LABOUR Commissioner Givens Muntengwa has urged employers to officially inform the Ministry of Labour and Social Security before closing businesses.

Mr Muntengwa says this is crucial for providing guidance and support to affected employees and ensuring fair treatment, as well as facilitating a smoother transition. 

Speaking in a telephone interview with ZANIS in Lusaka, Mr Muntengwa emphasised that the lack of official communication from employers creates uncertainty and challenges for the Ministry.

He noted that he is particularly concerned with the sudden decision by Parmalat to close its manufacturing plant in Zambia, citing the country’s unstable economy, persistent load-shedding, and drought which has negatively affected most households.

Mr Muntengwa regretted that the closure will likely lead to significant job losses and uncertainty for local dairy farmers who supplied milk to Parmalat. 

Meanwhile, Economist Emmanuel Zulu also noted that the shutdown of Parmalat will have far-reaching consequences for Zambia’s economy through job losses, significant increase in imports of dairy products as well as contributing to Zambia’s trade deficit. 

Mr Zulu suggested that engaging with the government could be a viable option for Parmalat to reconsider its decision. 

“By working together, they might find solutions to the challenges that led to the closure announcement,” he stressed.

Mr Zulu also added the need for the government to take proactive measures to mitigate the impact of the closure by providing support to would be affected employees, local dairy farmers, as well as implementing policies to attract new investments and stimulate economic growth.

Last week, Parmalat, a subsidiary of the Lactalis Group owned by French billionaire Emmanuel Besnier announced the closure of its manufacturing firm in Zambia on April 1st, 2025.