MULUNGUSHI Textiles in Kabwe has delayed to re-open because Government is looking at the demands by the concessionaire Mohammed Enterprises Tanzania Limited (MeTL) Group of Tanzania.
MeTL has requested for some waivers from Government before operations at the Kabwe factory could start.
Deputy Minister of Defence Christopher Mulenga said in Lusaka on Monday that “there are only a few things remaining to operationalise the factory”.
Mr Mulenga said the Ministry of Defence, which owns the Zambia-China Mulungushi Textiles Joint Venture, is consulting the Ministry of Finance regarding the demands by MeTL.
“The Mulungushi Textiles is still owned by Zambia and China. The two sat down and leased the textile together with the equipment to the developer who wanted to start operating it,” Mr Mulenga said.
Among other demands, MeTL Group chairperson Gulam Dewji is reportedly requesting for the banning of the importation of chitenge materials even before the firm starts operating.
“We want to sort out a few issues with the developer [Mr Dewji],” Mr Mulenga said.
On July 30 last year, ZCMT-JV board vice-chairperson Rosemary Salukatula and Mr Dewji signed a 12-year lease agreement.
MeTL Group will inject an initial US$10 million into the textile company and create about 2,000 jobs.
ZCMT-JV ceased operations in 2007 due to operational challenges.
MeTL Group is Tanzania’s largest home-grown company, worth more than US$1 billion with a presence in 11 countries in Africa, namely Uganda, Ethiopia, Kenya, South Sudan, Rwanda, Burundi, Zambia, Mozambique, Malawi, DR Congo and Tanzania.