After 80 years of doing business in Zimbabwe, consumer goods giant, Unilever has announced that it will be closing shop.
Quite a sad and very unfortunate development as it reflects the country’s economic meltdown over the last couple of years.
“Unilever will move to a new model that serves Zimbabwean consumers through a network of Zimbabwean distribution firms rather than through Unilever owned operations by the end of the year,” the British multinational company explained in a statement.
And maybe to pacify the failing regime, it added, “The new and more efficient business model will stimulate growth of the business, better serve Zimbabwean consumers with the brands they love and create jobs in sales, logistics and merchandising firms locally.”
Some of Unilever’s brands that have been used by generations include home care products such as: sunlight, Domestos, Omo and Surf washing powders among others. In the beauty range, it’s best known for: vaseline, lux and lifebuoy.
In 2008, the company opened a new Royco plant in Harare as it had renewed confidence in the country but the economic instability has since hit them hard.
While the regime has been trying to lure investors through the mantra, Zimbabwe is open for business, the economic situation on the ground actually repels potential stakeholders.
Though the economy is dollarized, the government has been pushing for full use of the local currency, ZiG which was introduced in April.
Touted as ‘strong’ since it’s backed by the country’s gold reserves, the ZiG has been losing value against the US dollar, with fears it will eventually be rendered useless like other former local currencies.
It is this unpredictable and unstable economic environment coupled with corruption and bad policies that have been the country’s biggest undoing.
At independence in 1980, Zimbabwe was the most industrialized country in sub Saharan Africa after South Africa but now has the fastest shrinking economy in the region; some are actually calling it a failed state.
Though Uniliver is the latest global company to close shop in Zimbabwe, hundreds have done so over the last two decades resulting in massive unemployment and poverty.
Some big names that have turned their backs on Zimbabwe include Barclays and Standard Chartered Banks, accounting firms, Deloitte and Price Waterhouse Coopers as well as oil and gas companies, BP and Shell.
My hometown Bulawayo, which was the country’s industrial hub, is a shadow of its former self, with churches now occupying former warehouses.
Once home to big companies such as Dunlop, Merlin and Hunyani Paper and Packaging, which by the way was my father’s employer, the famous Belmont Industrial site is now nothing but a shell.
It’s sad, but it’s the reality we now live in.
