Bureaucracy, high operational cost behind OK Zimba...

Bureaucracy, high operational cost behind OK Zimbabwe closures

Oscar J Jeke

Zim Now Reporter

OK Zimbabwe, the country’s largest supermarket chain, has been forced to shut down several of its stores due to crippling operational costs, bureaucratic hurdles, and an increasingly harsh economic environment, the company’s secretary, Margaret Munyuru, told Parliament.

Speaking before a parliamentary committee, Munyuru cited unsustainable electricity costs, excessive licensing requirements, and poor service delivery as key factors driving the closures. “Power remains unsustainably costly to the extent that we are running supermarkets primarily on generator power due to the unavailability of electricity in various localities. Even when power is available, the cost is unreasonably high,” she said.

Zimbabwe has been experiencing severe power shortages, with outages lasting up to 20 hours a day. This has forced businesses like OK Zimbabwe to rely on diesel-powered generators, significantly increasing operational expenses. Additionally, the company has had to privately arrange for waste management services, despite paying high municipal rates. “Service provision is almost unavailable to the extent that we need private arrangements for waste management across our multiple supermarkets nationwide,” Munyuru explained.

The complex web of licenses and bureaucratic red tape has also added to the company’s challenges. Munyuru urged authorities to streamline the process by introducing a "one-stop shop" for retail licenses, similar to the Zimbabwe Investment and Development Agency model. “We would appreciate consideration of a one-stop shop that allows us to take care of our multiple retail licenses,” she said.

The closure of OK Zimbabwe supermarkets has already had devastating effects on local farmers, who relied on the retailer as a major buyer of fresh produce. Munyuru pointed to the closure of the Entumbane branch as an example of how supermarket shutdowns are disrupting supply chains and impacting small businesses.

Writing on his X handle, Oliver Mtyambizi warned that OK Zimbabwe’s struggles are reflective of the broader challenges facing businesses in Zimbabwe. “What she said is affecting almost every other business, and I will not be surprised if more companies shut down. The environment is simply not conducive for business. Businesses are being levied numerous fees on top of exorbitant operational costs,” he said.