India’s Vagmi Cottons Limited will invest $7 million this year to build a factory in the Mwembeshi area of Zambia’s Chiombo district in the Central Province to process 8,000 metric tonnes of cotton lint annually. The company has already acquired 26 acres for that purpose. The factory will evolve from cotton ginning to a full textile unit in 2020.
Vagmi is also discussing with Indo-Zambia Bank Ltd to study possibilities of a joint venture or leasing the defunct Kafue Textiles Company, an English-language daily in Zambia quoted company chief executive officer Amit Dwivedi as saying.
The company will engage 23, 000 cotton farmers from Mumbwa, Shibuyunji, Chipata, Petauke, Lundazi and Katete in the next two years, Dwivedi said.
Zambia’s High Commissioner to India Judith Japijimpanga had visited Vagmi’s cotton factory in Indore some time back.
The company will supply farmers with seed, chemicals, wool packs and will collect cotton from farming areas.
Vagmi will also build houses for some Zambian staff running the factory.