As some multinationals head for the exits in Zimbabwe, Finance minister Mthuli Ncube says the country is not short of locals ready to take over.
The recent departure of businesses such as Unilever and Deloitte shows how multinationals, many of whom are leaving African markets, no longer see Zimbabwe as a viable market.
Government’s failure to fix the long-running currency crisis and its uncertain economic policies have made Zimbabwe unattractive to investors, especially those in the service industry.
But Ncube said while his government will do all it can to keep big foreign investors in Zimbabwe, he is putting his hopes in locals to replace them.
“You cannot stop companies from disinvesting,” Ncube said. “But I’m pleased that for some of these disinvestments, you have local investors who are ready to take over those companies.
“You saw it with the audit firms that exited, local partners took over the practice. I was very pleased with that.”
In 2024, Deloitte exited Zimbabwe, and its operations were taken over by Axcentium, a firm led by former Deloitte partners who cited the need for “flexibility and agility” in Zimbabwe’s evolving market.
PwC also left the market last year, with Vista Chartered Accountants taking its place.
Not everyone shares Ncube’s optimism about the exit of global accounting firms.
“When such a globally recognised institution exits a market, the ramifications are not just symbolic — they are structural.
“It reflects systemic economic and governance issues and sends a loud message to both local and international stakeholders about the country’s operating environment,” said Brighton Musonza, an accountant and business commentator.
Retailer Choppies announced its departure from Zimbabwe in December, citing the impact of Ncube’s exchange rate policies which have decimated formal retail and boosted informal traders.
Choppies sold its business Sai Mart, owned by Industry deputy minister Raj Modi.
Ncube insisted: “If you look at Choppies, a local investor is taking over the asset.
“We are not short of local investors who are ready to step in to replace some of these foreign investors.
“But we’ll make sure we step in to address some of the challenges that businesses face.
“We’ll work on that to attract new investment and encourage expansion by those who are already on the ground.”
Last year, Unilever announced it would exit the country and use local distributors instead to sell its brands in Zimbabwe. This added to a list of other multinationals who have left the country.
Standard Chartered last year sold its business to FBC Holdings for $24 million as it left Zimbabwe and several other markets around the world.
Holcim disposed of its cement plant in Zimbabwe to Fossil in 2022 for $29.7 million.
Nampak is currently in the process of selling its 51% stake in the country’s biggest packaging business to TSL for $25 million.—newZwire