Defence Deputy Minister Davies Mwila says government will lease the Zambia China Mulungushi Textiles in Kabwe if negotiations with the Chinese to re-open the plant fail.

Mr. Mwila says government is keen to have the Textile Company re-opened so that local people are employed.

He has told ZNBC news in an interview that government will consider leasing the Textile firm to any interested investor if the first option fails.

The deputy minister says government has engaged the Chinese Embassy in Lusaka to bring on board the majority shareholder before considering the second option.

Mr. Mwila has asked the people of Kabwe to remain patient as government works out modalities on re-opening the plant.

Zambia has 34 percent of shares in the Zambia China Mulungushi Textiles while the China is the majority shareholder.
The Zambia China Mulungushi Textiles closed in 2008.

Job creation has been top on the PF Government agenda since winning elections in 2011.

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31 COMMENTS

  1. But why was GBM bouncing all over town bragging that the deal was on what was remaining was only to employ and start production.again there was another statement that investors from tanzania have ben found.which is which?

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    • I thought GBM assured the nation that an investor had been `found`?? banana republic of zambia under PF, where any jim and jack can make an announcement weather its true or stupid, nobody is held accountable

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    • SUCH IGNORANCE HATES,THE TEXTILE HAS ALWAYS BEEN UNDER MIN. OF DEFENCE,WERE HAVE YOU BEEN?NOW YOU KNOW WHY.

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    • @rodrik,,, either you don´t know how to read or your `understanding´skils are very poor, your writing tells it all

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  2. Mulungushi Textiles is now rental property, speaks to the capabilities of our government. A certificate in Leadership & Management will not save Zambia. Lets get that straight and start tackling priorities first.

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    • ..’speaks of’ and not ‘speaks to’.
      the two are quiet confusing if not used correctly.
      otherwise your contribution is good enough.

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  3. When are they going to understand that governments do not run businesses? Mulungushi textiles has had its day. Throwing more money at it would be a complete waste. Creating artificial jobs belongs to the Kaunda era.

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  4. They should have let this factory remain down ….now its becoming a liability why? because no investor in their right mind is going to invest in textile in this day and age and risk competing with cheap very high quality Chinese textiles. Why on earth do they think whole textile mill towns closed down in Europe? Add to that the cost of production in Zambia is too high…when people advise them not to pursue such ventures they ignore them.

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    • You are right. Not even India is able to compete with China. Indians are scared of Chinese textiles. They slap high tariffs on Chinese imports.

      Lesotho once invested a lot of money in textile production. All of them have now closed down because they could not compete with the Chinese on price and quality.

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  5. Lets look for answers not complaints.Govt has opted for leasing,what are the other altenatives,crying not an option

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    • Lease what? Who’s going to buy your textile? What answers do you really want? Why do you think top designers outsource production to China? Is the PF ready to slap 100% on imports??…no wonder bogus foreign muzungu investors are common in Africa because you are selfsame people asking to be duped!!
      Wake up!!

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    • No wonder Mushota’s Nick is ever on LT looking for such opportunities.Lease it to who,so it can be striped of it’s assets like some of the Mines.

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    • Cashew nuts are rotting in Shangombo and Kalabo as I type and our gov’t wants to pump money in this very sick half dead horse on its last wobbly legs…a small country like Guinea Bissau benefits greatly from exporting cashew nuts abroad; its farmers and traders are reaping the rewards whereas we are letting this expensive and highly nutritious nut go to waste in Shangombo everyday….this is where the potential for job creation lies include processing the nut in Zambia and cutting out India and you are talking of thousands of jobs and millions of dollars in forex.

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  6. Cashew nuts are rotting in Shangombo and Kalabo as I type and our gov’t wants to pump money in this very sick half dead horse on its last wobbly legs…a small country like Guinea Bissau benefits greatly from exporting cashew nuts abroad; its farmers and traders are reaping the rewards whereas we are letting this expensive and highly nutritious nut go to waste in Shangombo everyday….this is where the potential for job creation lies include processing the nut in Zambia and cutting out India and you are talking of thousands of jobs and millions of dollars in forex.

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  7. The PF Govt is panicking in many aspects including failure to sustain meaningful education. This is an admission of failure on the part of the PF Govt that has been trumpeting promises of re-opening Mulungushi Textile when it had no capacity to revive the industry. Let the Govt revive the operations of the Kafue and Livingstone Textile factories where it has almost 100% share-holding. The Chinese are smart as they cannot be used as “useful tools” in the deception game of the PF Govt. Besides, the agricultural industry has collapsed under the PF regime. Zambia is currently thriving on maize produced by the RB Govt.

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  8. how i would revive the textile company. first Govt needs to sign an SI to allow MOD to single source all its uniforms for at least 3 years. Then source all uniforms from the textile company to increase its capacity and expertise. not only will the company improve its market capabilities it will provide employemnt . after 3 years the govt can now give a tax rebate but open the company to the public for investment. the single sourcing SI can be dropped and allow the company to competitively operate

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  9. Ban Salaula and do what @Mbulawa is suggesting and you will have Mulungushi textile up on its feet in no time.

    The expensive CHITENGES being imported from DRC or Tanzania, and Blankets from Bostwana, Zim, and RSA (not China) can surely be produced at Mulungushi textile. And that entails employment for Zambians!

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  10. Closed 2008 .. no use to re-open the factory as equipments used in production are outdated.. New ideas are needed

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  11. textile industry in africa is a joke what clothes are u going to be producing?
    1)chitenges? if u re saying a large proportion of the zambian population comprises of the youth between 18 n 35 y would u want to venture into this when u know very well this bracket does not were chitenges
    2)protective clothing,last i hed 60% of the population was unemployed
    this thing will be will be bleeding out money because it will not be able to compete if some1 with the right technology and experience in the sector does not take it up govt is right to give to the chinese kamwala is booming with chinese products why not create these here instead of importing
    ,i dont thnk an african is ready for the textile industry,if you cant sow you own clothes y try to clothe a nation.

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Comments are closed.