Mulungushi Textiles rebirth on
Published On July 12, 2016 » 3625 Views» By Bennet Simbeye » Business, Columns
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NamutoweTHE Zambian textile and garment sub sector has the capacity to contribute immeasurably to the economic development of the country if well harnessed.
Being labour intensive, it has the potential to greatly contribute to employment and wealth creation at all stages of its value chain.
During the Import Substitution Industrialisation (ISI) of the 1960s through to the 80s, the sub Sector received substantial Government support enabling it to become the biggest contributor to the country’s Gross Domestic Product (GDP).
In this period, Ndola and Livingstone together hosted more than 130 textiles and garment manufacturing companies.
Further, companies like Serios International in Luanshya, Mulungushi Textiles of Zambia (MTZ) in Kabwe and Kafue Textiles of Zambia (KTZ) in Kafue, were household names.
They used to contribute massively to the country’s cotton value addition programme and job creation.
But with the fall in copper earnings and the oil shock of 1975, the import Substitution Policy proved to be costly to the Government and the sub Sector started to experience underutilisation of capacity.
This was partly due to the nature of the investment in the industry and the scarcity of foreign exchange for imported inputs and spare parts.
Government is putting up deliberate measures to support the growth of the sector.
After many years of underperformance, Government has decided to come up with Commercial, Trade and Industrial (CTI) Policy  from 2009 to 2014 and the Strategy Paper on Industrialisation and Job Creation to revive textile industries.
The policy which was launched in 2013, identified textile and garment industries as one of the  priority sectors for Zambia’s industrialisation and economic development.
According to the Industrialisation and Job Creation Strategy, the textile and garment manufacturing sector is capable of creating 4,100 new jobs in the next five years.
As a way of promoting the textile industry, Government will ensure that all public institutions like the Prisons Service, Zambia National Service (ZNS), and Zambia Police purchases 20 per cent of their garments from the local manufacturers like Unity Garments.
This will boost the textile and garment industry to greater heights and eventually gain ground locally, regionally and internationally.
There is need therefore to revive the textile and garment sub sector in an effort to place the company to a position  where it will be able to produce garments locally for both local and international market.
The textile and garment industries need to diversify and go into manufacturing  of quality clothes which can compete with those from the rest of the regional and international markets.
It is against this backdrop that the Industrial Development Corporation (IDC) commenced initial operations of MTZ which ceased operations as Zambia-China Mulungushi Textiles (ZCMT) in 2007 as a result of financial difficulties in Kabwe.
This is being revived to support the economic activities not only in Kabwe but the country as a whole.
IDC executive director operations, Paul Siame says preliminary works are underway with 220 people already employed to undertake general works and assessment of the service machinery.
A further 100 workers have already been recruited for the garment section and are set to start work soon.
Under this section, Personal Protective Equipment (PPE) clothing as well as uniforms for prisoners, security services, health officers and the education system will be designed and made.
“We have started the initial operations and we will begin with the garment and blanket section, ginnery and weaving section as well as the cooking oil plant within this month.
“At this stage we have engaged 220 people and another 100 workers recruited as designers and tailors for garment section,” Mr Siame says.
The company is now under the IDC and the strategy is to work toward the operationalisation of all the sections to create a viable textile industry and jobs.
Mr Siame  says to ensure sustainable revenue generation for the textile operations; IDC was also set to develop 100 megawatts (MW) of  thesolar power station on the land owned by MTZ.
He says preliminary works are being undertaken including assessment and servicing of equipment.
Once fully operational this year, a total of 598 jobs would be created.
Most of the textile industries in Zambia went under after privatisation because of stiff competition from imports.
If properly managed, the textile industry has the potential to significantly contribute to the national Growth Domestic Product (GDP).
The textile and garment industries in Zambia have a huge potential to contribute to  Zambia’s quest to create jobs and wealth for the citizens.
A number of studies have been undertaken and what remains is the implementation of the proposed solutions.
MTZ comes as a relief to the people of Kabwe as well as the nation at large in terms of employment and other support services.
The news about the pending revival of the once-upon-a-time textile giant which employed majority of the people in the
formal sector is a relief to many youths who are currently struggling for job opportunities.
This will completely change the economic landscape of  the town and could just mark the turnaround for the local economy which has been yearning for investments for a long time now.
The commencement of the initial operations of the factory by the IDC is a clear indication of the Government’s resolve and desire to revive  the economy of  Kabwe District in earnest.

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