sector.”
