Zimbabwe’s largest supermarket group, OK Zimbabwe limited which operates 70 outlets nationwide, says it has been forced to shut down several of its stores due to a combination of unsustainable operational costs and an increasingly difficult business environment.
Margaret Munyuru, the company secretary, explained before Parliament this week that the supermarket group is struggling with soaring expenses driven by ongoing power shortages, skyrocketing property rental costs, and burdensome licensing requirements. With power cuts lasting up to 20 hours a day, the chain has been relying heavily on diesel generators to keep stores running, a costly measure that has added significant strain to their operations.
“Running our supermarkets on generator power due to unreliable electricity has become an unsustainable expense,” Munyuru said. “When power does come, it is often unreliable and insufficient.”
In addition to the energy challenges, Munyuru highlighted the steep rise in property rental rates, which have made it financially challenging to maintain stores in certain locations. The supermarket group has also been grappling with bureaucratic hurdles, particularly in acquiring multiple retail licenses, and called for a streamlined approach to reduce the operational burden on businesses.
She gave the closure of the Entumbane branch as an example, where the cost of doing business had become so high that it no longer justified remaining in the community. The store, which had served as a crucial outlet for local farmers to sell their produce, has sparked complaints from the community, who urged the supermarket chain to reconsider the decision.
“We’ve been in operation for over 35 years in Entumbane, and while the community relies on us, the economics of staying open are no longer sustainable,” Munyuru explained.
The company secretary also pointed to the lack of adequate municipal services, such as waste management, which are traditionally provided by local authorities but are increasingly being handled privately due to service shortages. Despite paying high local taxes, businesses are receiving insufficient support from local government services.
