The Zambian economy, already grappling with a perfect storm of economic headwinds, has suffered another significant blow. Dairy giant Parmalat, a subsidiary of the French conglomerate Lactalis, has announced the abrupt closure of its local manufacturing plant, effective April 1st, 2025. This decision, which will see the company shift to importing products from South Africa and other subsidiaries, casts a long shadow over the Zambian economy, already reeling from rampant unemployment and economic instability.
In a statement that reeks of corporate indifference, Parmalat attributed the closure to a confluence of factors: Zambia’s worsening economic conditions, persistent load-shedding, and a crippling drought. While these challenges undoubtedly played a role, the company’s own eight years of financial struggles and questionable business decisions paint a more nuanced picture.
The fallout will be devastating. Hundreds of employees face an uncertain future, thrown onto the streets of a nation grappling with soaring unemployment rates. Local dairy farmers, who supplied milk to Parmalat, are also facing a bleak outlook, with their livelihoods hanging by a thread. While Parmalat has vaguely promised “support during the transition,” the details remain shrouded in ambiguity, leaving many to fend for themselves in a country with limited social safety nets.
Parmalat’s decision to prioritize imports over local production is a stark reminder of the harsh realities of globalization. The company, owned by French billionaire Emmanuel Besnier, has chosen profits over livelihoods, gutting Zambia’s dairy industry and leaving consumers at the mercy of imported goods. This move not only undermines local production but also raises concerns about food security and the long-term sustainability of Zambia’s agricultural sector.
The Parmalat closure serves as a damning indictment of Zambia’s current economic trajectory. With inflation spiraling out of control, power cuts crippling industries, and drought devastating agriculture, the country’s economy appears to be teetering on the brink. The government’s inability to address these challenges effectively has created an environment increasingly hostile to foreign investment, leaving Zambia vulnerable to capital flight.
This is not merely the story of one company’s misfortunes; it is a stark reflection of a broken system. The government, businesses, and ordinary Zambians must now confront the harsh reality of an economy in freefall. Survival, not progress, has become the dominant narrative, leaving many to question the future of Zambia’s economic prosperity.
