Itai Ndongwe
HARARE (FinX)— CBZ Holdings and BancABC have extended financial guarantees to OK Zimbabwe Limited, unlocking credit lines that have kick-started a nationwide restocking drive at the retail chain. Ecobank is now in advanced talks to join the support package, a move that would bring a third bank into the rescue effort.
The guarantees from the two local banks have restored supplier confidence and cleared the way for major manufacturers to resume deliveries. The rescue package includes US$20 million in bank guarantees structured to restock empty shelves nationwide. Two of the three facilities have already been approved, with Ecobank’s still being finalised; once it joins, three banks will be backing the retailer’s recovery drive.
Key suppliers — including Dairibord, ZimGold, Olivine, National Foods and Nestlé — have restarted shipments and are reclaiming shelf space in OK stores as a result.
To protect these returning suppliers, OK Zimbabwe is channelling sales revenue directly into a ring-fenced collection account. The model was piloted successfully with Delta Beverages, facilitating the return of key product lines to shelves without exposing suppliers to the retailer’s historic debt.
The urgency behind the intervention is considerable. Suppliers such as Distribution Group Africa, an Axia subsidiary, have already recorded substantial balance sheet impairments because of OK’s defaults, and the retailer is currently carrying approximately US$50 million in debt. Even so, initial creditor sentiment favours supporting a restructuring over a hard wind-down.
That recovery is underpinned by agreements with major trade creditors to defer legacy debts, giving OK Zimbabwe room to trade and stabilise operations. The company still requires an additional US$5.2 million in fresh working capital to steady day-to-day operations.
Alongside the restocking push, OK Zimbabwe has begun reopening outlets that were shuttered during its liquidity crunch, part of a broader effort to drive customer traffic and rebuild the chain’s national footprint ahead of the festive season.
