In a move that has sparked debate across the country’s business community, OK Zimbabwe has dismissed its current leadership and reinstated former top executives Willard Zireva and Alex Siyavora to lead a “comprehensive restructuring exercise.”
The shake-up comes as the retailer recently closed four of its stores, is battling empty shelves emanating from Zimbabwe’s economic tornado: hyperinflation, currency chaos, and a consumer base in survival mode.
The big question is this recent move a strategic masterstroke or a desperate gamble?
Let us dissect the decision through a global and local lens.
The Apple Playbook… or a Sears-Style Trap?
When Steve Jobs returned to Apple in 1997, he did not just steady the ship — he reinvented it. He killed failing products, bet on innovation (iPod, iPhone), and transformed Apple into a trillion-dollar empire. OK Zimbabwe’s shareholders are now borrowing from the same playbook: bringing back Zireva, who led the company from 2009–2017, and Siyavora (2017–2021), eras marked by relative stability.
Nevertheless, here is the harsh truth: Zimbabwe in 2024 is not Silicon Valley in 1997.
Apple had room to innovate; OK is fighting for basic survival. Shelves are bare, forex is scarce, and the ZiG currency remains mistrusted.
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Jobs slashed costs but invested in the future; OK’s store closures and leadership revival scream austerity, not vision.
The darker parallel? Sears. The once-dominant US retailer cycled through legacy CEOs for decades, prioritising cost cuts over adapting to e-commerce. Today, Sears is a relic. Will OK follow the same path if it focuses only on nostalgia?
Why this move feels like déjà vu
Zimbabwe’s economy is trapped in a cycle of crisis and short-term fixes. OK’s leadership revival mirrors the government’s own reliance on familiar faces to navigate turbulence. However, in retail, the stakes are existential:
- Stock shortages: Informal traders and foreign chains like TM Pick n Pay are eating OK’s lunch.
- Currency chaos: The ZiG has yet to gain trust, and US dollar liquidity is tighter than ever. Unlike Shoprite, which hedges forex risks across Sadc, OK lacks regional buffers.
- Consumer trust: Empty shelves and abrupt closures erode loyalty. Will Zireva’s return matter if customers cannot buy sugar or soap?
The deeper crisis: A retail sector on life support
OK’s struggles reflect Zimbabwe’s broader economic decay:
-Hyperinflation: At over 1,000%, prices outpace wages, forcing households to prioritise basics like mealie-meal over retail goods.
-Dollarisation dilemma: The US dollar is king, but banks ration it. Informal traders thrive with cash-only, US dollar-stocked tuck shops; bureaucracy strangles formal retailers like OK.
-Leadership myopia: Zimbabwe’s business elite often recycle leaders instead of reinventing systems. Zireva and Siyavora are capable, but can they fix what is fundamentally broken?
The path forward: Innovation or obsolescence
To survive, OKZ must choose:
- Franchise tuckshops: OK Zimbabwe could combat economic crises by franchising informal tuckshops — transforming competitors into partners. Mimicking Shoprite’s Usave model, this strategy leverages existing tuckshop networks to expand reach, cut costs, and stabilise prices via bulk sourcing. Franchisees gain access to OK’s supply chain and hybrid US dollar/ZiG currency options, countering inflation and competition. This high-risk pivot offers survival through informal-sector collaboration amid drought and currency chaos.
- Digital pivot: Launch a WhatsApp-based ordering system (see Kenya’s Naivas Supermarkets) to compete with agile informal traders.
- Currency agility: Adopt a dual pricing model (ZiG/US dollar) and lobby for forex access, as TM Pick n Pay has done.
The bottom line: A test case for Zimbabwe
OK Zimbabwe’s gamble is more than a corporate drama — it is a litmus test for Zimbabwe’s ability to reconcile its past with a precarious future. The retailer’s fate hinges on one question: Can it reinvent itself in an economy that refuses to reform?
If Zireva and Siyavora merely rehash old strategies, OK will become another casualty of Zimbabwe’s stagnation. But if they channel Steve Jobs — combining nostalgia with ruthless innovation — they might just rewrite the playbook.
Thought-provoking question: Is Zimbabwe’s business sector doomed to repeat history, or can it carve a new path?
*This article was coordinated by Fungayi Sox–an emerging Harare-based business consultant and communications strategist.
*Mark Mtombeni is an experienced auditor and financial consultant with expertise in financial Statements auditing, accounting and tax management, with passion for helping businesses achieve financial clarity and growth, he offers strategic insights and actionable insights and actionable solutions to optimise financial operations. Committed to excellence, Mtombeni uses his skills and experience to drive success for clients across various industries. He can be reached on thefinanceguy22@gmail.com or on +263 719 412 008
