This week, OKZ announced that it had parted ways with three executives, including CEO Max Karombo, who has been replaced by former CEO Willard Zireva. There has been a lot of discussion regarding whether rehiring the former executives is a wise decision or if the board is running out of ideas. Here are some data points to consider.
Another source for a bailout was supposed to be from Gvt of Zw. There is no doubt about the influence OK Zim on the economy as a whole. Employment, taxes, support to agric sector, global image projected by failure of such a massive entity etc. We have seen it in major economies, gvts coming on board to bail out major players with grants and concessionary loans. Though I doubt much if that will happen.
Forget GoZ... Frankly GoZ has faced better crises before to bailout than this, Banks in Particular. Did they chip in before? I doubt! If they wanted to provide relief today, How would they do it? And with what money, from where ? I doubt they'll even consider tax relief 😅😅😅
I agree completely with this stack. I also firmly believe the rehiring of Willard Zireva as CEO of OKZ is a calculated strategic move. With more than 30 years of experience at OKZ, including 16 years as CEO, Willard brings back invaluable expertise and connections to the table. His background with Delta, in particular, could be a game-changer.
As we've often discussed one would need a big brother in these circumstances, I can safely bet, Delta is going to have or has been the 'Big Brother,' moreso with this scenario. Delta holds a significant 22% stake in OKZ's debt ($177 million in ZWL). The previous management's strained relationships with creditors, mostly, probably, including Delta, led to empty chiller shelves and disrupted supply chains.
Willard's return signals a renewed effort to mend fences with Delta and other creditors. His connections within Delta, combined with his experience navigating Zimbabwe's complex business landscape, make him the ideal candidate to lead OKZ's revival and restore creditor confidence.
This move can be seen as an olive branch to Delta, acknowledging the importance of their partnership. By bringing back Willard, OKZ is essentially saying, 'Let's work together again.' With Willard at the helm, I'm optimistic about OKZ's prospects. Delta has a vested interest in OKZ's success, and with Willard leading the charge, I'm confident they'll work together to drive growth and recovery.
In my view, Willard Zireva is coming for two key reasons. Firstly, his previous connections with Delta will be invaluable in mending this relationship that's if it was compromised( which I don't doubt it suffered). Secondly, resolving credit issues with Delta, Zimbabwe's largest listed company, could have a positive trickle-down effect on OKZ's relationships with other creditors. This strategic move could be the catalyst for OKZ's turnaround. No doubt!
I think this is a bad move. The business environment has changed so much that I don't think he can breathe fresh blood into OK. He would be best served as a mentor or guide to a fresh mind.
I don't think OKZ really needs anything new, infact nommatter how good, a new person unknown sufficiently to its existing stakeholders largely creditors would be the best way down!
The boat @ OKZ is sinking and in such times, you call the most experienced captain you can find to help navigate. Not someone who can tell you the best future and how they can do it. OKZ is not dreaming future it's dreaming Survival. They need something that comes out sort of like political within the industry circles, largely a message to stakeholders that it's now mending it's Brand and reputation with them all. Bringing a familiar face, and a force in industry, I can argue, is the most rational thing for the short term and stability!
I'm conflicted. I get what Jose below is saying and it makes so much sense. But at the same time I still think the business environment has shifted and not sure if Zireva on beat. Although when the ship is sinking an old experienced captain is always best.
I see your point. I just see this as a stead the ship as Jose mentioned. It's possible that for many of the suppliers Zireva helped them get started especially since he has been with OK since 1984.
Best move under the circumstances
Another source for a bailout was supposed to be from Gvt of Zw. There is no doubt about the influence OK Zim on the economy as a whole. Employment, taxes, support to agric sector, global image projected by failure of such a massive entity etc. We have seen it in major economies, gvts coming on board to bail out major players with grants and concessionary loans. Though I doubt much if that will happen.
Interesting didn't know they had looked at that.
It definitely a possibility. OKZ is too important.
Forget GoZ... Frankly GoZ has faced better crises before to bailout than this, Banks in Particular. Did they chip in before? I doubt! If they wanted to provide relief today, How would they do it? And with what money, from where ? I doubt they'll even consider tax relief 😅😅😅
I agree completely with this stack. I also firmly believe the rehiring of Willard Zireva as CEO of OKZ is a calculated strategic move. With more than 30 years of experience at OKZ, including 16 years as CEO, Willard brings back invaluable expertise and connections to the table. His background with Delta, in particular, could be a game-changer.
As we've often discussed one would need a big brother in these circumstances, I can safely bet, Delta is going to have or has been the 'Big Brother,' moreso with this scenario. Delta holds a significant 22% stake in OKZ's debt ($177 million in ZWL). The previous management's strained relationships with creditors, mostly, probably, including Delta, led to empty chiller shelves and disrupted supply chains.
Willard's return signals a renewed effort to mend fences with Delta and other creditors. His connections within Delta, combined with his experience navigating Zimbabwe's complex business landscape, make him the ideal candidate to lead OKZ's revival and restore creditor confidence.
This move can be seen as an olive branch to Delta, acknowledging the importance of their partnership. By bringing back Willard, OKZ is essentially saying, 'Let's work together again.' With Willard at the helm, I'm optimistic about OKZ's prospects. Delta has a vested interest in OKZ's success, and with Willard leading the charge, I'm confident they'll work together to drive growth and recovery.
In my view, Willard Zireva is coming for two key reasons. Firstly, his previous connections with Delta will be invaluable in mending this relationship that's if it was compromised( which I don't doubt it suffered). Secondly, resolving credit issues with Delta, Zimbabwe's largest listed company, could have a positive trickle-down effect on OKZ's relationships with other creditors. This strategic move could be the catalyst for OKZ's turnaround. No doubt!
I think this is a bad move. The business environment has changed so much that I don't think he can breathe fresh blood into OK. He would be best served as a mentor or guide to a fresh mind.
I don't think OKZ really needs anything new, infact nommatter how good, a new person unknown sufficiently to its existing stakeholders largely creditors would be the best way down!
The boat @ OKZ is sinking and in such times, you call the most experienced captain you can find to help navigate. Not someone who can tell you the best future and how they can do it. OKZ is not dreaming future it's dreaming Survival. They need something that comes out sort of like political within the industry circles, largely a message to stakeholders that it's now mending it's Brand and reputation with them all. Bringing a familiar face, and a force in industry, I can argue, is the most rational thing for the short term and stability!
Thanks for the comment. You could be right.
So would you have proposed they went out and found a fresh face immediately?
I'm conflicted. I get what Jose below is saying and it makes so much sense. But at the same time I still think the business environment has shifted and not sure if Zireva on beat. Although when the ship is sinking an old experienced captain is always best.
I see your point. I just see this as a stead the ship as Jose mentioned. It's possible that for many of the suppliers Zireva helped them get started especially since he has been with OK since 1984.
So he maybe able to negotiate better