Story by Tichaona Kurewa
ZIMBABWE’s corporate rescue framework, introduced under the Insolvency Act of 2018, is delivering strong results, with more than 90 percent of distressed companies successfully restructured since the law came into effect.
The legislation replaced the former judicial management system, which had long been criticised for its lack of timelines and limited prospects for recovery, with a structured, time-bound corporate rescue model aimed at restoring viability while protecting jobs and creditor interests.
Since June 2018, more than 100 companies have been placed under corporate rescue, with 112 cases having reached successful completion, according to figures from the Office of the Master of the High Court.
Several high-profile firms, including Makomo Resources, Cold Storage Company, Truworths Zimbabwe, Metro Peach and Hilmax Engineering, are now operating viably following the implementation of approved rescue plans.
“In percentage terms, we have recorded success stories in almost 95 percent of the cases placed under corporate rescue. These are companies that would otherwise have gone into liquidation,” Master of the High Court, Mr Eldard Mutasa said.
Makomo Resources Director Mr Raymond Mutokonyi said the process played a critical role in stabilising the coal producer after it voluntarily entered corporate rescue.
“We went into voluntary corporate rescue and worked with a registered business rescue practitioner to restructure the business. The process took about two years and helped us regain market confidence as debts were settled through structured arrangements and cash flows from operations. Corporate rescue gave us breathing space to start afresh, with an independent practitioner balancing the interests of creditors and the business, ensuring debts were paid while operations continued.”
The corporate rescue model is increasingly viewed as a key pillar of Zimbabwe’s economic recovery architecture, offering an alternative to liquidation while preserving productive capacity.
Data from the Office of the Master of the High Court indicates growing confidence in the framework. Since January 2025, 27 companies have been placed under corporate rescue, compared to 24 over the same period last year, while liquidation filings have declined sharply.
Authorities say the trend reflects improved awareness of the framework and a shift by struggling firms towards structured recovery rather than closure.
