350 lose jobs as Home Corp, Furnmart exit Zambia

Filed under: Breaking News,Business |

furnmart-and-home-corpOVER 350 workers have been thrown out on the streets after the South African furniture chain shops, Home Corp Zambia and FURNMART Limited closed business as they prepare their exit out of Zambia.

It is not clear why the company is leaving when more South African chains are opening  new outlets in Zambia.

The workers have expressed concern that they have not been given any guarantee of receiving their dues once the South African company leaves, although they have been promised to be paid at the end of next month.

One of the affected employees complained that the company has since engaged external security at the premises at Manda Hill and the sister company FURNMART operating as Home Corps in other towns across the country.

“They have said they will give us our terminal benefits by November monthend, but our fear is that Home Corp have already put external security at their premises including the warehouse, which means they could be leaving anytime, maybe even before they pay us our dues,” he said.

He said the company management have complained of high rentals paid in US dollars which have become too high for the business with the soaring exchange rate against the Kwacha.

He explained that they have attributed the unfavourable economy and the high cost of doing business in Zambia as some of the grounds for their being forced out of business.

And New Revolution Party (NRP) president Cozmo Mumba has called on international investors to help the Government build the Zambian economy.

Dr Mumba said the Government was aware of the harsh business conditions, but that it was working to make the cost of business affordable. “Government is already doing something to improve the economy and make doing business favourable for the running of the economy for the investor and the Zambian people.

“My appeal to the workers at both Home Corp and FURNMATT Limited is that they should remain calm as Government looks into their situation, but at the same time call on the authorities to come up with monitoring mechanisms to check on the performance of investor companies to avoid leaving many Zambians stranded after their closure,” he said.

Daily Nation


8 Responses to 350 lose jobs as Home Corp, Furnmart exit Zambia

  1. It is undeniable fact that the cost of doing business in Zambia is extremely high. Even the famed agriculture diversification will lamentably fail because of the same. Electricity, water and rentals are expensive. The other issue is that the councils have been left to survive on levieing businesses heavily. Nothing works economically in Zambia. Shamenda’s minimum wage philosophy also brought misery to most businesses.

    October 30, 2016 at 8:17 am

  2. Is Cosmo now a government spokesman? please educate me. He is a Doctor too?

    October 30, 2016 at 9:29 am

  3. Has it occurred to Government officials that this is a trick used by some foreign companies to evade tax? In Zambia we have a period of the so-called tax holiday where certain taxes are exempted. Just about when that tax holiday is about to expire and taxes are about to fall due, some of these companies will come up with all sorts of excuses to close their businesses in Zambia, only to come back with a different name, probably the name of a sister company. Sometimes they even come back in the same name. Ackermans is one such example. They had come to Zambia earlier when privatization started. A few years later they left, citing poor business environment. Now they are back again using the same business name.

    Just where are the watchdog organisations in this country? Or is it that they know what is going on and deliberately do nothing about it? If that is the case, then I can smell a rat, someone, or is it some people are cashing-in while the rest of us only cry foul. Can please Ministry of
    Commerce critically look at this trend.

    October 30, 2016 at 10:43 am

  4. EVICTED ZOMBE FARM FAMILIES! Is that what will become of Zambia? If someone is in government; even if they were born yesterday, they can come with government guns and evict you from your land? Is that all what it implies to be an elected government; gaining power to acquire land anywhere and then probably mismanage and misappropriate government funds to build mansions on such land? Where are the opposition members of parliament? Kindly look at this matter and exhibit your side of alternative government. Or does the silence by members of the opposition mean that they would have treated the people of Zombe in the same way they are being treated today? I sincerely wish to see how UPND would tackle this matter. It does not matter if those people look poor. I was so touched by that old woman who stated clearly the history of that place. Most of the people that now want to displace her were not even born on 24 October 1964. How has this country Zambia come to respect foreigners so much at the expense of indigenous black people? Is it a curse? Our own government should not be so cruel to us; the black people of this country. Why are there no Indian-Zambians being mistreated in this manner everyday in this country? Why is it only black Zambians suffering so much? Not even refugees suffer the way I see indigenous Zambians suffering in the country. So money has come to rule? I sincerely wish to see MPs in parliament take up this matter and for once restore our pride in the independence of this country.

    October 30, 2016 at 12:49 pm

  5. We shall see if its only Dundumwezi people who shall suffer.

    October 30, 2016 at 1:43 pm

  6. Dundumwezi denied Zambia of a Bill of rights by decampayning it to the bitter end.The above situation must squarely be blamed on HH,GBV and UPND at large.Workers rights connot be protected with a lame duck bill of rights.So I urge the MPs to table the Bill of Rights and the presidential tenure of office Bills sooner than later.

    October 30, 2016 at 4:46 pm

    • You must be Frank Bwalya. The dull evil priest who thinks and blames everything on HH. Bill of rights has nothing to do with the current economic situation. Investors are simply not making profits due to mismanagement of public resources that are supposed to foster a business friendly environment that benefits both workers and employers

      A true Zambian
      October 30, 2016 at 5:12 pm

  7. Elyo lwanya

    Matako Ayo
    October 30, 2016 at 8:22 pm

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