South African packaging giant Nampak Limited has renewed efforts to sell its Zimbabwean subsidiary, Nampak Zimbabwe Limited, as part of a broader strategy to cut debt, simplify its funding structure, and strengthen its balance sheet.
The move follows the collapse of a US$25 million sale earlier this year.
The company had initially entered a non-binding agreement on 30 September 2024 to sell its 51.43% stake in NZL to TSL Limited for US$25 million. A formal sale contract was concluded on 25 March 2025, and despite a smooth due diligence process and regulatory clearance, the deal fell through after TSL shareholders failed to provide the necessary approval.
Nampak’s 2025 financial results show the company has resumed the search for a buyer, with proceeds from the sale earmarked for debt reduction.
“Efforts to dispose of the Nampak Zimbabwe business continue, and net proceeds will be applied to further reducing the group’s net debt,” the company said.
The group has also streamlined its funding, reducing the number of lenders and implementing more manageable covenants. All outstanding debt is now long-term, bolstering Nampak’s financial position.
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This disposal push forms part of a turnaround strategy launched in 2023 to stabilise the business after years of financial strain. Since then, Nampak’s net debt (excluding capitalised lease liabilities) has dropped from ZAR5.2 billion (US$306.48 million) in September 2022 to ZAR2.1 billion (US$123.71 million) in September 2025, thanks to equity raising and aggressive asset sales.
Key disposals over the period include Nampak Bevcan Nigeria Ltd, Inspection and Coding Systems (I&CS), Nampak Kenya Ltd operating assets, and Tubes, a division of Nampak Products (Pvt) Ltd. In the 2025 financial year alone, asset sales generated ZAR1.5 billion (US$88.41 million).
Despite the failed TSL transaction, NZL remains classified as “held for sale” in Nampak’s accounts. The company says the failure was solely due to TSL shareholder approval not being secured. Management remains committed to selling the unit and continues actively seeking a buyer.
Nampak’s decision to exit Zimbabwe reflects ongoing concerns among foreign investors over the country’s business environment, including currency volatility, rising taxes and regulatory fees, inconsistent policies, bureaucratic hurdles, and challenges repatriating funds.
“The intended disposal will reduce the group’s net debt and exposure to the risks and volatility of the Zimbabwean economy,” the company said.
Nampak said that sustained profitability, tight working capital management, disciplined capital expenditure, and proceeds from the NZL sale should support its goal of regaining an investment-grade credit profile, lowering funding costs, and boosting investor confidence.
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