MeTL to hire Tanzanian experts in Mozambique

By CHABBY BARASA, Daily News
Thu, Oct 19, 2006

FOLLOWING Mohamed Enterprises Tanzania Limited's (MeTL) purchase of Texmoque textile factory in Mozambique, a number of Tanzanian experts will be employed for administration and operation of the machinery at the Northern Mozambican northern city of Nampula.

The MeTL Managing Director, Mr Mohammed Dewji, said on Saturday that he will bank on Tanzanian experts' vast experience in textiles to turn around the giant but paralysed factory.

MeTL has promised to invest 20 million US dollars in rehabilitation and modernization of the textile factory. According to Dewji, production is expected to resume by mid 2007, with a workforce of about 600 to 800 people.

The documents formalising the transfer of ownership of the factory were signed in Maputo last Monday by the Director of the Mozambican Government's Institute for the Management of State Holdings (IGEPE), Silvester Sechene and the MeTL Managing Director.

Texmoque, which was a state owned textile mill closed its operations in 1994. Multiplier, a Portuguese company acquired 70 per cent of its shares in 1996 and took over its management.

However, it failed to revive the unit and start production for various reasons including lack of adequate investment and non-conducive atmosphere for the textile industry in Mozambique at the time.

Mr Dewji said IGEPE, the state agency given the task of privatizing Texmoque, was looking for a suitable investor for reviving the textile mill.

"When they learnt about MeTL's achievement in the textile sector in Tanzania, they decided to send a delegation to the country headed by its Executive Chairman in March last year." He said that the delegation was highly impressed by the work carried out at Afritex Limited, Tanga and the Morogoro-based 21st Century Textiles Limited.