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MoU signed between IDC, Marubeni aims to rehabilitate Mulungushi Textiles

YarnsandFibers News Bureau 2016-09-08 14:00:00 – Africa

The signing of memorandum of understanding (MoU) between Industrial Development Corporation (IDC) and a Japanese company Marubeni with expertise in the textile industry at the just ended sixth session of the Tokyo International Conference on African Development (TICAD) in Nairobi, Kenya, aims to rehabilitate Mulungushi Textiles Limited is good for Kabwe and the province as a whole.

It is also expected that with the MoU in place, Zambia can buy equipment from Japan to revamp the plant.

And under the umbrella of TICAD, the IDC will access financing to support the running of the Mulungushi Textiles project through the Japanese Bank for International Cooperation.

This is good news for the people of Kabwe and surrounding areas because once operational, the factory will open windows for a variety of opportunies for the people.

Mulungushi Textiles, once a giant company accounting for the majority of working people in the formal sector, is a relief for many youths struggling to find jobs.

This will completely change the economic landscape for the town and could just mark the turnaround for the local economy, which has been yearning for investments for a long time now.

The decision by President-elect Edgar Lungu to re-commission the factory nearly 10 years after it was closed is a clear manifestation of Government’s resolve to revive the district.

Ideally, the factory plans to re-develop the out-grower schemes for cotton and sunflower. It is thus expected that cotton and sunflower will be sourced from farmers.

In Central Province, farmers are spread from Nansanga farm block in Serenje and Mukonchi and Kabwe farm block all the way to the Chisamba farm block. These will be key in the supply of raw materials to the factory.

The out-grower scheme is expected to support at least 10,000 farmers within Central Province.

The factory is a huge and highly mechanised investment and IDC is optimistic of brightening the city of Kabwe by reviving the operations of the

factory.

Once operations resume, the company will produce a number of textile products which include textile lint, yarn, grey, cloth and garments.

IDC is finalizing the detailed project concept which is expected to accelerate the engagement with Marubeni to enable IDC access finances through Japanese Bank for International Cooperation.

The MoU comes after the re-commissioning of the factory by President Lungu. Mulungushi Textiles Limited will be fully operational and be able to support economic activities as well as creation of employment opportunities.

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