The exit of Bwin from the Zambian market has raised concerns about the impact of foreign companies on the local economy and the need for stronger regulations to protect the rights of employees as over 70 employees will be left with no benefits nor clear vision about the company’s exit from the Zambian market.
The Austrian online betting brand acquired by Entain plc earlier confirmed to ZBT that it is exiting the Zambian market claiming that there is a change of strategy at the group level and the focus is now shifted to a high-growth market. However, it has emerged that only 3 people have been served with termination letters.
BWIN Africa Chief Marketing Officer SPENCER OKACH had indicated during the time when Bwin was officially entering the Zambian market in 2022 that 15 Zambians were employed before the launch and 50 more people where going to be employed after the Launch.
Speaking in an exclusive interview with the Zambian Business Times – ZBT, Bwin’s country marketing manager, Golden Ngandu, however said only three people were directly employed by the company, while the rest were outsourced adding that only 3 people were served with termination letters.
When asked about the fate of the ‘outsourced employees’, Ngandu explained that it’s the same procedure that happens when a company shuts down meaning the rest of the people will only be left with nothing. This statement has sparked controversy as many are questioning the fairness of leaving employees without any notice or compensation.
The company claimed that there was a change of strategy at the group level and that the focus has now shifted to a high-growth market. However, this decision has left a number of Zambians with nothing but CVs as they are left without jobs.
Bwin, a global sports betting platform, was launched in Zambia in November 2022 after seeing the booming market of online betting in the country. However, the company says it has since given notice to all regulators, including the Ministry of Tourism, of its decision to pull out of the Zambian market.
Ngandu however stated that the three employees who were directly employed by the company were served with separation letters and each entered into a separation agreement that spelled out all the details of the benefits and the reasons why the company decided to exit the market.
Meanwhile, there has been some allegations indicating that only the big fish “directors” were entered into seperation agreement, leaving the majority poor zambians with nothing to take home with.
“We have since given notice to all our regulators, including the Ministry of Tourism, and in terms of staff like for Zambia, we had a co-staff complement of 3 people who were directly employed by the Company the rest were outsourced and only the three people were notified and each was entered into a separation agreement. The agreement is the one that spells out all the details of the benefits and the reasons why the Company decided to pull out of the Zambian market.”
As the Zambian government works to attract foreign investment, it has been challenged to ensure that the interests of its citizens are not overlooked.
Picture below is Trade & Commerce Minister Chipoka Mulenga welcoming Bwin as they launched operations in Zambia.
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