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Business Reporter

OK Zimbabwe’s newly reinstated chief executive, Mr Willard Zireva, has unveiled a comprehensive turnaround strategy for the retail giant, describing the company’s recent state as a “painful” sight.

Speaking exclusively on CapitalkFM’s Business Focus Show, Mr Zireva detailed plans to restore financial stability, mend supplier relations and rebuild consumer trust.

Mr Zireva, who returned from retirement to lead the company, told listeners that when he came back he found a business weighed down by debt, with “strained supplier relations, empty or almost empty shelves in most branches, and, naturally, lost consumer support.”

He called the situation painful to witness but expressed a belief that it presented an opportunity for renewal.

“It was painful to see, because OK Zimbabwe has always been a trusted household name.

“But I didn’t see defeat — I saw an opportunity for renewal. I must emphasise that the turnaround is a process, not a one-day event. But I am encouraged by the positive way everyone — our customers, suppliers and staff — is walking with OK Zimbabwe on this journey,” said Mr Zireva.

To address the immediate financial challenges, the company has raised US$20 million through a rights issue and is expecting an additional US$10,5 million from the sale of immovable assets.

This fresh capital has enabled OK Zimbabwe to partially settle its debts and strengthen its working capital, he said.

According to Mr Zireva, the company has also reopened dialogue with suppliers and is renegotiating terms to ensure a steady flow of products.

Mr Zireva outlined a clear roadmap for the company’s revival, focusing on three key pillars. The first is financial stability, which involves completing debt repayments, safeguarding working capital and securing steady stock.

The second pillar is operational excellence, which entails streamlining costs, refurbishing key stores and retraining staff to deliver world-class service. The third pillar is transparency and governance, which includes reconstituting the board, implementing tighter controls and committing to regular, open updates for investors and the market.

Acknowledging the brand’s deep connection with Zimbabweans, Mr Zireva said the company has launched a new theme, “OK, Moving Forward, Stronger with You,” to reconnect with customers.

He stated that the company is reintroducing community-driven promotions and investing in customer engagement through both in-store activities and digital platforms.

Mr Zireva concluded with a resolute message to all stakeholders: “We are back, and we are here to stay.”

He thanked suppliers for their patience and staff for their dedication, emphasising that the turnaround is a process that the company is happy to be walking side by side with all stakeholders.

“But let me stress again — this is a process. We are building systematically, and while there will be challenges along the way, the direction is positive and encouraging. Every day, we see signs that OK Zimbabwe is regaining strength,” said Mr Zireva.

The start of Donald Trump’s second presidency has matched his first term in proving a boon for emerging-market stocks, but the rally risks running out of steam given his trade and fiscal policies are also sinking corporate earnings.

The benchmark MSCI Emerging Markets Index has posted an advance every month from January through August this year, the first of Trump’s second term. That’s happened only twice before in the 37 years that investors have tracked emerging markets as an asset class: in 2017, also a Trump inaugural year, and in 1993, under Bill Clinton.

But the Trump bump hides a fact that should worry investors in emerging-markets stocks, who’ve seen their wealth increase by $4.3 trillion so far this year: companies in developing nations are hurting. They’ve failed to meet expectations for profits in 2025, and, on average, are trailing projections for a 13th successive quarter. Earnings projections have also begun to fall, indicating the pain is set to deepen.

The contrasting trends in stock-market performance and corporate earnings are both driven by Trump’s policies. His disruptive tariffs and fiscal expansionism have reduced the US dollar’s haven appeal, driving a hunt for alternative assets.

At the same time, technology restrictions and trade barriers have eroded revenue and profit growth in developing countries from South Korea to Brazil.

“We stay cautious on emerging-market equities in a global context, as tariff-related risks continue to weigh more heavily on sentiment in EM,” said Nenad Dinic, an equity strategist at Bank Julius Baer. “Earnings-per-share estimates for 2025 flipped back to a downward trend after the 90-day tariff pause, reflecting concerns about tariff pressures building into the second half of the year.”

This year started with most emerging-market money managers bracing for a stronger dollar as they expected Trump’s tariffs to delay US monetary easing and drive more bids for the greenback. That translated into a weak outlook for developing-nation stocks, which typically do poorly when the dollar strengthens. —  Bloomberg

Business Reporter

Econet Wireless Zimbabwe is spearheading a digital revolution, laying the groundwork for a more connected and efficient future, according to deputy chief executive officer Mr Roy Chimanikire.

Speaking at the Econet stand at the ongoing Zimbabwe Agricultural Show (ZAS), Mr Chimanikire, shed some light into the company’s ambitious vision for a technology-driven economic transformation.

At the heart of that technology-driven push is the company’s rapid 5G network expansion.

