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Defunct textile factories to be revived
Jul '09
The paralyzed textile factory in the Southern Mozambican city of Matola will restart its production soon, informed the Minister of Industry and Trade, Mr. Antonio Fernando. Texlom is a big textile factory located here, which was paralyzed for the past whole decade.

The preparations of reviving the factory are in full swing. The investments required for this resumption comes from the Aga Khan Foundation. This restart will generate about 100 jobs where the workers will mostly be women.

Prior to the re-commencement of the factory, training of staff is in progress. The textile produce of the factory will be sold in the Mozambican as well as in regional markets.

The Minister further informed that another business group is interested in the second defunct textile factory, Riopele in Marracuene district. The investors are already in Mozambique to buy this factory, he informed.

For the textiles and clothing sector, the government has a strategy, according to which the investors of these factories will enjoy benefit of tax exemption for ten years as well as facilities in importing equipment, he added.

Such benefits are necessary for these closed textile factories in Mozambique, in order to make their products more competitive on the international level.

These kinds of benefits are common practice in countries such as China, India and Thailand, where textile industries are highly developed, added the Minister.

The government is putting in full efforts to create more favorable business environment in Mozambique, he said. He believes that due to the progressive efforts of the government, the industry could place their products in the markets of the US.

For instance, under the AGOA (African Growth and Opportunity Act) regime, Mozambique can sell its products in the US, free of duty, added the minister.

Fibre2fashion News Desk - India

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