Zimbabwe’s business environment over the past year was defined by sharp contrasts, resilience in some sectors, severe strain in others, and cautious optimism underpinned by improving macroeconomic stability.

While structural challenges such as liquidity constraints, power shortages, high operating costs and subdued consumer demand persisted, several corporates responded with aggressive restructuring, disciplined cost control and strategic investments aimed at long-term sustainability.

Across retail, manufacturing, hospitality and quick service restaurants, company performances painted a complex picture of an economy in transition.

OK Zimbabwe Limited endured one of its most difficult periods in recent history during the half-year ended 30 September 2025. Operating in an environment characterised by acute liquidity shortages, declining consumer spending, frequent power outages and supplier disruptions, the group embarked on a sweeping turnaround strategy to stabilise operations.

Management rationalised the store network, closing non-viable outlets including Food Lovers Market franchises and six additional branches such as OK Mart Kwekwe and OK Mart Mutare. This reduced the footprint to strategically located stores capable of contributing positively to recovery. Cost containment became central, with staffing levels, rentals and processes aligned to depressed trading conditions, while capital expenditure of just US$760 000 was limited to essential store relocations.

Despite these measures, financial performance deteriorated sharply. Revenue collapsed 84 percent to US$28.3 million, driven by an 83 percent fall in sales volumes amid constrained inventory caused by tight supplier terms. The group posted a net loss of US$17.8 million, reversing a prior-year profit, as high fixed costs and finance charges weighed heavily. A US$20 million rights issue provided temporary liquidity relief, though delays in property disposals continued to constrain recovery.

Meikles Limited’s retail arm, TM Supermarkets trading as TM Pick n Pay, also faced mounting pressure. While the chain maintained stock availability and avoided borrowings, profitability deteriorated significantly. Rising operating costs and weak consumer demand eroded margins, resulting in inflation-adjusted losses despite relatively stable volumes. Management acknowledged some early signs of improvement following operational adjustments, but the environment remained unforgiving.

Within Meikles, hospitality operations delivered stronger top-line growth, benefiting from improved occupancy levels and higher room rates. Revenues rose sharply, and profits improved in nominal terms. However, escalating operating costs continued to limit the extent of profitability gains, highlighting the difficulty of translating revenue growth into sustained margins.

The group’s property segment recorded higher rental income but saw profits decline due to increased finance costs and reduced gains from property disposals, underscoring the impact of tighter financial conditions even in asset-backed businesses.

In contrast, Delta Corporation demonstrated robust operational performance during the six months ended 30 September 2025. Supported by a relatively stable economic environment and strong consumer demand, the group achieved broad-based volume growth across lager beer, sorghum beer and non-alcoholic beverages.

Revenue rose 32 percent to US$514 million, while profit before tax nearly doubled to US$104.8 million. Strong cash generation funded capacity expansion projects and strategic investments, including the consolidation of Schweppes Holdings Africa as a subsidiary. While sugar taxes and power disruptions in regional operations presented challenges, Delta’s scale, pricing strategy and marketing activations enabled it to sustain volumes and declare a higher interim dividend, signalling confidence in cash flows.

Simbisa Brands Limited emerged as another example of operational resilience. Operating across Zimbabwe and regional markets, the group maintained a disciplined, cash-based operating model that supported liquidity management and reduced credit risk.

Delivery operations were expanded and modernised, with a decisive shift towards electric motorbikes to reduce fuel costs and emissions. Although maintenance costs increased as the fleet grew, delivery became a scalable and sustainable growth channel.

Supply chain constraints required diversification of suppliers, including smaller players, while inventory levels were tightly controlled. Despite persistent power outages increasing generator usage and maintenance costs, Simbisa sustained strong cash generation, with operating cash flows rising to US$51.3 million and profit before tax improving to US$23.4 million. Robust governance, food safety compliance and staff training underpinned operational consistency.

Against this uneven corporate backdrop, broader macroeconomic signals showed signs of stabilisation. The Confederation of Zimbabwe Industries (CZI) reported a notable rise in business confidence, particularly in the domestic currency and overall macroeconomic stability.

Annual inflation fell sharply from over 95 percent in July to 19 percent by November 2025, while confidence in the ZiG currency improved markedly. Approximately 35 percent of businesses surveyed expressed confidence in currency stability, up from just 10 percent previously. Firms cited tighter monetary policy, restrained money supply growth and improved exchange rate stability as key contributors to predictability.

CZI noted that this period represented the longest stretch of relative exchange rate and inflation stability since the reintroduction of a local currency in 2016, allowing companies to plan production, price goods more confidently and reduce speculative behaviour. While long-term caution remains, short-term confidence has strengthened, supporting planning, investment and employment decisions.