Saturday, 7 January 2012

ZAM asks gov't to give some shares to local investors once its buys 64percent of mulungushi textiles from chinese govn't

the zambia association of manufacturers (zam) has called on the government to offer some of the shares in mulungushi textiles to local private sector players once it buys off the 64percent shares from the chinese government.
government through the ministry of defence, late last year announced its desire and intentions to buy the 64percent from the chinese government so that it can own and control the textile company.
ministry of defence geoffrey mwamba told journalists in interview that the zambian government has engaged their chinese counter-parts to see the way forward on how it can revamp the once vibrant textile company.
mr. mwamba pointed out that government can only invest fully in the company and bring it back to life, if it buys the 66percent shares from the chinese government but at the moment as no muscle to revamp the company because it is not the majority shared holder.
however zam president chance kabaghe has observed that in the past, government parastatals have failed to run properly without the involvement of the private sector players who are cardinal in economic development.
mr. kabaghe has stated that government must show its commitment of promoting the public private partnership which was created to enhance the economy by giving some of the shares to local companies.
he has noted that local private sector players have become capable of partnering with government in all sorts of joint ventures and government must offer this opportunity to them.
it is believed that once mulungushi textiles in which currently zambia owns 34percent shares is revamped; over 2000 local people will be employed and this will change the economy of kabwe town which is crowlling at the moment.

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