The Angolan Government officially completed the recovery of three strategic textile factories—Textang II (Luanda), África Têxtil (Benguela), and the former Satec unit (Dondo, Cuanza Norte)—after the Prosecutor General’s Office (PGR) confirmed serious irregularities in their privatization processes.
The facilities, previously built with public funding, were foreclosed in June due to violations of contractual obligations and flaws in their transfer to private entities.
Factories Returned in Three-Stage Process
The handover process began on Tuesday with the return of Textang II, followed by África Têxtil on Wednesday, and concludes this Friday with the reintegration of Satec.
This coordinated action is being overseen by the Attorney General’s Office and IGAPE (Institute of State Assets and Equity Management).
Revitalizing Angola’s Textile Industry
Strategic Move to Diversify the National Economy
The recovery forms part of the government’s strategy to rebuild the textile value chain, diversify the economy beyond oil, and generate large-scale employment. Reviving these factories is expected to strengthen domestic textile production and reduce import dependence.
Massive Investments and Rising Costs
Under the original Executive Programme, each manufacturing unit was expected to require USD 50 million for rehabilitation, financed by Japan’s JBIC.
However, IGAPE reports that final project costs ballooned to more than ten times initial estimates, raising concerns about mismanagement and lack of transparency in previous administrations.
Operational Collapse After Privatization
Factories Operated Far Below Capacity
According to IGAPE, production levels dramatically declined after privatization:
- África Têxtil operated at less than 10% capacity
- Textang II operated at less than 5%
- Satec recorded 0% production, remaining completely idle
These results failed to meet national industrial goals and prompted government intervention to safeguard state assets.
Government Takes Back Control
Correcting Irregularities and Preparing for Relaunch
The PGR confirmed that the privatization process involved irregularities linked to Joaquim David, former Minister of Geology, Mines and Industry.
The government’s decision to retake ownership, first signaled in 2017, aims to restore operational performance and ensure the factories fulfill their intended economic role.
With recovery now finalized, Angola is expected to initiate new strategies to modernize the textile industry and secure investors capable of restoring production, creating jobs, and strengthening the country’s industrial competitiveness.
, África Têxtil (Benguela),){kind=link}