By Savious Madanhire
Unilever, one of the world’s largest consumer goods companies, has announced its exit from Zimbabwe after 80 years of operation in the country.
The company, which has been operating in Zimbabwe since 1930 has decided to shift its focus to more profitable markets through handing over its distribution operations to local partners.
In an internal memo Unilever said, “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.”
“This new and more efficient business model will stimulate the growth of the business, better serve Zimbabwean consumers with the brand they love and create jobs in sales, logistics and merchandising firms locally.”
This move is part of Unilever’s broader strategy to scale back operations in some African markets as it has been facing challenges such as the decline in formal retail and pressures from investors.
The company’s products including popular brands such as Sunlight, Omo and Vaseline, will still be available in Zimbabwe through local distributors.
Unilever’s exit from Zimbabwe may have significant implications for the country’s economy as the company has been a major player in the consumer goods market in Zimbabwe hence its departure may leave a gap in the market.
However, the use of local distributors may help to mitigate the impact of Unilever’s exist.
