Strengthening Zim’s M&A landscape is imperative

The abrupt collapse of the US$25 million TSL-Nampak deal is a stark reminder that Zimbabwe’s mergers and acquisitions (M&A) ecosystem remains fraught with structural and investor-related challenges.

While regulatory approvals, like those granted by the Competition and Tariff Commission of Zimbabwe, are necessary, they are far from sufficient to guarantee successful transactions. Shareholder alignment, governance integrity, and market confidence emerge as decisive factors that can make or break even well-conceived deals.

For companies like TSL and Nampak, the fallout from this deal highlights a critical gap in Zimbabwe’s corporate environment: the absence of robust mechanisms to ensure that high-value acquisitions can navigate complex shareholder landscapes without risking reputational damage or investor unrest. The market’s thin liquidity, macroeconomic volatility, and high inflation intensify these risks, making shareholder engagement and transparent communication indispensable.

Moreover, the collapse signals an urgent need for a more predictable, investor-friendly framework for M&A activity. Policymakers and regulators must work alongside corporates to foster a climate where strategic investments—critical for modernization, capacity expansion, and sectoral growth—can proceed with confidence. This includes not only clear and efficient regulatory pathways but also measures that enhance shareholder participation, protect minority interests, and mitigate risks linked to market and currency fluctuations.

Zimbabwe’s corporate sector is at a crossroads. The ambition to expand and modernize must be matched by a governance-conscious culture and a resilient M&A infrastructure. TSL’s prudent withdrawal, while disappointing in the short term, reinforces the message that sustainable growth is inseparable from strategic foresight, investor confidence, and market transparency.

If Zimbabwe is to attract meaningful investment, support industrial expansion, and create long-term shareholder value, the lessons from the TSL-Nampak episode must catalyze reforms to strengthen the M&A environment. Only then can the country transform deal-making from a high-stakes gamble into a predictable driver of corporate growth and economic development.