Network marketing platform Longrich has been banned with immediate effect in Namibia.
According to reports in The Namibian the Bank of Namibia has declared Longrich Bioscience as an illegal financial scheme, and has called in its promoters to cease their operations immediately.
“Considering the assessment made, the bank hereby declares Longrich as an illegal financial scheme. The promoters of Longrich have been directed to cease their operations immediately”, communications deputy director Kazembire Zemburuka said in a media statement on Friday.
The central bank had launched investigations into the scheme following constant public enquiries on the legitimacy of the business activities of Longrich, and the results indicate that it is illegal.
Although the company aims to be selling a variety of household cleaning and personal care products and pet care products, Zemburuka said the core activities involve the recruitment of members at a fee.
“Participants are encouraged to introduce new members to the scheme to supposedly buy products, and earn monetary rewards and progress in status. As a result, the initiating member slows in recruiting, and starts to benefit from the contribution of the new members subsequently joining them,” he explained.
Longrich is also very popular in Zimbabwe, amongst other network markting platforms like Forever Living.
Namibia is the first African country to ban Longrich.
