Mozambique is exploring ways to reopen Textafrica do Chimoio, a textile firm closed 25 years ago rendering more than 3,000 jobless, prime minister Carlos Agostinho do Rosário recently announced while visiting the Manica province. He visited the factory with Institute for State Participation Management officials at the request of the country’s president.
To wind up the company and pay compensation, the Textáfrica board used a $1.1 million loan from the Millenium Bim Bank using the houses the company owned in neighbourhoods A and B of the city of Chimoio as collateral, according to a newspaper report in the country.
Following the bank’s threat to evict the workers and sell the houses and other assets of the company to recover the loan, the government decided to intervene to find a negotiated solution to ensure that the bank received the money and the company starts operations again. (DS)
Source:http://www.fibre2fashion.com/news/textile-news/india/