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Thu, 20 Feb 2020 11:29 - Updated Thu, 20 Feb 2020 12:30

Angola spends over USD 200 million in clothes importation

Luanda - Angola spent, last year, USD 170 million importing brand new clothes and USD 65 million for used clothes. These funds could be saved if the country's textile industries were operating in full capacity.

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President João Lourenço visits textile factory Textang II

Photo: Pedro Parente

State secretary for Industry, Ivan do Prado

Photo: Pedro Parente

According to the State secretary for Industry, Ivan Prado - who provided this information last Wednesday to the President of the Republic, João Lourenço, during a visit to the manufacture company Nova Textang II - with the rehabilitation of the country's three main factories (Satec, Alassola and Textang II), private textile companies are able to produce 20 million items of clothing per year.

The Nova Textang II undertaking has the capacity of producing 250,000 metres of cloth per month, resulting from an investment of USD 251 million, used in the rehabilitation of its infrastructures and machineries.

The repair of these manufacturing plants in the period from 2009 to 2013, brought about 300 direct jobs, according to the secretary of state.

Notable steps in the rehabilitation of the Nova Textang II

The rehabilitation of Nova Textang II was part of the recovery package for the country's three main textile units, an initiative that received Japanese financing of about USD 1.2 billion.

In 2009, following a proposal from the Ministry of Industry, an Executive Programme for the Industry Sector was approved for the 2009-2012 period, which included the rehabilitation projects of Africa Textile, formerly Satec and Nova Textang II.

As part of this programme, Nova Textang II, located in the Municipality of Cazenga (Luanda Province), benefited from an investment of USD 235 million, which was used for the rehabilitation of infrastructures, the hiring of personnel and the purchase of equipment provided by the Japanese company Marubeni.

After its rehabilitation and modernization, Nova Textang II and the other two, in September 2013 were privatised, a process that was marked by irregularities.

Since the delivery of the three factories to private companies, Africa Textile has produced less than 10 percent of its capacity, Nova Textang II less than five percent and the former Satec 0 percent, ANGOP learnt.

In March 2017, after analysing the situation of the textile factories, the government decided to put an end to their private ownership.  

Subsequently, the government opted for the gradual privatization of the units, subjecting the private ones to previous requirements that the mentioned companies did not fulfil.

It was in this context that the Ministries of Finance and Industry proposed to the head of the Executive Branch the revocation of Presidential Dispatches numbers 108 to 110, of 2018, thus removing the ownership of the three textile factories from private companies.

In June last year, the Attorney General's Office (PGR) seized these units, in the face of irregularities in the privatisation process and non-compliance by the new owners with contractual clauses.

At the time, the director of the PGR’s Assets Recovery Service, Eduarda Rodrigues, said that the legal action  made perfect sense, since the State was the only one to bear the costs.

"They benefited from a credit line, with a sovereign guarantee and never paid that debt. It was the Angolan state who paid the international banks monthly ", she underlined, referring that for more than a year the topic was discussed, but without solution.

In August 2018, the Angolan state completed the process of recovering the three textile factories built with public funds and confiscated them in June 2019.

Tags Industrias  

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