Mulungushi textiles to be leased

THE Government will soon lease the Zambia China-Mulungushi Textiles in Kabwe to an independent investor who will operate it profitably on a large scale basis, Defence Minister Edgar Lungu has said.
This follows several offers from potential investors within Africa who have shown interest in reviving and running the fabric-manufacturing firm.
Mr Lungu said the procedure to lease the firm by a technical committee which was established by Government last year was nearing conclusion.
Mulungushi Textiles was run under a joint venture between the Government of Zambia and that of China, but the partnership fell through forcing the company to close down in 2007.
The major stumbling block in revamping the firm was the lack of cooperation from the Chinese Government which has been contacted several times by their Zambian counterparts on the way forward.
“Since the Chinese do not seem to show interest in reviving the firm, the Government established a technical committee to lease the property so that another investor can operate it.
“If the terms and conditions of the lease agreement prove to be favourable, the board will decide the suitable investor to take up the company,” he said.
Mr Lungu said several investors from Africa had made offers to take over the company which had the capacity to help revamp Zambia’s textile industry through job and wealth creation.
Zambia owns 34 per cent shares in Zambia-China Mulungushi Textiles while the Chinese Government has a 66 per cent stake in the firm.
At its peak, the firm employed more than 2,000 people on permanent basis and engaged several others as casuals, thereby contributing greatly to the economic wellbeing of the former mining town.