Online Reporter
Oliver Kazunga
Senior Business Reporter
Zimbabwe boasts local investors eager to acquire assets from foreign entities exiting the country and have been filling the void left by some departing companies, a Cabinet minister has said.
Responding to questions from journalists during a virtual meeting on the World Economic Forum (WEF) update, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said while Government cannot prevent companies from dis-investing, it was encouraged by the readiness of local investors to acquire assets from those that are exiting the market.
Foreign-owned entities, including retail chain Choppies Zimbabwe and global accounting firms, Deloitte and PwC and Unilever are some of the companies that have existed in the Zimbabwean market, citing operational challenges.
Deloitte, one of the world’s big four audit firms, left Zimbabwe in June last year.
Its local unit, Deloitte Zimbabwe, has since rebranded and is now known as Axcentium after a management buyout.
Following PricewaterhouseCoopers’ exit from Zimbabwe on January 17, 2025, its local partners have transitioned operations to a newly established local firm, Vista Chartered Accountants.
Meanwhile, local retail supermarket Sai Mart, owned by legislator and Deputy Minister of Industry and Commerce Raji Modi, has assumed control of Choppies Zimbabwe, effective earlier this month.
Choppies said the decision to disinvest in the domestic market was part of its broader strategy to ensure sustainable growth and profitability across its operation.
“Of course, you cannot stop companies dis-investing, but I am pleased that for some of these dis-investments, we do have ready local investors who are ready to take over those companies,” said Minister Ncube.
“You saw it with the audit firm (PwC) that it exited; local partners took over the practice and they continue to be practicing and we are very pleased with that.
“And then if you also look at a company like Choppies, a local investor again is taking over their assets and continuing operating the company.
“So, it looks like we are not short of local investors who are ready to step in.”
Crucially, the disinvestments of foreign entities have coincided with the entry of new foreign companies into the local market.
For instance, global accounting and advisory giant Forvis Mazars officially launched its Zimbabwean operations in June last year, signalling confidence in the country’s economic prospects.
Forvis Mazars said the decision to enter the Zimbabwean market was a testament to the country’s economic potential.
Two leading global professional services firms, Mazars, an international partnership operating in over 100 countries and territories, and Forvis, a top ranked firm in the United States’ amalgamation gave birth to a new US$5 billion global network, Forvis Mazars.
Forvis Mazars, a top 10 global network, is the largest new entrant into the global rankings in decades.
Minister Ncube said the Government was committed to improve the business environment in Zimbabwe emphasising ongoing efforts to address business challenges, attract new investments, and encourage the expansion of existing businesses within the country were aimed at enhancing the ease of doing business.
“We’ll always continue to make sure we deal with the challenges that businesses generally face to improve the environment for doing business.
“We will continue to work on that to attract new investment as well as encourage expansion by those who are already on the ground,” said Prof Ncube.
Addressing the challenges faced by the country’s formal retail sector, Minister Ncube acknowledged the difficulties and said the ongoing crackdown on smuggling was partly aimed at addressing the challenges.
He said as part of efforts to bolster the viability of the formal retail sector, the Government had initiated a door-to-door crackdown to confiscate contraband goods entering the country and being sold within the informal retail industry.
Over the past two years, Zimbabwe has witnessed a significant migration of shoppers to the informal retail sector, leading to a decline in foot traffic at formal retail outlets by as much as 30 percent.
“The issue of retailers who are struggling and that’s the reason why we have launched the blitz on smuggling — one of the things the retailers have told us about is that smuggling is hurting their businesses.
“Manufacturers are also feeling that this is hurting their businesses. So, we have had this blitz on smuggling to make sure that we slow down this illicit behaviour.
“We are very happy to look into key areas or issues that are impacting the sector negatively and I will engage them to make sure we can unlock those challenges,” said Prof Ncube.
The operation is also targeting wholesalers, supermarkets and tech shops, with smuggled goods including a variety of food stuffs, clothing, drugs, beverages, fertilisers, cement, vehicles, electrical gadgets and solar panels.
