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Chinese and Tanzanian investors want to invest in Mulungushi textiles-GBM

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Defence Minister Geoffrey Mwamba has disclosed that three investors have so far expressed their readiness to invest in Mulungushi Textiles in order to revamp operations at the plant.

Mr. Mwamba stated that two Chinese companies and a Tanzanian firm are ready to invest in the textile company once contractual issues surrounding the ownership of the textile between Government and the Chinese investors who are the majority shareholders are concluded.

He stated that negotiations over the contract have not gone smoothly because the major shareholders are the ones who were calling the shots.

Mr. Mwamba, however, stated that Government intends to engage the Chinese Mission in Zambia to bring its Chinese partners into the country to conclude talks over the ownership of Mulungushi Textiles.

He told journalists at a media briefing in Lusaka yesterday that the Ministry of Justice is currently studying the contract to find out if it is adjustable.

Mr. Mwamba stated that once the Ministry of Justice gives a go ahead, Government will not hesitate to engage any investor in order to reinstate operations at the textile.

H e said the reopening of Mulungushi Textile is the only answer for cotton farmers who cannot find market for the crop.

“Tanzania is one of the world’s most users of cotton and we have abundant cotton in this country. Our farmers have a lot of cotton but they cannot find where to sell this crop and so if everything go as planned operations at Mulungushi textile will resume almost immediately,” Mr. Mwamba said.

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65 COMMENTS

    • Mulugushi Textiles is under ministry of Defense. It was established primarily to produce military fabric in the early 80s at the hieght of the liberation struggle of Southern Africa. ZNS has been looking after it after its business falterd due to MMD’S open doors policy to massive salula imports and heavy taxation on manufacturing and incentives for traders e.g. shoprite (the manufacturing tax regime which drve Dunlop of Ndola among many other manufacturing companies into the ground)

    • Mulungushi textiles since inception has always been under the Ministry of Defence. Even in MMD you recall the days of BY.

    • Just stay where you are instead of exposing your ignorance. The Defence Minister is the rght person to comment on Mulungushi Textiles in the current arrangement.

  1. Is the Great Bag of Manure gearing up to take over from the ailing Ukwa? So PF will field GBM if there is a presidential by-election – an avowed tribalist and wife beater with a very serious obesity problem?

  2. This is some friday joke right.The Chinese have turned those buildings into Chicken runs and Piggery.There is no machinery whatsoever! What is there to invest in? Buildings or that land? I dont even think Zambia’s textiles industry can ever flourish looking at the culture which has been westernised.Keep on dreaming for now.

  3. The idea of finding an investor for Mulungushi Textile is a good one ONLY if by all means possible our govt can’t manage 2 run it alone due 2 finance.however,in as much as i wud want the Mulungushi Textile 2 b invested on,i strong think we shud giv 2 a dfrent investor apart from chinese.yes its true that the proposed investors are Chinese 2getha with Tanzanian.when observd carefully,i can clearly see that its stil Chinese investor coz they are the majority shareholders who hav jst partnered with Tanzanians.PF please wake up; CHINESE ARE TAKING OVER ZAMBIA SLOWLY!!

  4. No.s 1 & 2 For your information, Mulungushi Textiles falls under the Ministry of Defence. GBM is therefore the right person to talk about it.

    • A textile factory under the Ministry of Defense? I suppose next you’ll tell us that health services is under Ministry of Local Government, customs and excise under Ministry of Chiefs (customs, right), and roads under Ministry of Home Affairs (since I use the road to drive home).

      Still, I guess with this government and its daily shake-ups you never know!

    • If Manchester can be in London anything is possible with this lot. Remember they specialize in aligning and re-aligning.

  5. I think the starting of operations at ZMCT is long over due. This company can do a lot in providing uniforms for the army and other security wings including security firms in zambia. Bravo PF

  6. The textile is under defense? That’s a joke! If correct then we really have a problem in Zambia. Textile industry is on the slump world wide. South African has closeds down almost 60% of the factory’s and the buy from china coz it’s cheaper! Has a study been done or is it just sucking their fingers. 
    Do we need a genary or a textile factory? The material from china is the cheapest in the world. Even the americans buy from them. PF have you researched this business deal? I can tell you for a fact that those wood heads have not done that. They will take whatever the chinks tell the. The problem with CNP is that they are panicking and that will be their down fall.

  7. Someone help me…”Tanzania is one of the world’s most users of cotton and we have abundant cotton in this country” …How does this help a textile factory in Zambia?