Mr Chimanikire announced that the company has already deployed some 300 5G base stations as of July 2025, bringing high-speed 5G connectivity to over 500 000 customers. This is over and above the rest of its millions of customers that use 4G (LTE) mobile data and the few that still use 3G.

He said while the 5G technology usage is still growing, Econet’s rapid rollout marks a powerful stride towards harnessing the full potential of Zimbabwe’s digital transformation as the country moves towards a full digital economy.

He noted that 5G’s true potential lies beyond basic applications on smartphones, pointing instead to its transformative impact on businesses and industry, through the “Internet of Things” (IoT) – the collective network of connected devices and the technology, such as 5G, that facilitates communication between devices and the cloud, as well as between the devices themselves.

“It’s about the next level of technology in terms of the efficiency it can bring to businesses and the scalability at which businesses can do things and speedily deliver products and services now,” Mr Chimanikire explained.

He showcased several applications at the Econet stand – which is a key attraction at the entire show – including a smart water solution designed to manage water grids more efficiently, using intelligent data from connected devices. He also highlighted the use of drone technology for applications like smart parking and agriculture, noting the significant reduction in labour costs and time for tasks such as crop spraying.

Econet is also actively infusing AI in its business processes and to address customer pain points and improve service delivery.

The company has introduced a chatbot named Yamurai, which fluently communicates in local languages, including Shona and Ndebele.

“What it’s really doing is it is allowing customers themselves to (quickly) resolve some of their pressing pain points,” Mr Chimanikire said.

He added that the chatbot can also assist with tasks such as obtaining a PUK number or configuring a SIM card, all without the need for human interaction with an agent. The AI-powered chatbot supports interactive voice, allowing users to speak to it as if they were speaking to a real human being.

Mr Chimanikire said artificial intelligence presents a significant opportunity for companies to have a positive societal impact, aligning with global development goals.

He said Econet was actively exploring more ways to use these technologies to provide services that are convenient, relevant and have a transformative impact on people’s lives.

Nelson Gahadza

Zimpapers Business Hub

FBC Holdings says liquidity within the banking sector has remained constrained with deposits being largely transitory.

Consequently, the banking group has shifted its focus to funding diversification through lines of credit and new customer segments.

FBC Holdings is a financial services holding company listed on the Zimbabwe Stock Exchange (ZSE), offering a diverse range of services. These include commercial banking, mortgage financing, short-term and reinsurance, securities trading and microfinancing through its various subsidiaries.

In a statement of financials for the half-year ending 30 June 2025, group chairman, Mr Herbert Nkala, said that the company is engaging external financiers for lines of credit.

“Negotiations are at various stages to conclude several credit lines worth more than US$50 million and these are expected to be finalised before the end of the year. This will enhance our ability to support our customers’ funding requirements and grow our revenues,” he said.

Mr Nkala said the group’s banking subsidiaries remain profitable and well-capitalised, with key performance indicators aligning with industry benchmarks.

He added that the business model is, however, undergoing a transformation to remain competitive and the focus has been on increasing investment in technological infrastructure and solutions. The aim is to improve customer experience and convenience and to widen product offerings.

“These interventions are also complementary to the national agenda on financial inclusion through the provision of improved access to financial services at an affordable cost,” he said.

Mr Nkala also said several system enhancements and upgrades are underway, particularly for front-end systems such as mobile banking and internet banking platforms, to improve the customer experience.

“The group has gone further to embrace Artificial Intelligence (AI), focusing on improved processes, product development and enhancements. These initiatives should result in improved efficiency, robust processes, and superior customer service,” he said.

During the period under review, Mr Nkala said the group’s insurance subsidiaries are fully compliant with the new minimum capital requirements and are trading profitably.

He noted that the group’s focus locally is to align with local economic sector growth prospects and enhance its underwriting capacity to offer relevant products that target these economic sectors.

He also highlighted that FBC Re Botswana, on the other hand, continues to register growth in regional markets.

“On the regulatory front, the Government, through the Insurance and Pension Commission (IPEC), issued a new regulatory framework, Statutory Instrument (SI) 67 of 2025, setting the new minimum capital requirements for players in the insurance sector in June 2025. This is meant to promote a stable insurance industry, which, if achieved, will improve confidence and growth,” said Mr Nkala.

In terms of financial performance, group operating income was ZiG1,85 billion, a decline from the ZiG4,06 billion recorded in the corresponding period of 2024. Consequently, profit after tax amounted to ZiG915,7 million, representing a 22 percent decrease from the prior period’s ZiG1,18 billion.

“The outcome underscores a deliberate strategic realignment of the group’s business model in response to the new, stable macroeconomic environment. The composition of the group’s income has shifted markedly towards core business activities, with reduced reliance on gains arising from hedging assets,” said Mr Nkala.

He concluded that the group will continue exploring opportunities to diversify its business portfolio, both locally and regionally.