Succession planning pitfalls in Zimbabwean family businesses and how to avoid them: the cost of getting it wrong

By Natasha Munjoma

 

Succession planning is an essential step for any business, regardless of size or location. Leaders retire, change roles, or exit unexpectedly; without a plan, organisations risk a leadership gap, loss of institutional knowledge, and disruption to operations.

 

In family-owned businesses, succession planning can be especially complex because it intersects with family relationships, emotions, and legacy considerations—particularly when a founder retires or passes away.

 

In Zimbabwe, many enterprises can be characterised as family businesses. Most are small and medium enterprises (SMEs) that contribute significantly to employment and economic development. Despite their importance, a large proportion struggle to transition leadership and ownership beyond the second or third generation, often due to weaknesses in succession planning.

 

Understanding succession planning in a family business

 

· Succession planning is the structured process of preparing for the orderly transfer of leadership and ownership within a family-owned enterprise.

 

· It protects business continuity while managing family expectations, relationships, and long-term wealth objectives.

 

· Planning early strengthens the likelihood that the enterprise can be sustained across generations.

 

· Family businesses operate across three interconnected systems: the family, the business (management), and ownership.

 

· Family dynamics influence management decisions and ownership structures—and can either strengthen performance or undermine it where expectations are unclear.

 

· Alignment on roles, timelines, and decision-making reduces uncertainty and helps protect the business from avoidable disruption.

 

Common succession planning pitfalls—and how to avoid them

 

1) No formal succession plan

 

· What goes wrong: Succession is approached informally or deferred for too long.

 

· When a founder exits without a clear plan, uncertainty over ownership and management can create instability, internal disputes, and operational disruption.

 

· A common misconception is that a suitable successor will “naturally” emerge among the children; delaying key decisions is a leading cause of failed transitions.

 

· How to avoid it: Develop a comprehensive succession plan covering both ownership transfer and leadership transition.

 

· Define how successors will be identified, assessed, and developed.

 

· Review and update the plan regularly as business strategy, performance, and family circumstances change.

 

2) Poor communication and limited transparency

 

· What goes wrong: Owners delay succession conversations (or avoid them), often due to fear of conflict.

 

· Late or absent communication creates uncertainty and can undermine confidence among family members, employees, lenders, and key partners.

 

· How to avoid it: Communicate the agreed plan appropriately and early enough to allow stakeholders to prepare for the transition.

 

3) An unprepared—or unsuitable—successor

 

· What goes wrong: A successor is appointed without being ready for the role, or selection is based on family position rather than capability and commitment.

 

· If the successor lacks relevant experience, credibility, or interest, business continuity is jeopardised and owners may be forced to consider selling the business or appointing a non-family executive.

 

· How to avoid it: Introduce potential successors to the business early through structured exposure, mentoring, and progressively increased responsibility.

 

· Prioritise hands-on development under the founder’s guidance to build competence and confidence.

 

· Zimbabwe-specific consideration: Some families still default to primogeniture (inheritance by the first son) despite developments in the legal framework governing inheritance; succession decisions should be grounded in capability, values alignment, and the best interests of the enterprise.

 

4) Family conflict, governance gaps, and delayed handover

 

· What goes wrong: Family conflict and unclear governance delay decisions and weaken implementation.

 

· Founders may delay handing over control due to emotional attachment, fear of losing relevance, or concern that successors will deviate from the original vision.

 

· When transition is delayed until a crisis, the successor has limited time to learn the role, build relationships, and gain authority.

 

· Disputes may arise where several family members are potential candidates and selection criteria are unclear.

 

· How to avoid it: Evaluate potential successors early, agree objective selection criteria, and confirm alignment with the organisation’s values and strategy.

 

· Put clear governance in place: defined roles, responsibilities, decision rights, and a realistic transition timeline.

 

· Use independent advisers to add objectivity and specialist expertise in plan design, conflict management, governance, and successor development.

 

How BDO Zimbabwe can help

 

· Design and implement appropriate wealth and ownership structures (including family trusts where relevant).

 

· Support successor identification and development.

 

· Establish governance frameworks such as family constitutions and advisory boards to clarify decision-making and reduce conflict during transition.

 

Effective succession planning is not only about preserving a founder’s legacy—it is about protecting future growth, resilience, and the business’s continued contribution to the economy. With a proactive approach and trusted advisers, family businesses can transition successfully across generations while safeguarding both commercial objectives and family relationships.

 

 

 

DISCLAIMER

 

The views and opinions expressed in this article are those of the author, Natasha Munjoma, a Legal and Compliance Executive at BDO Zimbabwe and do not necessarily reflect the official policy or position of BDO Zimbabwe. This article is intended for informational purposes only and should not be construed as legal, tax, or financial advice.

 

 

 

For further information, please contact any of our specialists below:

 

Maxwell Ngorima

 

Tax Partner

 

+ 263 242703876

 

mngorima@bdo.co.zw

 

 

 

Natasha Munjoma

 

Legal and Compliance Executive

 

+ 263 242703876-8

 

nmunjoma@bdo.co.zw