  8. @1 Exhaust Blown Diffuser: Mulungushi Textiles is under ministry of Defense. It was established primarily to produce military fabric in the early 80s at the hieght of the liberation struggle of Southern Africa. ZNS has been looking after it after its business falterd due to MMD’S open doors policy to massive salula imports and heavy taxation on manufacturing and incentives for traders e.g. shoprite (the manufacturing tax regime which drve Dunlop of Ndola among many other manufacturing companies into the ground)

  9. Why not have a Chinese- Zambian joint venture instead of a Sino-Tanzanian one… Why have an important business as textiles run and owned completely by foreigners. The government should have some kind of a percentage in these ventures, so that the employees( Zambians) are not paid prison camp wages…

  10. #10.1 Chiluya Kaputu: Just leak your electoral wounds quitely. Did MCS formulate MMD’s taxation policy or could he singlehandedly have brickwalled the principal drivers of economic policy then, FTJ and Penza. LET MCS RULE THE PEOPLE OF ZAMBIA VOTED FOR HIM. WAIT FOR 2016 FOR ANOTHER THRASHING!

  11. the company was a joint venture between Ministry of Defence and Chinese Government until it was closed. the Chinese created smaller companies that have continued  to run and left the JV to collapse. Before new investors are brought in it should be established why government was not given shares in the companies that were created since it was not receiving any dividends. As stated by one commentator above the textile industry is very competitiveness and mainly depends on cheap abundant labour which Zambia does not have. Even countries like China are losing the competitiveness due to rising labour cost and Bangladesh, Cambodia, Thailand and Vietnam are taking over. To survive the company would need protection by increasing duty on textile products

  12. WE HOPE TO SEE IT WORK BECAUES COTTON FARMERS HAVE BEEN EXPLOITED BY
    THIS SO CALLED COTTON GINNERS ASSOCAITION,BY THE WAY WHAT IS THE COMPETION COMMISSION DOING IS SUCH AN ASSOCIATION ALLOWED TO FIX PRICES

  13. Exhaust Blown Diffuser, From manchester in london and a lot of you on this blog who just ju,mpt to comment without rhym ore reason, yes, Mulungushi Textiles falls under the MNinistry of Defence and therefore it is under GBM’s portfolio. Don’t just blog out of ignoranc e.

  14. @#3.Obviously an impostor, clearly a Bemba hater. Won’t take you anywhere, hate-man. Just leave GBM alone to do his job, hate-man.

  15. Mulungushi textiles used to manufacture military fatigue and therefore falls under his portfolio, in a way!!!

  16. #16 If he was against the policies of the govt of which he was part of and there is such a thing as collective responsibility, he could have done the honourable thing and resign like LPM did. Instead, Ukwa used violence and the threat of rape in order to push for an un-constititutional third-term for his friend FTJ. You can not re-write history just because it does not fit into your myopic view of the world just like you can not deny that the MMD as a party made many achievements when the likes of Ukwa were no longer part of it. In fact this pf administration, with the likes of Scott, Luo and Sakeni is closer  in its composition to  the Chiluba regime that you condemn than the one led by LPM or RB.  

  17. #21 So I must be a Bemba hater because I dont support Bemba tribalism and dont condone domestic violence? Wow if being Bemba means that you support gross incompetence and violence against women simply because it is perpetrated by a Bemba then I wish my parents were not from Chinsali and Mpika if these are the values of their people. What is their to be proud of as a Bemba by the behaviour and utterances of GBM? We should be shunning him as he an embarrassment to us and a danger to the future of our children. But if people think like you do then dont be surprised when the other Zambian tribes rise up and start killing Bembas one day. The only problem is that your despicable views are a danger to all of us simply because of where we come from.

  18. #24, if we met you on the street, you wouldn’t say that. You would just put your tail between your legs but because you are sitting behind a keyboard, you have all of a sudden become a lion.

    • GK , you just show us how uncivilized you are. All you think of is street violence. What is wrong with #24 expressing him/her self on this forum, but his/her comments hurt you that all you think of is to wish he/she were on the street and you would do what? Strangly I am bemba and I strongly oppose GBM’s utterances on tribal appointments. Its opposite of what the PF preaches. If you say tribalism is bad, then dont be tribal yourselfs. You cannt continue calling tonga and lozies tribal and we are tribal yourselves. I hate hipocrites, even if it were my mother

  19. WHY CALL FOREIGN INVESTORS? IF THERE ARE ANY ZAMBIANS WITH VIABLE PLANS LET THEM FORM A CONSORTIUM AND TAKE OVER THE OPRTAIONS OF THE COMPANY. IF THAT FAILS WHY CNT GOVT PARTNER WITH LOCAL INVESTORS AND REVIVE THE OPERATIONS OR BETTER FLOAT THE COMPANY ON LUSAKA STOCK EXCHANGE. ZAMBIA NATIONAL FARMERS UNION CAN BE ENGAGED TO BE LEAD PARTNER. ITS NOT ENOUGH TO WAIT FOR INVESTORS FROM TANGANYIKA AND CHINA AS THOUGH THERE NO ZAMBIANS WITH BRAINS TO REVIVE THE COMPANY. ITS HIGH TIME WE STARTED DOING OUR OWN THINGS.

