Earlier this week social media flooded Red flag messages suggesting Shoprite which is a South African retail chain supermarket might close due to forex shortage in Malawi.
In responding to the rumours, Minister for Labour Vera Kantukule has assured Malawians on Thursday
“Madam Speaker, the reason I am asking the question directly to the Minister of Labour is to do with the many Malawians that are employed by this franchise. There is a lot of discomfort among them and they are keen to know if indeed those rumours are true,” said Botomani.
“Contrary to rumours, Shoprite is not winding up its operations in Malawi. They are just rumours,” said Kantukule in response, adding that the government engaged senior Shoprite management on the matter to verify the claims.
Kantukule assured the house that Shoprite is here to stay and that what they are closing down is its Zomba U-Save shop which for the last three years has been making losses and not its business across Malawi.
“Shoprite is here to stay.” Said Kantukule.
However, the company, according to Kantukule, is closing its Zomba outlet because it is operating on losses.
At least 25 Shoprite employees risk losing their jobs as the company has announced that it is closing it’s Zomba outlet.
Finance Minister Sosten Gwengwe, commenting on the retrenchment scare of the Shoprite employees, indicated that they have been assured that the other outlets for the supermarket in Blantyre, Lilongwe and Mzuzu will remain open.