9 July 2009
Maputo — The giant textile factory Texlom, in the southern Mozambican city of Matola, paralysed for the past decade, will resume production in the near future, according to the Minister of Industry and Trade, Antonio Fernando.
Fernando told AIM "preparations for the factory's relaunch are very advanced. Very soon Texlom will be producing".
The investment required comes from the Aga Khan Foundation, and the textiles produced will be sold on the Mozambican and regional markets. The number of jobs created is about 100, and the workers are mostly women. Currently the staff are undergoing training prior to the take-off.
Fernando said the government has interested another business group in a second paralysed textile factory, Riopele, in Marracuene district, about 30 kilometres north of Maputo. "The investors are already in Mozambique to buy Riopele", he said - but the Minister did not name these investors or give any further details.
The government strategy for the textile and clothing sector, he said, was that anyone who invests in these factories "will benefit from tax exemption from ten years, and will enjoy facilities in importing equipment".
Fernando added that such benefits were common practice in countries with highly developed textile industries, such as China, India and Thailand, and were necessary in order to make Mozambican textiles competitive on the international market. He described these measures as part of the government's efforts to create a more favourable environment for business in Mozambique.
"I believe that with the progress we are making, the industries will be more aggressive and will be able to place their products in the United States, for instance, under the AGOA (African Growth and Opportunity Act) regime, which allows Mozambique to sell its produce in the US free of duty", said Fernando.
Among the textile companies that are already functioning is Texmoque, in the northern city of Nampula, which, after a long period of paralysis, was sold to Tanzanian investors. "That factory is already employing a large number of workers", said the Minister.
Lm/pf (341)
Be the first to Write a Comment!
Copyright © 2009 Agencia de Informacao de Mocambique. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
