Minister downplays exit of multinationals
Publish date: 03 February 2025
Issue Number: 1111
Diary: IBA Legalbrief Africa
Category: Zimbabwe
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. According to New Zimbabwe, the recent departure of businesses such as Unilever and Deloitte show 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 would do all it could to keep big foreign investors in Zimbabwe, he was 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 ....’ In 2024, Deloitte exited Zimbabwe, and its operations were taken over by Axcentium, a firm led by former Deloitte partners. PwC also left the market last year, with Vista Chartered Accountants taking its place. However, 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.