Mthuli Ncube Downplays Multinational Exits, Emphasises Local Resilience

Zimbabwe's Minister of Finance Mthuli Ncube (Image: World Economic Forum)
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DAVOS – As Zimbabwe faces an increasing exodus of multinational companies, Finance Minister Mthuli Ncube remains optimistic, highlighting the rise of local businesses stepping in to fill the gaps.

Recent departures by firms such as Unilever, Deloitte, and PwC underscore the challenges Zimbabwe faces as foreign investors find the market less viable. Long-standing currency issues and inconsistent economic policies have made the country unattractive, particularly for service-based multinationals.

Speaking at the World Economic Forum in Davos, Ncube acknowledged the trend but expressed confidence in local investors’ ability to adapt and seize opportunities. “You cannot stop companies from disinvesting,” he said. “But I’m pleased that for some of these disinvestments, you have local investors who are ready to take over those companies.”

Deloitte, which exited Zimbabwe in 2024, saw its operations taken over by Axcentium, a firm led by former Deloitte partners. Similarly, Vista Chartered Accountants replaced PwC after its exit. Ncube lauded these transitions as examples of local entrepreneurship stepping up.

Despite Ncube’s optimism, economic observers remain critical. Business commentator Brighton Musonza described the departures of globally recognised firms as more than symbolic, calling them a reflection of systemic governance and economic issues. “When such institutions leave, it sends a loud message to local and international stakeholders about Zimbabwe’s operating environment,” he said.

Retailer Choppies exited in December, citing exchange rate policies that have eroded the formal retail sector. Its operations were sold to Sai Mart, owned by Deputy Minister Raj Modi.

Other notable exits include Unilever, which transitioned to using local distributors, Standard Chartered, which sold its operations to FBC Holdings for $24 million, and Holcim, which sold its cement plant to Fossil for $29.7 million in 2022.

While acknowledging these challenges, Ncube insists his government is working to attract new investment and address obstacles faced by businesses. “We are not short of local investors who are ready to step in,” he stated. – NewZwire