  20. #23 No matter how much you may want to smear MCS with MMD’s wrongs simply because he was once MMD it did not & will never work. People wanted change & that change the saw in MCS. Did u witness & learn from Zambias midnight/2days turnout for MCS victory? It is not riches or heaps of degrees that will win you peoples faith but rather simplicity, practicality & love for humanity especially the poor & voiceless. He beat “you” hands down becoz u invested in earthly riches/ educational pride/greed & arrogance of power. Yes MCS is no angel neither are Bembas angels but they are sociable, enterprising risktakers. Do not blame them shortcomings/miscalculations of other ethnicities on Bembas. Lets just hope they will produce someone who will sell himself/herself the the way MCS did

  21. I just don’t see how this factory can compete with cheaper far superior quality textile from China. this explains why is the first group of China men are pulling out. Who is currently supplying textiles and related items to our defence forces? 
    If GRZ can get rid of it I’m happy as gov’t should not be in business, as for the cotton farmers; time to diversify guys; I don’t see the new investors buying at your desired prices if they want to compete with sweatshops in Shanghai.  

  22. Cotton Farrmer you peasant, EBD used the “WHY” how can you tell someone questioning that they are not reasoning?? If anything you are the chap jumping to comment without rythme or reasoning….
    Such stupidity needs a license, if you are knowlegable enough just educate dont embarrass people here

  23. #31 I agree with you. Why do these people keep trying to resuscitate a sick white elephant? This government is indeed from the 1970s!

  24. Mr. GBM is trespassing into the roles of other govt line-Ministries. The textile industry is the preserve of an established Ministry of Commerce and Industry. The role of the Minister of Defence is to administer the Army, Zambian Air Force and the Zambia National Service (ZNS). GBM can effectively supervise the ZNS to construct small-scale bridges along a series of feeder roads in many parts of Zambia- and Shangombo included.. GBM must get his hands off the textile industries.

  25. I smell a rat, the Great bag of maize (GBM) is the one in partnership with the chinese, he is just blindfolding us with Tanzanians. How on earth we can get tanzanian investors partnering with chinese in our soil, it would make sense if chinese partnered with a zambian firm, or a pure tanzanian firm came to invest in partnership with a zambian firm

  26. #34,u are the only one who understand that MTXR falls under the ministry of commence,some few bloggers have claim defence but to clear the matter.MTXR IS OWNED BY THE DEFENCE MINISTRY ,BUT IT FALLS UNDER THE COMMENCE MINISTRY.some blogers failed to differeciate btwn ownership and falling under.

  27. For those saying that Mulungushi Textiles falls under GBM’s Defence Ministry, my question to you is why did Sata point to Bob Schinga’s ministry earlier this month to sort out the factory in his speech.
    This is a business related matter now, that should be refered to Commerce or Finance no longer defence especially that they are ironing out contractual issues.GBM is out of place here and by the way i thought he was on holiday with Chikwanda till the end of the month.

  28. hallucinations again here. It is the chinese who ran it down and you want to give it to them again to finish it. Please find credible investors not chinese they only want it non operational so we continue to import their fabricks

  29. I believe that is among the most vital info for me. And i am satisfied reading your article. But want to remark on few basic issues, The website taste is wonderful, the articles is truly excellent :D. Just right task, cheers.

  30. Ba ngwele, Defence can talk about that plant in their capacity as OWNERS, while Commerce can also talk about it as REGULATORS OF INDUSTRY. What is wrong with you? Small minds? I can talk about my shop and the council can talk about my shop. Anything wrong? Now, we need to limit the amount of Salaula coming in and impose heavy duty on cheap Chinese “Nakonde” imports. The idea is to promote local and create employment

  31. SO IT WILL MAKE LIFE EASY AND CHEAPER WHEN THE CHINESE PRODUCE THIS VERY FIBRIC IN ZAMBIA INSTEAD OF US IMPORTING IT,, IT WILL MEAN MT EXPORTING TEXTILE HENCE BRINGING IN MONEY INTO OUR ECONOMY””’ ONLY SOME ONE SIDED TRACK MINDED FOOL WILL WANT TO FIND FAULT IN HON GBM ON THIS;;;;;;;; WE HAVE 20 YEARS OF PF IN GOVT SO THE HATERS WILL CRY A RIVER

    • Not when the new owners have invested in new machinery, clearly you have no idea how cheap Chinese gear is!!  

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